Key Personnel Dependence in Sell-Side Business Valuation This article examines one of the primary issues that CVAs encounter when advising clients who are preparing to sell. By identifying challenges early in the valuation process, CVAs can better educate sellers on weak points in their business and prepare them for potential poor reception that they may face from prospective buyers. Introduction Business owners preparing to sell often underestimate the risks that prospective buyers perceive in their companies. This misalignment stems from two primary factors: an owner’s intimate familiarity with firm operations and the buyer’s lack of direct involvement or institutional knowledge.…
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Issues and Caveats (Part V of V) This final of a five-article series discusses the application of the unit valuation principle. This installment describes many of the application issues and caveats related to the use of the unit principle to value the unit of taxable property. Read Part I here. Read Part II here. Read Part III here. Read Part IV here. Introduction This is the fifth installment of a five-part series related to the application of the unit valuation principle for property tax compliance, administration, and controversy purposes. Previous installments of the series summarized what analysts need to know about the…
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What Valuation Analysts Can Do on Day One Use the new =COPILOT() formula and super charge your productivity in Excel. The Problem with Excel (and Why This Matters Now) If you work in business valuation or consulting, Excel is still your daily driver. We use it for everything; normalizing financial statements, running DCF models, cleaning client exports, and building rolling KPI dashboards. But as powerful as Excel is, the bottleneck has always been formulas. Even seasoned analysts can spend too much time Googling “Excel formula to calculate CAGR,” or untangling nested IFERROR statements. For consultants who bill by the hour—or…
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Valuation Procedures This fourth of a five-article series discusses the application of the unit valuation principle. This installment summarizes the generally accepted unit valuation procedures. But first, this discussion describes the generally accepted summation valuation approaches and methods as a comparison to the unit valuation approaches and methods. Read Part I here. Read Part II here. Read Part III here. Introduction This is the fourth installment of a five-part series regarding the development of unit principle valuations for property tax compliance, administration, and controversy purposes. Previous installments described when and why to develop a unit principle valuation—instead of a summation principle…
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Understanding Wine Businesses This article is designed as a primer for valuation professionals, giving you the foundational knowledge of wine industry terms and business structures you need to navigate this highly specialized field. By building this knowledge, you will be better prepared to ask the right questions, interpret key details, and deliver valuations that truly reflect the complexities and risks behind a wine business. Have you ever stood in the wine aisle staring at a label and thought, “I have no idea what any of this means”? What exactly does Gran Reserva mean? What is a blended wine? Why do…
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Approaches and Methods This third of a five-article installment discusses the application of the unit valuation principle. The discussion continues with a summary of the generally accepted unit valuation approaches, methods, and procedures. Read Part I here. Read Part II here. Introduction This installment is part three of a five-article series related to the unit valuation principle for ad valorem property tax purposes. Part I summarized what analysts need to know about the application fundamentals related to the unit principle valuation of complex, utility-type properties for property tax compliance, administration, and controversy purposes. Part II explained when it was appropriate…
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Excel and Position Yourself as the Expert There is an important difference between a service provider and an expert. In this article, Rod Burkert discusses why the differentiation is important and how to position yourself to be an expert. When it comes to the work you do, are you a service provider or an expert? Have you thought about the differences? Do you realize there are differences? Our BVFLS industry/profession/world is changing: The number of appraisers (choices) is increasing The valuation mechanics are more intricate The businesses we value are more complex The audience of leads, prospects, clients, and referral…
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Comparing Today’s Most Popular AI Chatbots Compare the results of the top AI chatbot models. In the past few years, AI chatbots have gone from a niche experiment to everyday tools powering work, creativity, and conversation. But with so many options—ChatGPT, Claude, Gemini, Copilot, and more—how do you know which one is right for you? In this video, we will put the most popular AI chatbots head-to-head, using the same prompt to see what kind of results we get. Now it is your turn to test your favorite prompt you use on a daily basis in your business with each…
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When to Apply This second of a five-article installment discusses the application of the unit valuation principle. Guidance is provided for when to apply the unit of valuation principle. Read Part I here. Introduction This discussion is the second installment of a five-part series related to unit principle valuations prepared for property tax compliance, administration, and controversy purposes. As was introduced in the first installment, the unit principle is often applied to collectively value a large assemblage (or a unit) of taxpayer property. This principle is typically applied to value complex, utility-type property that is physically, functionally, and economically integrated.…
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Legal Cases and Statutory Factors Used to Assess the Reasonableness of Compensation U.S. courts have established multiple factors and guidelines to assess reasonableness in compensation. This article reviews the factors and statutory criteria used to assess the reasonableness of compensation. Determining reasonable compensation for shareholder employees in closely held companies remains a key concern for businesses, valuation professionals, and forensic accountants. U.S. courts, particularly the Tax Court, have established multiple factors and guidelines to assess reasonableness in compensation, most notably detailed in the cases of Mayson Manufacturing Co. v. Commissioner (1949) and Elliotts, Inc. v. Commissioner (1984). The 6th Circuit…