Must an expert’s 10-year old report comply with current BV standards?
“Does a valuation analyst have to update his/her report, which was prepared 10 years ago if s/he has to testify on that report in 2010? Do the current professional standards apply to that report?” Analyst Nilufer Usta posed these questions in a recent discussion on LinkedIn (note: you may have to join the BV Professionals [...]
Direct secondary market sales: the trend continues to build
Direct, secondary market transactions among private equity companies are surging, according a recent survey by PitchBook (co-sponsor of the new PitchBook/BVR Guideline Public Company Comps Tool™). Already, PE investors have completed 56 deals this year—compared to only 45 for all of 2009. These sales accounted for nearly a third (28.1%) of total U.S. exit activity [...]
Auto dealers are “poster children” for the impact of the downturn on business values
“Don’t trust historical earnings when doing the income approach for auto dealerships,” warns Jim Alerding, speaking at BVR’s webinar on Valuing Auto Dealerships. ”The next year earnings and DCF issues, which depend on future earnings, are going to be the most pertinent.” This presents a problem for appraisers with auto dealer engagements–market data, even from [...]
Should a Private Cost of Capital Method replace CAPM and BUM?
Most appraisers recognize the judgments and assumptions built into the process of converting measurable public market data into proxies for private company valuation. Capital asset pricing needs to be “modified” with a series of adjustments to the cost of capital figures derived from the public markets. This standard valuation process that has some financial theory [...]
Industry experience carries the day in front of Tax Court
Contributed by Sherrye Henry, Jr., Esq. Legal Editor for Business Valuation Resources, LLC. Ringgold Telephone Co. v. Commissioner., T.C. Memo. 2010-103, 2010 WL 1850426 (U.S. Tax Ct.)(May 10, 2010) BVR customers should take note of a series of decisions in the last few months which show a trend for an expert’s industry experience to trump [...]
Siebert becomes CICBV honorary fellow
Congratulations from BVR to Lorne Siebert of Siebert Pask in Calgary; he’s the 2010 recipient of the FCBV honourary fellow designation–the highest business valuation honour in Canada. Lorne receives his award at the CICBV/ASA National Conference in Miami October 6th.
Help your lawyer clients understand BV with update to Pratt’s “BV Handbook”
Business valuation confuses many lawyers. So, the American Bar Association hopes to sell lots of the latest edition of Shannon Pratt’s The Lawyer’s Business Valuation Handbook. Most sections of the 675+ page handbook include illustrative “Questions to Ask” that can be employed to gain a better understanding of the expert’s treatment of the subject matter. Extensive [...]
The debate on 409A valuations continues
We received another response to the item on 409A valuations in BVWire™ piece two weeks ago (“CFOs don’t value appraisals done for 409A compliance”): There are those private company CFO’s who see ‘value’ in a properly completed – and priced – 409A engagement,” reports Mark Krikovich (MK Appraisal Group). “We are hearing from a number [...]
Valuing an auto dealership? Let Alerding, Yeanoplos and Woodward guide you
On Thursday July 29th, appraisers Jim Alerding (Clifton Gunderson) and Kevin Yeanoplos (Brueggeman and Johnson Yeanoplos) will join Carl Woodward (Woodward & Associates) for “Valuing Auto Dealerships”, a BVR webinar. From “bail-outs”, recalls, “cash for clunkers”, and industry innovations to operations, accounting, and service and repair departments, these three experts will cover everything you need [...]
Comments on new IVSC business valuation standards due by September 30th
Yesterday the International Valuation Standards Council (IVSC) released an exposure draft of proposed new International Valuation Standards (IVS) for public comment. The IVS are designed to: promote consistency and aid the understanding of valuations of all types by identifying or developing globally accepted principles and terminology, identify and promulgate common principles for the undertaking of [...]
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