05 / December 2014

AICPA-FVS conference buzz

Posted in: BVWire News Written by: Andy Dzamba
Categories: business valuation accrediting organizations cost of capital industry analysis S corps tax affecting
Tags: american institute of certified public accountants (AICPA) auto dealership discount for lack of control (DLOC) estate and gift tax rules of thumb tax affecting

BVWire attended the excellent AICPA-FVS conference in New Orleans. Here are just a few of the many interesting pieces of information we picked up.

Does the size premium still exist? Academics and investment pros say the size premium has vanished based on research that shows it’s been declining over time. But BV experts claim it’s alive and well (e.g., see Pratt and Grabowski’s Cost of Capital, 5th Edition).

What’s the most likely IRS audit trigger for estate/gift tax returns? It’s the presence of DLOM or DLOC in a valuation, according to a poll of attendees in a session on dealing with the IRS.

Consolidation is “running rampant” in the auto dealer industry in the wake of Warren Buffett’s purchase of Van Tuhl, the largest privately owned U.S. auto dealership group.

The IRS still says “no” to tax affecting in valuations, and the agency is looking for a test case to bring to court. But, according to a great deal of research, shareholder taxes definitely affect value.

At the conference, the AICPA honored four individuals: Hubert Klein (EisnerAmper LLP) as the Forensic and Litigation Services Volunteer of the Year; Jason MacMorran (P&N Consulting), Business Valuation Volunteer of the Year; Sheri Schultz (Fiske & Co.), ABV Champion of the Year; and Elizabeth Woodward (Dean Dorton Allen Ford), CFF Champion of the Year.

For more takeaways from the AICPA FVS conference, see BVWire (free registration required).

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