Business Valuation in a COVID-19 World—Cost of Capital, Growth Rates, and Uncertainties Jim Hitchner, Managing Member of Valuation Products and Services (VPS), unveiled the first of a series of two-hour webinars that targets business valuation and litigation support professionals seeking an intermediate level program. This is a review of the first webinar titled “Business Valuation in a COVID-19 World—Cost of Capital, Growth Rates, and Uncertainties”. This article summarizes the issues discussed during this first webinar. [su_pullquote align=”right”]Resources: Best Practices in Business Valuation—A Practical Approach to Advanced Issues and Applications [/su_pullquote] On October 29, 2020, Jim Hitchner, Managing Member of Valuation…
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Here’s How to Land Them What is an aspirational client? How can valuation professionals find and engage them? In this article, Rod Burkert shares his insight and experience finding aspirational clients. Aspirational clients. Who are they? What steps does it take to land them? Why are they important to our practice growth? When we started our practices, we were happy with the clients we got because we needed the cash flow to pay the bills. Being picky was not a luxury we could initially afford. But as time marched on, has your client base remained a hodge-podge or has it…
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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 much concern regarding big data the government collects and its impact on privacy, it’s becoming much more of a concern in the valuation world. Are these datasets assets? Some are valued in…
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In case you missed it, Z. Christopher Mercer, ASA, CFA, ABAR, founder and CEO of Mercer Capital, was the keynote speaker at the American Academy of Matrimonial Lawyers (AAML) and the American Institute of CPAs (AICPA) 2014 bi-annual joint conference this year. His presentation concerned The Five Really Big Valuation Issues. They included: 1.) discount rates, 2.) control premiums and minority interest discounts, 3.) adjustments to the income statement, 4.) the Guideline Public Company Method and the Guideline Transaction Method, and 5.) fundamental adjustments. The presentation also touched on marketability discounts. You can visit Mercer Capital at the link…
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According to Tax Court decisions Part 2 of this article examines the remaining eight most common mistakes made in valuation, based on U.S. Tax Court decisions. Court rulings may be right or wrong, but without taking sides, this article confirms the truism that experience is the best teacher. . [button color=”blue” link=”https://quickreadbuzz.com/2014/01/22/16-mistakes-avoid-valuations-part-1/” target=”_blank” font=”arial” align=”left”]Read Part 1[/button]
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According to Tax Court decisions Part 1 of this article examines eight of the 16 most common mistakes made in business valuation reports according to U.S. Tax Court decisions. Business valuation textbooks, training manuals, and conference presentations may do a good job of teaching the right ways to conduct valuations. But in some respects, the most authoritative teacher of what is right and, just as importantly, what is wrong is the decision of the court in a dispute over the value of a privately held business or shares thereof.
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Increased Scrutiny for ESOP Fiduciaries This article presents a case for higher scrutiny for ESOPs as well as their fiduciaries. By juxtaposing protocol with proverbs from Aesop’s fables, valuable lessons are learned for business and life.
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Understanding this critical element in a buy-sell agreement Traditionally, business appraisers retained for buy-sell agreements are bound to perform their services within the specific value structure of the contract. When the valuation process is involved in such agreements, it’s essential for estate planners to understand the defining valuation elements involved, particularly the level of value.
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Why Estate Planners Need to Understand This Critical Valuation Element of a Buy Sell Agreement All businesses with more than one shareholder should have a current, well-written buy-sell agreement, asserts Mercer Capital. And for clients with valuation processes as part of their agreements, it is critical to understand “levels of value”: Strategic Control Value, Financial Control Value, Marketable Minority Value, and Nonmarkettable Minority Value. Here’s more:
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Investors Looked Favorably Upon Insurance Underwriters in 2012: The Industry Index Did Better than the S&P. Will Momentum Continue? Mercer Capital provides the insurance industry with corporate valuation, financial reporting, transaction advisory, and related services. Download Mercer’s Fourth Quarter 2012 summary here. More: Investors looked favorably upon insurance underwriters in 2012, driving the SNL U.S. Insurance Underwriter Index to an annual return of 17.7%, which slightly edged the S&P 500 (up 16.0% for the year). The leading sectors for 2012 were Title Insurers (+67%) and Multiline Underwriters (+41%). Stocks of insurance brokers were also up for the year (+11.5%)…
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There Are Different Standards. They Have Different Places in Various Appraisals. Here’s Why. Jim Hitchner considers various responses to the query: “When valuing an operating company, is it necessary to mention USPAP in addition to SSVS 1 when talking about the standards adhered to?” Good question. There were lots of answers from various valuators in a recent discussion. Here’s Jim’s take on it all.