Five questions to ask in damages claims resulting from non-disclosure during due diligence
In their presentation "Pitfalls to avoid when assessing damages in M&A; disputes" Jeff Litvak and William Kennedy gave an example of a target company that lost a significant customer just prior to the deal closing and did not disclose this loss to the buyer. The impact on purchase price or – to more broadly apply [...]
Peyton Manning: a new, if unconventional, definition of personal goodwill
Jim Alerding (another longtime Hall of Famer from the AICPA) points out that, if you’re confused about personal goodwill, just think of the quarterback of his home team; Peyton Manning. “I challenge any one to replace him and keep the same value,” he said. Substitute your own home team all-star if you need to. As [...]
Two star-studded additions to the AICPA BV Hall of Fame
Linda Trugman (Trugman Valuation) and Bob Duffy (Grant Thornton) are the two latest appraisers to join the AICPA’s BV Hall of Fame. Congratulations from BVR! Bob showed up at the awards ceremony today not knowing he was an honoree…
Appraisers have to be business people first…
"We’re appraisers, but we’re business people as well," says Jim Ewart (Dixon Hughes). Ewart was speaking on normalizing financial statements for appraisals, but quickly the subject of poor management came up from his audience at the AICPA National BV Conference. Jim’s point: we have an obligation to explain to our clients that using a company [...]
What risk free rate are you using now, after all the debate?
After all the ink that’s been spilled, few people have changed the risk free rate. In a room of 500 appraisers, only a few would (publically) admit to making adjustments. Here are a few comments from the AICPA National BV Conference: o “Rates were so low at 12/31/08, we switched for awhile to an RFR [...]
Have we seen the end of “cap rate” valuations?
Rod Burkert further comments that, a half dozen years ago, he could often do capitalized cash flow (single period) valuation for smaller, stable businesses. “Some average of past results was a reasonable proxy for what the company could expect to see on a go-forward basis.” But, now, nearly every business requires a projection and a [...]
Business appraisers are better prepared to provide valuations now than during the last downturn
“Since we’ve lived through the ‘irrational exuberance’ of the 90’s, are we already prepared for this downturn?” Rob Burkert (Burkert Valuation Advisors) asks 400 appraisers at the AICPA National BV Conference. There’s lots of evidence he points to that the profession is better able to withstand valuation volatility. First, he points to the long term [...]
Need some time on the beach next October?
The 2010 ASA-CICBV Advanced BV Conference will be held October 4-6 in South Beach, Miami next year. It might be worth marking your calendars now…conference chair Linda Trugman is already at work planning the sessions for this once-every-fourth-year joint event.
3Q 2009 Economic Outlook Update™ Available Soon!
The 3Q 2009 Economic Outlook Update™ will be available for download on November 15th. BVR compiles expensive research from many sources into one convenient – and cost effective – resource. We do the research so you don’t have to waste your time or money—just drop our analysis and charts into your valuation report. Here is [...]
What do lawyers expect from their experts?
A panel of top litigators at last month’s BVR Divorce Summit agreed that they stress credibility first and foremost. But, they also demand creativity, communication skills, and commitment from their business appraiser experts. Good work is not enough. An expert’s analytical skills and the quality of their reports are a given. These days, being [...]
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