The Art and Science Most businesses have special characteristics that affect its value. Some are endemic to the industry and some relate to the personal nature of those managing the business. Wealth management businesses have both characteristics. Here are some considerations that go into determining the valuation. Most businesses have special characteristics that affect its value. Some are endemic to the i ...

To Attract or Retain Key Employees To both attract and retain key employees, many private companies have added stock-based compensation grants to their portfolio of employee compensation arrangements. An important component of any private company stock-based compensation arrangement is the value of the private company stock. Therefore, private company clients expect valuation analysts to be at least general ...

Asset Values (Part III of III) This is the third of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty r ...

Get New Work at Fees I Can Live With When it comes to getting new work, one of the required steps is writing what amounts to a combined proposal/engagement letter. It’s more of a proposal if you’re assuming what the prospect wants; it’s more of an engagement letter if you spend time finding out what the prospect needs. But semantics aside, preparing these letters is a lot of work. Given that, what is your p ...

Asset Values (Part II of III) This is the second of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty r ...

Nine Steps to Engage Your Audience Hinge’s latest research on high-growth accounting and financial services firms makes the case that your firm should consider adding educational webinars into your marketing mix. Hinge’s latest research on high-growth accounting and financial services firms makes the case that your firm should consider adding educational webinars into your marketing mix. Why? Well only 34.9 ...

Asset Values (Part I of III) This is a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned b ...

For 2020 and Beyond Merriam-Webster dictionary defines blockchain as a digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network. In this article, the author predicts blockchain trends and its impacts of the accounting profession. With a new year comes changes across multiple facets ...

Without An Elephant One question: Would you like to learn a technique that might make the problem-solving process work more efficiently and perhaps, just perhaps, produce better results? In this article, Nancy Yeend presents the W-I-N method. Of course, you know how to solve problems—that is what you do for a living. One question: Would you like to learn a technique that might make the problem-solving proce ...

In the Formation of an ESOP Mr. Robert Reilly, in a two-part January 2020 QuickRead article, as published by NACVA, provides a detailed and learned discussion regarding the role a valuation analyst might play in the early stages of the formation of an Employee Stock Ownership Plan (ESOP). This paper is not intended to be, in any way, a critique of Mr. Reilly’s presentation, but rather an appendix highlighti ...

Robert Reilly Shares His Thoughts on Impressions Should a valuation analyst accept an ESOP valuation engagement? That is the question raised by Michael McKean in his article written in response to the recent QuickRead article series by Robert Reilly. In this article, Mr. Reilly shares his thoughts on the subject matter. I am old enough to remember the early television show, The Original Amateur Hour. I star ...

In an ESOP Formation Financial Feasibility Analysis (Part II of II) This is the second of two-part article that discusses ESOPs. In this part, the author focuses on quality of earnings, liquidity, and plan design analyses. Owners of a private company who are looking for an exit strategy may consider the sale of all (or part) of the company to an employee stock ownership plan (ESOP). Such a strategy may be p ...

About Your BVFLS Practice? There are three ways to deliver professional services. The benefits and detriments of each are discussed in this article. The author also shares his opinion regarding what model(s) BVFLS practitioners should adopt. We’re supposed to be smart, sophisticated, experienced business appraisers who deliver insights that assess value. Why, then, do most of us operate with a one-dimension ...

In an ESOP Formation Financial Feasibility Analysis (Part I of II) This two-part article discusses ESOPs. Owners of a private company who are looking for an exit strategy may consider the sale of all (or part) of the company to an employee stock ownership plan (ESOP). Such a strategy may be particularly attractive to baby boomer private company owners who are seeking retirement and liquidity and who would p ...

Revising Your Firm's Brand As a new decade begins, you may consider the state of your firm’s overall brand and if there are any needed changes. When you conduct such an exercise, one of the first elements to consider revising is your firm’s positioning statement. In this article, we will review the five steps to writing an effective positioning statement which can be a strong foundation for your brand. As a ...

Theory into Practice In our literature and at professional conferences, we often discuss the theoretical aspects of our work. For lost profits this includes discussions on the best method for valuing lost profits (before and after, yard stick, but for) or the optimal discount method (ex ante, ex post, or hybrid). Occasionally, these become academic debates with little impact on our “real life” work. This ye ...

Best Practices: Thought Leadership in Valuation, Damages, and Transfer Price Analysis This fall, Robert F. Reilly and Robert P. Schweihs published Best Practices: Thought Leadership in Valuation, Damages, and Transfer Price Analysis. The book celebrates the 50th anniversary of Willamette Management Associates and is intended to present thought leadership. The topics selected for inclusion are topics that th ...

The Cost of Equity Capital (Part II of II) This is the second of a two-part series article focused on issues that arise estimating the cost of equity capital. In most forensic-related valuation analyses, one procedure that affects most valuations is the measurement of the present value discount rate. This discount rate analysis may affect the forensic-related valuation of private companies, business ownersh ...

Not For Your DLOM, For Your Proposal Have you read any of the literature addressing value pricing? Ron Baker is the authority in this filed. In this article, Rod Burkert introduces the subject of pricing options, a menu of services and fee choices prospects can consider, so as to remove or mitigate price as an objection to hiring. Have you read any of the literature addressing value pricing? Ron Baker is th ...

The Cost of Equity Capital (Part I of II) This is the first of a two-part series article focused on issues that arise estimating the cost of equity capital. In most forensic-related valuation analyses, one procedure that affects most valuations is the measurement of the present value discount rate. This discount rate analysis may affect the forensic-related valuation of private companies, business ownership ...