Healthcare reform offers opportunities for appraisers…or does it?
The answer is “it depends, and ‘depends’ is always good from a healthcare valuation perspective,” Elliott Jeter (VMG Health) said in last week’s BVR webinar on healthcare reform and business valuation with co-presenters Don Barbo (Deloitte Financial Advisory Services) and Mark Dietrich, CPA/ABV. Barbo agreed, adding that health care reform presents a “wonderful opportunity” for [...]
Mercer responds to NACVA/IBA debate on holding periods for minority interests
By Chris Mercer Let me first say that there is nothing magic about the concept of an expected holding period. Assume that the marketable minority value of a business is, indisputably, $1.00 per share. Assume that a restricted stock transaction occurred at $0.80 per share, or at a 20% discount. What was the expected [...]
Canadian BV thought leadership now online and searchable
The Canadian Institute of Chartered Business Valuators and BVR have expanded an already strong partnership; as of today, BVR’s BVResearch now includes all past articles from CICBV’s Valuation Law Review and Journal of Business Valuation. This rich historical database will be augmented as new articles are published by CICBV in the future. All this content [...]
New insight in estate and gift tax valuation
Look for 2010 edition of BVR’s Guide to Business Valuation Issues in Estate and Gift Tax at this end of June. The Guide presents an update to issues such as tax-effecting S-Corporations, non-signing tax preparer penalties, and legal challenges from the IRS. Pre-order the Guide here
“Covert” forensic tools to track individuals from Dorrell and Lara
The web offers appraisers and forensic accountants a huge number of new ways to track funds, and corporate entities—and particularly individuals. Some of Darrell Dorrell’s (Financial Forensics) favorite “covert” forensic tools for finding information on individuals were presented at the recent NACVA conference in Miami. They include: www.BlackBookOnLine.info www.veromi.net www.statsoft.com http://www.fincen.gov www.zoominfo.com www.accurint.com www.knowx.com And [...]
Damodaran emphasizes “indifference to buying or selling” in his new definition of fair value
With the push towards fair value accounting, Aswath Damodaran (NYU Stern School of Business) recently offered his “simple definition (and test) of fair value” in his blog Musings on Markets: “If an asset is valued at fair value, the appraiser (or his client) should be indifferent to being either a buyer or a seller at that [...]
Supply-side ERP more reliable, says Delaware Chancery
In the latest “must read” statutory fair value appraisal from the Delaware Chancery Court, the decision (by V.C. Strine) tackles such critical valuation topics as deference to the market price, determination of the terminal growth rate, historic versus supply-side equity risk premium (ERP), and selection of appropriate beta. In a case that was “largely [...]
Experts address the challenges of valuing software companies
This Thursday June 24th, BVR’s Webinar Industry Spotlight Series presents “Software Company Valuation,” hosted by Mike Pellegrino (Pellegrino & Associates) and Robert Schlegel (Houlihan Valuation Advisors). Schlegel and Pellegrino, a former software engineer and author of BVR’s Guide to Intellectual Property Valuation, will tackle the valuation challenges appraisers face when valuing software companies. For more [...]
New financial benchmarking data posted
The 2009 financial content has been posted to BizMiner. This means that all BizMiner industry, competitive research and reports now have access to historical data from 2002 to the end of 2009. BizMiner covers 16,000 lines of business in 300 U.S. markets. No other source reports at this level of detail. Learn more about these financial [...]
Are you neglecting your cash flow forecasts?
Inputs for the cost of capital are increasingly evolving, and much debate takes place over which sources reign supreme—just look at the loyal camps that support ERP data from Duff & Phelps and those that support Ibbotson’s. With all this debate and focus on the cost of capital, are we neglecting our earnings forecasts? Linda [...]
Share your thoughts...