The draft of FinREC’s IP R&D practice aid is available.
The draft proposal from the FinREC Task Force on in process research and development was just posted on the AICPA website. Here’s BVR coverage of pre-release comments on the report from members of the Task Force, as reported at the ASA National BV Conference last month: Revised IP R&D Practice Aid to Go Beyond [...]
How do you value “synergy” in an impairment test?
“We actually try to figure out the cashflows from the competitive advantage,” said Mark Edwards (GT), speaking at the Hardball with Hitchner wrapup session at the AICPA National BV Conference this afternoon. But others try to deal with it by looking at the BVR/Mergerstat Control Premium Study and applying a control premium. ”I don’t particularly [...]
A billing hour target model
Here’s a model discussed at this morning’s Practice Management session at the AICPA. It recognizes that there are CPE, vacation and other obligations, so the expectation is a target of 1600 billable hours (35 hours a week). Then if some one bills 1600-1800 hours, they get 20% of what they bill in addition–and 25% [...]
More on Mike Crain’s analysis of the diminishing size premium
Mike Crain’s (Financial Valuation Group) done a lot of analysis that supports the idea that the size premium is disappearing. He discussed this again in the recent BVR webinar, The Diminishing Size Effect and Link to Liquidity Risk. “The empirical research finds that the size effect in listed stocks (listed meaning public company stocks listed [...]
Good example of BV firm branding
Decosimo CPAs sent BVR a great press release describing their leadership at next week’s 11th Annual Valuation of Hard-to-Value Securities and Portfolios Conference hosted by the Financial Research Associates (FRA) on June 28-29 in New York City. Decosimo’s Karl J. Jordan is chair of the event. Marshall Harvey, CPA.CFE, an assurance principal with Decosimo’s investment [...]
New blog on BV and appraisal review
Mercer Capital just launched a new blog: The Notebook: Featuring the latest thinking on business valuation and appraisal review by Paul Hood and Tim Lee.
IFRS/GAAP convergence: a profitable area for business appraisers
May 13th 2011 “was a momentous day for valuators” James Catty (Corporate Valuation Services Limited) told NACVA attendees in San Diego this week. That was the day FASB issued its 331 page document “Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs.” Now there [...]
Porter: Expert ‘disasters’ I have seen (and how to avoid them)
“Most lawyers will not take on your analysis directly,” John Porter (Baker Botts LLP, Houston) told VRT attendees in California last week. “Instead, they will nibble around the edges to find some ‘gotchyas’ to impeach your credibility.” And just how will they gnaw at your testimony? Porter, one of the most experienced trial and appellate [...]
Is it too late to cure the ‘disconnect’ between DOL and appraisers?
Not surprisingly, the new proposal from the Department of Labor (DOL) to make appraisers “fiduciaries” under ERISA (Sec. 3(21)) dominated the discussion on ESOP valuations at last week’s 25th annual meeting of the Valuation Roundtable of San Francisco in Orinda, CA. (For background, see BVWire #s 101-2 and 102-1.) “There is a disconnect between the [...]
Have the last six months changed the business valuation profession?
John Paglia (Pepperdine University), Robert Slee (Robertson & Foley), and the Graziadio School of Business and Management at Pepperdine University just published the results of their ongoing Pepperdine Private Capital Markets Project, a research survey pertaining to privately-held companies and the markets in which they raise capital. Of the 271 survey business appraiser participants, the majority expect [...]
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