Need SEC private transaction data? Look to Pratt’s Stats
Over one-third (5,386 of the 15,329, as of today) or so private company sales included in Pratt’s Stats come from SEC-filing buyers. If you want to do a market approach using only public company buyers, simply select the “public” option under the “Buyer Type” menu. Another frequently overlooked benefit of Pratt’s Stats: all public deals [...]
More distributions equal lower discounts, Porter and Frazier agree
“There could be situations in a tiered partnership where a partner wants reinvestment rather than distributions, but this would be rare,” opined Will Frazier in today’s BVR webcast looking at the new Astleford case. John Porter (who is also the co-chair of the Georgetown/BVR Summit on Valuation, Tax, and Estate Planning November 10), agrees. [...]
Mercer Capital on the accounting considerations in the acquisition of a failed bank
“Assisted transactions whereby the acquirer obtains the failed bank’s assets, including its loans, along with a loss-sharing agreement present a much more complicated series of valuation and accounting issues,” according to a recent Mercer Capital article, “Accounting Considerations in the Acquisition of a Failed Bank.” When purchasing a failed bank, acquirers must answer several challenging [...]
Court rejects use of historic three-year average under Daubert
Have you ever used a business’s three-year historical annual average to project sales and revenue growth, EBITDA or capital expenditures? Have you ever used the term “zone of insolvency” to describe a business on the brink of bankruptcy? Does your valuation report sometimes omit the precise formula used in your DCF? If you answered “yes” [...]
FMV’s Hoffman reveals unique aspects of highly-contested Ludwick case
A Tax Court case usually has a large dollar amount at stake or a divisive issue, and Ludwick v. Commissioner (reported in last week’s special edition BVWire™) tackled the long-contested application of valuation discounts to undivided half-interests in real property. “What made this case unique—and what certainly contributed to it reaching Judge Halpern—was a Tenancy [...]
When all else fails, use a forward-looking approach to valuation
Keith Prescott addressed this question in last week’s BVR webinar Valuing Construction Companies. While his thoughts are particularly relevant to the hard-hit AEC market, they should be recalled in any valuation where volatility is pronounced. “The forward-looking approach will probably be the most valid given the current economic environment and in the near future,” said [...]
Working on a tax valuation? Beware of the jurisdiction, Laro warns
The taxpayer’s residence determines in what jurisdiction the Tax Court “sits” and what federal circuit law applies. These is just one of the numerous interesting and illuminating facts presented by Judge David Laro and appraiser Mel Abraham during their session to the San Francisco Valuation Roundtable last week. Most attendees were amazed to learn, for [...]
Dunn to BV experts: Alert attorneys to the power of the discount rate
“In my experience, most lawyers don’t understand the power of numbers, and they may ignore the discount rate in preparing for trial,” attorney and author Robert Dunn told attendees at last week’s 24th Annual Seminar by the Valuation Roundtable of San Francisco in Oakland, CA. “To a lawyer, 8% versus 12% may not sound like [...]
A good weekend for BV at The Appraisal Foundation
Our stringer reports that a number of developments occur at this weekend’s TAF meeting: 1. TAF Board member Jay Fishman was appointed vice chair of the new Appraisal Practices Board. The mandate of this new group: The APB is responsible for issuing Valuation Recognized Methods and Techniques which are intended to provide support and guidance to [...]
CPE Opportunity: tiered partnership structures
Join William Frazier and John Porter in a webinar on valuation challenges borne of the increased use of FLPs and other ownership structures. “Valuing Tiered Partnership Structures” is today, Thursday, May 27th at 10:00 am PT/1:00 pm ET. For more information, or to register click here. Two CPE credits are available.
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