You Are Here: Home » Valuation/Appraisal (Page 10)

The National Association of Certified Valuators and Analysts® (NACVA®) has been educating and credentialing CPAs and other financial advisors to support business owners in understanding the value of their business for the past quarter century. NACVA’s  global Certified Valuation Analyst® (CVA®) designation is the most widely recognized valuation credential and the only business valuation credential accredited by the National Commission for Certifying Agencies® (NCCA®).

Discounted Cash Flow Valuations (DCF): Academic Exercise, Sales Pitch or Investor Tool?

Discounted Cash Flow (DCF) valuation is simple at its core, yet often intimidates many says Aswath Damodaran, Professor of Finance at the Stern School of Business at New York University.  You need one only theory to value companies that is based on the equation that the value of an asset is the value of the expected cash flows over its lifetime, adjusted for risk and the time value of money. To learn how to ...

Read more

The Techniques and Methodologies Available

and the Process for the Valuation of a Closely Held Business (Part 1 of 2) Assessing shareholder value for either publicly held or privately held companies are two sides of the same coin. The U.S. capital markets have undergone significant changes in the past several years. This development in turn has had an impact on how these two types of companies are valued. Valuing public companies can be rather strai ...

Read more

Minimizing goodwill impairment differences globally: No fast or simple solution

Particular challenges can arise in goodwill impairment valuation and accounting when a company acquires a business located in another country.   When goodwill accounting standards are strictly applied, under U.S. GAAP or IFRS, the differences between write-offs taken in one country versus another should be minimal. This article delves into some of the notable differences in goodwill impairment conclusions w ...

Read more

Development and Application of Company Management-Prepared Projections in a Dissenting Shareholder Appraisal Action Context

The proper usage of company management-prepared projections when applying the Income Approach—Discounted Cash Flow Method—is an ongoing issue for any valuation analyst, especially as it relates to shareholder appraisal rights actions. The Delaware Chancery Court regularly provides guidance as to the proper usage of management projections when applying the Discounted Cash Flow Method within a dissenting shar ...

Read more

Stakes are High in Business Valuations for Estate and Gift Tax Reporting

Thoughts from Experienced Litigation and Business Valuation Professionals Entering the Industry In this article, seasoned BV and litigation support professionals John DelGrego and Heidi Walker share why litigation can be invaluable to a BV professional. The co-authors also expound on the professional perils and high expectations placed by the Tax Court on expert witnesses. Expert witnesses must be objective ...

Read more

Buy-Sell Agreement

A Drop-Dead Plan for the Unprepared In this article, Edward Mendlowitz shares his views regarding the importance of having a buy-sell agreement. He proposes a “drop-dead plan” or method that, while imperfect, addresses how owners can arrive at an initial value that does not necessarily require a Conclusion of Value, especially if the owners are not related. Significantly, Mendlowitz stresses the importance ...

Read more

Selected Accounting Standards Update

Evolving Accounting Standards for CPAs Wiley author Joanne Flood reviews three significant Accounting Standards Updates (ASU).  First, she reviews ASU 2014–08, issued in April 2014. This ASU focuses on Reporting [for] Discontinued Operations.  This ASU changes the criteria for determining which disposals can be presented as discontinued operations.  In the remaining portion of the article, she summarizes ch ...

Read more

How to Reduce Your Liability Risk in Business Valuations

Business valuation (BV) liability claims are not as frequent compared to other litigation risks faced by practitioners. On the other hand, there are BV-related liability claims that exist, especially in cases where a valuation report was used to guide financial decisions by businesses, lending services, regulatory agencies, and others, according to Frank Vinluan, in the January 21 issue of FVS News.   ...

Read more

Estate of Natale B. Giustina, et al., v. Commissioner

Ninth Circuit Court of Appeals Reverses U.S. Tax Court On December 5, 2014, the Ninth Circuit Court of Appeals “reversed and remanded for recalculation of value” a Tax Court Memo decision in Estate of Natale B. Giustina, Deceased, v. Commissioner (No. 12-71747). The case involves the valuation of a 41.128 percent partnership interest in Giustina Land and Timber Company Limited Partnership and raises importa ...

