How to Review a Report’s Valuation Methodology
This is part of a series on quality control for valuation engagements, which has emerged as the No. 1 concern at valuation firms and practices, according to BVR’s Benchmarking Survey. The article contains a checklist for an overall review of the income, market, asset, and excess earnings approaches.
Ideas for Solving Two Problems in the BV Profession
The business valuation profession needs to be more attuned to academic finance research, according to a letter to the editor of the ASA’s Business Valuation Review by Victor E. Jarosiewicz (Quid Valorem LLC), the chair of The Appraisal Foundation’s Business Valuation Resource Panel. He also has some ideas about attracting more young people to the profession by targeting colleges and universities. Feedback is wanted on the issues and his suggestions.
How Do Your Firm’s Benefits Stack Up?
“Flexibility” is the most important aspect of a benefits plan BV firms should be offering to employees, reveals a BVR survey. Also, a look at the levels of signing bonuses BV firms are doling out is presented.
Using Rule of Thumb Data to Uncover Cooked Books
In addition to using rule of thumb data to corroborate a value conclusion reached using other methods, the data are also helpful for validating historical financials—particularly for cash-intensive businesses. An example and some metrics for cash businesses are presented.
A Channel Analysis Is Key When Valuing a Fast-Food Restaurant
There has been a seismic shift in the operations of limited-service restaurants since the pandemic—and there’s no sign of reverting. Channels of revenue have been upended. Therefore, an analysis along these lines is important when valuing these entities, advises an expert in this space.
Practice-Building Tips From the AICPA FVS Conference
The largest event of 2024 was the AICPA & CIMA Forensic and Valuation Services (FVS) Conference. While there were many excellent technical sessions, there was good attendance at sessions that related to the management of a valuation or forensics firm or practice—a topic that is gaining in importance in the profession. This article is a recap of those sessions.
BV News and Trends May 2024
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends May 2024
Business valuation news from a global perspective.
Volunteering to Help Grow the Business Valuation Profession
You have heard and read a lot recently about the staffing issues the business valuation profession faces. Where are the people who will lead and staff the profession in the future going to come from?
Auditors need to see more quantification of company-specific risk
One of the major audit review issues is company-specific risk (CSR), revealed a panel of Big Four leaders at the recent ASA Fair Value Conference in New York City last week.
Lingering high interest rates may trigger more goodwill impairments
Faced with elevated interest rates that show no signs of dropping, more companies will be forced to recognize goodwill impairments, according to a recent Wall Street Journal article.
Reminder: Take a short survey on college recruiting
Has your firm reached out to colleges to recruit new hires?
Most professional liability claims triggered from transactions
According to Duncan Will (CAMICO), the average professional liability claim against business valuation experts is $101,000, compared with $141,000 for forensic accounting.
This Monday: The NYSSCPA BV conference in New York City
One of our favorite events is the annual New York State Society of CPAs Business Valuation and Litigation Services Conference, which will be in New York City on May 13 (full day).
Global BV News: V20 global valuation conference is in Brazil this year
Last year’s inaugural V20 Summit and Conference in India was a great success, and this year’s event will be in Sao Paolo, Brazil, September 30 to October 2.
BV movers . . .
Several appointments to the standards setting boards at the International Valuation Standards Council.
CPE events
A Saga About S Corporation Tax Affecting: It’s a Thriller! (A BVR Workshop). May 8, 10:00 a.m.-1:15 p.m. PT/1:00 p.m.-4:15 p.m. ET. Featuring: L. Paul Hood Jr., The University of Toledo Foundation. CPE credits: 3.5.
Court opts not to split the difference in disparate valuations
Often, courts take the middle ground when faced with two disparate valuations, but, in an Ohio divorce case, the court did not do that.
Bias in Valuations
A lot has been written and said recently about bias in valuations. Judges are commenting on it more frequently, and others within the BV profession are noticing and commenting on it. A 44-year BV veteran weighs in.
Medical Transcription
This industry comprises establishments primarily engaged in one or more of the following: (1) letter or resume writing; (2) document editing or proofreading; (3) typing, word processing, or desktop publishing; and (4) stenographic (except court reporting or stenotype recording), transcription, and other secretarial services.
Medical Spas
This U.S. industry comprises establishments primarily engaged in providing personal care services (except hair, nail, facial, nonpermanent makeup, or non-medical diet and weight reducing services).
Medical Practices (Physicians)
This U.S. industry comprises establishments of health practitioners having the degree of M.D. (Doctor of medicine) or D.O. (Doctor of osteopathy) primarily engaged in the independent practice of general or specialized medicine (except psychiatry or psychoanalysis) or surgery. These practitioners operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers.
Fitness Centers
This industry comprises establishments primarily engaged in operating fitness and recreational sports facilities featuring exercise and other active physical fitness conditioning or recreational sports activities, such as swimming, skating, or racquet sports.
What to know from the ASA Fair Value Conference
It was another great turnout for the ASA Fair Value Conference in New York City last week.