Add-on certification in intangible asset valuation approved by ASA
The International Board of Examiners has approved the Business Valuation Committee of the ASA’s proposal for a certification in intangible asset valuation. Bill Quackenbush, BVC chair, tell’s BVWire that “we are now entering the implementation phase, and are working on developing the exams and process procedures for applicants.” The designation will be an “add on” [...]
Do “swing vote” shares deserve a premium?
There’s an interesting discussion on this topic at the Business Valuation Professionals group on LinkedIn (you’ll need to register if you’re not a member)begun by Kevin Czerak (Kutchins, Robbins & Diamond, Ltd.). He’s got a case where a 39% shareholder is trying to acquire the shares of a 14% owner. One noteworthy response so far [...]
Deferred IT spending–another reason to increase company-specific risk?
Writing for Pitchbook, Stan Mork of RSM McGladrey acknowledges research by Gartner and others confirming that midsize companies have halted spending on IT upgrades and enhancements. Mork offers this very reasonable description of what this means to the value of private companies: Outdated, undersized, non-standard or custom-developed platforms point to cost, data integrity, regulatory and [...]
More support for using more than just DCF (or other single method) in valuations
In re Chemtura Corp., 2010 WL 4272727 (Bkrtcy. S.D. NY.)(Oct. 29, 2010) The Chemtura Corporation, a specialty chemical maker and its affiliates, filed for bankruptcy in March 2009—becoming the third major U.S. chemical manufacturer to succumb to the recession. A year later, the debtors proposed a plan of reorganization and settlement of claims. No creditors [...]
Sad news: long time appraiser and friend of the profession John Gilbert dies
We’ve just learned that John Gilbert, the Montana appraiser with a quick wit and great professional style, passed away. His obit is here. Sad news–and best wishes from BVR to all John’s friends and family. “John was known for being a consummate professional and mentor,” says colleague Terry Allen, ABV, ASA, CPA. “He loved [...]
In 2011, will the definition of “willing buyer” change?
Here’s an interesting factoid reported today from Pitchbook about deals in 2010–and, as we’ve all noticed, more and more of them are private equity firms buying from private equity firms: Secondary transactions, or sales from one PE investor to another, have exploded this year. So far in 2010, there have been 121 completed secondary transactions, according [...]
BVR continues to provide valuation Insights
We’ve just posted new articles from Insights, the esteemed valuation quarterly published by Willamette Management Associates and provided exclusively to subscribers of BVResearch. The new content includes: Analysis and Observations Regarding the Keller v. United States Decision (Steve Akers) Estate Planning in Uncertain Times (John H. Draneas, Esq) Reallocating Wealth After Christiansen: A Fresh Look at Formula Clauses [...]
Need evidence that ERP requires analyst judgment? Here it is
A hat tip to Ron Seigneur (Seigneur Gustafson) for letting us know Pablo Fernandez(IESE Business School, Madrid, Spain) has collected recommendations on the equity premium from 150 corporate finance and valuation textbooks published between 1979 and 2009 by authors such as Brealey, Myers, Copeland, Damodaran, Merton, Ross, Bruner, Bodie, and Arzac. In his updated article, “Equity Premium [...]
New articles announced from Journal of Business Valuation and Economic Loss Analysis
Berkeley Electronic Press’ latest issue of Journal of Business Valuation and Economic Loss Analysis includes the following articles: Risk-Adjusted Damages Calculation in Breach of Contract Disputes: A Case Study (Frank C. Graves, Bin Zhou, Melvin Brosterman, and Quinlan Murphy) The Discount for Lack of Marketability in Privately Owned Companies: A Multiples Approach (John K. Paglia [...]
Need CPE by year-end? Two great opportunities from BVR
BVR’s Training Program will close out 2010 with two excellent webinars: TOMORROW, December 16, Scott Beauchene (Strategic Value Group) and James Walling (Grant Thornton) will join BVR for “The Use and Application of Option Pricing Modeling,” a 100-minute examination of the proper implementation of valuation techniques that have come under increased scrutiny as of late. [...]
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