Read more

Difficulty with Applying the Contract Rate Approach to Chapter 11 Bankruptcy

A Case Study, Part 2 of 2 In this second part of the article, Dr. Allyn Needham examines post-Till cases from the northern and western districts of Texas, highlights the problems encountered using the Formula Approach, and tests whether the Contract Approach may have provided a better approach and reduced the incidence of litigation where a cramdown is proposed. Ultimately, Dr. Needham proposes that despite ...

Read more

Difficulty with Applying the Contract Rate Approach to Chapter 11 Bankruptcy

A Case Study, Part 1 of 2 In the Till decision, the U.S. Supreme Court selected the Formula Approach to provide a straightforward, familiar, and objective method for determining the cramdown interest rate to be paid on secured claims in Chapter 13 cases, minimizing the need for potentially costly additional evidentiary proceedings. Many bankruptcy courts have found this decision instructive and directive fo ...

Read more

The Fed is More Confident of U.S. Recovery

Federal Reserve officials have expressed growing optimism at the December meeting that the U.S. economy is steadily recovering.  As the price of oil continues to fall and with payrolls growing, there is a good possibility that 2015 will experience higher economic growth than currently forecast. However, the weakness of the global economy and the anemic response of foreign governments could weigh on domestic ...

Read more

Nevada Senate Bill 3501

Restrictions on Distributions and Impact on DLOM…Who Else Will Follow? In 2009 Nevada Senate Bill 350 was passed into law. This law authorized the creation of two new business entities: the Restricted LLC and Restricted LP. The bill also allowed for the conversion of existing entities into one of the above types. In this article, Eric J. Barr provides an overview of these two entities and raises questions r ...

Read more

Building the Global Valuation Standard

“Rome was not built in a day,” but efforts are underway to do it faster for international valuation standards. At the recent World Congress of Accountants, Sir David Tweedie, chair, International Valuation Standards Council, outlined the challenges facing the valuation profession when he stated and questioned the following: “The profession developed as secondary specialization by experts working in differen ...

Read more

U.S. v. Finely Hilliard, et al.

Fifth Circuit Affirms District Court and $83 Million in Unpaid Taxes and Interest Owed by Donees The Fifth Circuit recently affirmed the district court’s decision and the imposition of unpaid taxes and interest on donees of shares sold at less than fair market value to the company owed by relatives of the donor. As Joe Brophy explains, this case illustrates the pitfalls of deathbed planning involving asset ...

Read more

Most Valuable Company in the World Is…

  In a recent valuation, Apple has been crowned the most valuable company on the planet, and second place wasn’t even close. After its stock hit a record high recently, Apple was valued at $700 billion. That’s $300 billion more than the runner-up, Exxon Mobile. It’s hard to wrap your head around these kinds of numbers, but imagine the enormity that is Google. Even with that kind of influence, Google is ...

Read more

Business Valuation in Divorce Case Law Compendium

At some point in a business valuation analyst’s career, an attorney or pro se party will call asking for a business valuation and perhaps even to retain your services. A good starting point is Business Valuation in Divorce: Case Law Compendium, 2nd ed. This edition is 584 pages long and provides a comprehensive court case digest that emphasizes similarities and differences in the treatment of goodwill (prof ...

Read more

Taxpayer Loss

Lessons to be learned by Valuators from Cavallaro v. Commissioner Cavallaro v. Commissioner holds some valuable lessons for valuation experts. Following a tax-free merger of two companies owned between different family members, the children of the petitioners (and owners of one of the companies, pre-merger) received 81 percent of the stock in the merged entity. Differences arose between one set of accountan ...

Read more

Fair Value of Big Data

Five years ago, no one really knew what big data was and now, it seems it’s all anyone can talk about. Big data is the term used for information retailers, government agencies, and other organizations collect from the public that other entities might have a vested interest in purchasing because they produce ancillary products or services that could be marketed to the same individuals. While there has been m ...

Read more

©2019 NACVA and the Consultants' Training Institute • (800) 677-2009 • 5217 South State Street, Suite 400 Salt Lake City, UT USA 84107

event themes - theme rewards

Scroll to top
UA-49898941-1
lw