A Balance of Valuation and Litigation Work; Secrets to Enhanced Productivity Marcie Bour, Founder and President of the Florida Business Valuation Group, offers tips and strategies on time management, favorite appraisal tools, marketing strategies, the benefits of client diversification, and the value of networking and seeking out mentors.
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The U.S. Must Cut $800 or $900 billion From Our Annual Government Spending to Maintain Mid-term Economic Solvency. And That’s Just the Beginning. Flooding the system with trillions of dollars and deficits has bought the U.S. economic stagnation, writes Rob Slee in an August 20, 2012 post at MidasNation. “What a lost opportunity. One thing we learned in MidasNation over the past few years is that when owners ignore the exponentially changing market and put their heads even deeper in the sand, only bad things result. Further, incremental actions will not change the equation for the better either.…
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Cost Approach is Best Used Simply to Allocate Value Under the Income Approach, Contends Mark Dietrich Mark Dietrich is concerned that a recent presentation at the NACVA annual conference may have misrepresented the views he expressed with a number of other authors in a paper published in Hospitals and Health Systems RX that was titled Assessing Intangible Value in a Physician Practice Acquisition. He cuts to the chase on his blog:
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In 2009 Duff & Phelps and the Financial Executives Research Foundation (FERF) first published the results of their comprehensive Goodwill Impairment Study. The 2009 Study examined U.S. publicly-traded companies’ recognition of goodwill impairment at the height of the financial crisis (the end of 2008 and the beginning of 2009), and featured a comparative analysis of the goodwill impairments for over 5,000 companies (by industry), as well as the findings of a survey of FEI members.
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The Richest and Most Comprehensive Comparables: IBA Data, 24/7. Log On Today. Business valuation has often been called an art, not a science. Revenue multiples are one key method; another is the use of comparables. Many valuators use both. KeyValueData offers NACVA members access to the IBA comparables, which are the richest and most comprehensive set of comparable available in the valuation world. Here’s an overview of the why comparables help—and what you’ll find in the IBA data set.
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Accounting for Nuts: Blame a misalignment of incentives for the scandal at Diamond Foods. The Wall Street Journal’s Holman Jenkins opines: “Business people talk about “alignment of incentives.” The lesson here may concern a peculiar misalignment of incentives.” He explains: Here’s the executive summary: Diamond was a cooperative owned by California walnut growers until it became a publicly traded company owned by shareholders in 2005. Lately reporters and a shortseller-connected analyst have been poking around a $60 million payment the company made to growers in September 2011, which some growers apparently understood to be a “topping up” payment because…
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The Exit Planning Institute Opens Northeast Ohio Chapter The Exit Planning Institute (EPI), NACVA’s Exit Planning partner and issuer of the Certified Exit Planning Advisor (CEPA) credential, has opened a new chapter that will be serving the Cleveland and Akron region in Northeast Ohio. The chapter president will be Christopher M. Snider, a partner at Aspire Management in Cleveland. Christopher M. Snider, CEPA and Exit Planning Institute Northeast Ohio Chapter President The chapter currently has approximately 30 members. Its mission is to build collaboration among professional advisors in order to promote common business interests, develop educational events for business owners and…
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Alphabet Soup AccountingToday‘s Danielle Lee writes that “A growing roster of professional designations fosters credential-mania,” among CPAs, and devotes an article to surveying some of the most popular credentials today, including those from NACVA: The CVA. The National Association of Certified Valuators and Analysts’ CVA credential does require a CPA license, along with coursework and an exam. Established in 1991, the credential is now held by more than 4,000 designees. The CVA is “extra important because the profession – valuating businesses – is in a constant state of change,” said Mark Morris, chair of NACVA’s valuation credentialing board. “New theories…
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House lawmakers passed a bill today to overhaul the U.S. patent system for the first time in nearly 60 years, Nathan Koppel notes on the Wall Street Journal Law Blog: The House passed the America Invents Act on a 407 to 117 vote, WSJ reports. The bill would change how the U.S. grants patents and award them to the party which is “first to file” an invention instead of the “first to invent” it. The change would bring the U.S. in line with other countries, according to WSJ. The Senate passed similar legislation in March on a 95-to-5 vote. (Click here to see…
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David Wanetick, Managing Director at IncreMental Advantage, LLC, a valuation firm with expertise in valuing intangible assets and emerging technologies, based in Princeton, NJ, opines at The Business Insider: Valuing a patent is complex and imperfect. Below we’ll go into some detail surrounding the methods used to determine a patent’s value. Each is applied under different circumstances, and impacted by many factors. Some of these factors can be measured and quantified, while others are intangible and require expert judgment in order to attain a reasonably accurate estimation of value.
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More Feedback: Editor: I read the May 2011 QuickRead – “Tips for Valuators” concerning stub years. I have run into this issue several times and I have seen it misapplied many times and I am glad you wrote about the topic. I noticed two points in the article that I believe need further clarification. The first thing that I noticed in the article is that the PV factors need to be modified as well if you are discounting them using a stub year. The present value factors in the article are straight factors calculated using a mid-year discounting convention that…
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Calculation Engagement vs Valuation Engagement. In April, QuickRead featured some analysis of In Re: Marriage of Hagar in our Case Law—State section. At issue in Hagar was the difference between a Calculation Engagement and a Valuation Engagement. The Calculation Engagement the husband in the case presented was deemed unsuitable by a judge, in this particular case, because it the valuator admittedly didn’t “use judgment.” NACVA member Charlotte Reith, CPA, CVA, CFF, of The Reith Company in Pasadena, CA wrote in to say she thought our analysis “is giving calculation engagements a bad name and is misleading. A rule of thumb valuation [used in Hagar] is not a calculation of…
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Have you had a chance to check out the Guard Series™ insurance policies? Since claims against BV practices and properly credentialed professionals have historically been quite rare, these policies are deeply discounted. NACVA and Primus Assurance Group (PAG) announced the policies’ availability last fall, and since then PAG has built out its web site with lots of detail: Providing Professional Peace of Mind Professional Errors and Omissions Liability Insurance is critical for valuation analysts and litigation support professionals in today’s litigious environment. That is why the National Association of Certified Valuation Analysts (NACVA) and Primus Assurance have tailored an…
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LinkedIn Features Booming CVA/AVA Activity Have you visited LinkedIn lately? The NACVA AVA/CVA Certification group as of this writing has 935 members. Follow the link and join in the conversation! This year is NACVA’s 20th Anniversary. What milestones do you remember being a part of? QuickRead’s Conversations with the Masters staff is preparing for an interview with Shannon Pratt. Do you have questions you suggest we pose him? Other LinkedIn conversations have ranged far and wide, with Association folks sharing information and offering tips on everything from how best to use the ValuSource Report Writer, the proper applicability of Benford’s…