Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
What Will the Wall Street Meltdown Mean to the BV Profession?
Who knows how things will have shaken out once you receive this publication. However, at press time, the stock market (both here and abroad) was in the midst of a freefall that found the Dow Jones Industrials dropping to their lowest levels in five years ...
Thousands at Valuation 2000
Discounts & Premiums Meet Levels of Value: The Final Chapter Presented by Z. Christopher Mercer, ASA, CFA. Mercer's presentation continued the exploration of the "levels of value" outlined ...
What Is the State of the Equity Risk Premium Today?
“The ERP is one of the most important issues we have to challenge as a profession,” said Roger Grabowski, speaking at the AICPA Business Valuation Conference last month. “When you do an analysis and come up with a rate of return for the discount rate that ...
New Articles Ask Us to Rethink the Equity Risk Premium
A stream of articles and public commentary in the past couple of months has questioned the validity of the historical equity risk premium.
Letter to the Editor: Company-specific risk in action
By now everyone is aware of Toyota Motor Company’s public relations nightmare related to sticking accelerators, braking, and now steering issues. This has been a rather quick and precipitous fall from grace for an automotive company that was previously k ...
BVU Profile: The Challenges of Bringing a New BV Methodology Into Acceptance
Peter J. Butler, CFA, ASA, founding principal of Valtrend (Eagle, Idaho), has championed a more quantitative and empirical approach to developing the cost of capital. This approach is embodied in the Total Cost of Equity Calculator, also known as the Butl ...
Guideline public company method - control or minority value?
Conventional business valuation wisdom says that the guideline publicly traded company method (GPCM) results in a minority value.
BV News and Trends September 2021
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends May 2020
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
Front-Burner Issues Presented at This Year’s NYSSCPA BV Conference
Inputs into the cost of capital, cryptocurrency, and financial projections are just a few of the important topics discussed at the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) in New York City. BVU attends this event every year, and here are a few takeaways from the sessions.
Business Valuation Year in Review 2020
What a year! This is a recap of developments in the business valuation profession under the shroud of COVID-19 including the latest thinking in methodologies, changes in regulations, new and updated resources, and practice-building ideas.
BVU News and Trends March 2020
A monthly roundup of key developments of interest to business valuation experts.
Fair Market Value: A Complicated Standard
This article was triggered by a recent article by Jim Hitchner that maintained that it is a “myth” that fair market value assumes a financial buyer, without synergistic benefits. The author believes the answer to the question is more nuanced than the term “myth” suggests, which prompted him to revisit his thinking on the concept.
Amid Market Data Volatility, the Best Option Is a More Rigorous DCF
A panel of global valuation experts who conducted a recent webinar co-sponsored by RICS, and also NACVA, the ASA, GACVA, and CBVI gives their comments.
Hot BV Topics From the AICPA FVS Conference
Almost 1,000 attendees at the AICPA Forensic & Valuation Services Conference 2013 in Las Vegas learned about the latest developments in business valuation. Among the many topics discussed were new perspectives on the value of control, how valuation report ...
Valuers Are Now Spending More Time ‘on Everything’
A panel discussion during the Global Town Hall: State of the Global Markets and Their Effect on Business Valuation event talked about having to dig more into income statement line items, perform more sensitivity analyses, request multiple forecasts, change Excel models, and more.
Have We Lost the Forest For the Trees?
When BVR recently announced the launch of the Cost of Capital Professional, the author was pleased with its back-to-basics approach to estimating the cost of equity. The growing complexities of various aspects of business valuation prompted him to write this article, which speaks to the need to preserve the “art” of valuation.
BVU Profile: NACVA Porter Award Winner Offers Advice and Insights to Valuation Experts
Editor's note: P. Dermot O’Neill has over 40 years of experience as a CPA with a diverse background and practice. He is the president of P. Dermot O’Neill, CPA PC, which concentrates on business valuation, forensic accounting and litigation support, trans ...
BVU’s Editorial Board Reflects on the Valuation Profession
BVU has been honored to have so many esteemed valuation professionals on its editorial advisory board over the years. We took the occasion of BVU’s 20th anniversary to invite some current board members to reflect on the state of the profession and the pra ...
BVU News and Trends March 2018
A monthly roundup of key developments of interest to business valuation experts.
A Lesson in Healthcare Supply and Demand—and Market Power, Part 1
This is a follow-up to the author’s landmark research on the fair market value of physician compensation. The issue of insurance market structure and the related impact on the negotiating of provider contracts is addressed in Part 1 of this article. Physician distribution and the impact of local payment rates that determine compensation is addressed in Part 2.
Latest Techniques to Sort Out the Complexities of Brand Valuation
The most visible and recognizable intangible asset for a firm is its brand. A brand contains legal protections that trigger value. But knowing how to quantify the latter in view of the former can be perplexing to even the most experienced valuation profes ...
Some Key Takeaways From the AICPA FVS Conference
Over 1,100 attendees converged on Las Vegas for the AICPA Forensic and Valuation Services Conference 2015. BVU was there and heard some outstanding speakers and topics. Covered below are just a few of the takeaways. Future issues will cover these—and more.
Minority Shareholder Receives Award of $12 Million for Breach of Contract, $58 Million Buyout Award for Minority Interest
This shareholder dispute case involved two businesses three brothers in Minnesota owned. One of the brothers, Jim Koch, had a falling out with the other two, Randy and Dave Koch. A temporary agreement was made among them in 2006, but subsequently the relationship and actions of the parties deteriorated. In particular, an IRS audit of the two businesses triggered a disagreement as to whether required payments under the agreement had to be tax deductible. Certain actions by the defendants breached the 2006 agreement as determined by a jury resulting in a damages award of $12 million. The court then held a bench trial to determine the value of the two businesses for determining the buyout amount for Jim’s interest in both businesses. Experts for each side testified as to value. The opinion provided a good analysis of the various issues in the methodologies each of the experts used.