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News and Information

Valuation and Business Resources

News And Information

BVI Welcomes Brantley DeWitt

Business Valuation, Inc.  is pleased to announce the appointment of Brantley DeWitt as an analyst. Brantley joins the company with a strong financial academic background and extensive industry experience, ready to bring his analytical expertise to BVI’s growing team. Brantley DeWitt received his bachelor of science in business administration from Auburn University, majoring in finance […]

Summer Interns Introduction

We are excited to introduce our summer interns at Business Valuation, Inc., and our sister company, Heritage Capital Group. This program provides invaluable experience, immersing our interns in real-world financial analysis and business valuation projects. Throughout their time with us, they will gain hands-on experience, working closely with seasoned professionals eager to share their knowledge […]

BVI 2024 Q2 Newsletter: A Resource for Legal Professionals, Wealth Advisors, and Business Owners

As a legal professional, wealth advisor, or business owner, you understand the importance of accurate business valuations. Staying informed about valuation strategies and industry developments can significantly enhance your expertise and provide valuable insights for your clients and business’s needs. We are excited to introduce you to our latest BVI newsletter. This publication covers various […]

How to Work with an Expert Witness Webinar

This training session equips legal practitioners with insights and practical strategies to navigate the complexities of engaging and leveraging expert witnesses effectively. From selecting the most suitable expert to maximizing their contributions in trial proceedings, this webinar provides a roadmap for fostering productive partnerships, enhancing case outcomes, and upholding professional standards.

Estimating the Synergistic Value in Mergers and Acquisitions

In the business world, mergers and acquisitions (M&A) play a pivotal role in shaping the corporate landscape. These strategic moves aim to create value, enhance competitiveness, and achieve various financial and operational goals. One of the key drivers behind M&A transactions is the pursuit of synergistic value. Estimating and realizing this value is crucial for […]

Melissa Lockhart Appointed to the Board of Changing Homelessness

Business Valuation, Inc., a prominent valuation firm specializing in comprehensive business valuation services, litigation support, and advisory services, proudly announces that Melissa Lockhart, director of valuations and litigation support at BVI, has been appointed to the esteemed board of Changing Homelessness. As a business valuation expert and CPA, Melissa brings a wealth of experience and […]

Season Greetings – 2023

  Warmest Holiday Greetings From Business Valuation, Inc. As the year draws to a close, we reflect on the meaningful partnerships that have shaped our journey. Your trust and collaboration have been invaluable and your confidence in our services has driven us to excel and innovate. This festive season, we extend our sincerest gratitude and […]

Five Reasons a Business Acquisition Can Increase the Value of Your Business

Companies continually seek strategies to grow and enhance their value in the competitive business landscape. While organic growth has its merits, sometimes, the secret to an explosive uptick in value lies outside your organization. Enter the world of business acquisitions. Strategic takeovers can provide unparalleled advantages, amplifying a company’s worth and positioning it for even […]

Meet Our Intern: Cameron

MEET CAMERON FREEMAN Cameron is a finance major and economic researcher entering his third year at the University of North Florida. Born and raised in Jacksonville, Cameron takes pride in working and studying in this vibrant city. A DAY IN THE LIFE While Cameron holds the job title of an intern, he considers himself more […]

Meet Our Intern: Hannah

Meet Our Intern: Celebrating Talent and Growth at BVI Our interns are the heartbeat of our daily endeavors at Business Valuations Inc. Their passion and dedication add to our team and elevate it with unique skills, infectious enthusiasm, and fresh viewpoints. Today, we’re thrilled to shine a light on one such outstanding intern, Hannah Goldfield. […]

Publications

A Universal Valuation Model for Closely Held Businesses

by C. Donald Wiggins, D.B.A., ASA, CPA, CVA
Dilip D. Kare, Ph.D.
Jeff Madura, Ph.D.
Valuation

Excerpt

“…if the appraiser accepts four basic tenets, the only logical conclusion that can be reached is that there is only one valuation model and that all others are simply variations on a single theme with differing assumptions. These tenets are straightforward and should be non-controversial. They are: 1. Investors will only pay for future expected returns from an investment; 2. The return that investors are seeking is cash; 3. Money has time value; and 4. Investors are risk averse. Each of these assumptions is intuitively appealing and supported by widely accepted economic theory, empirical research, and common sense. This article presents the arguments in support of these tenets, the universal valuation model that results from them, and mathematical proofs of the model’s equality with other widely used valuation models.”

The Economic Impact of Taxes on S Corporation Values

by C. Donald Wiggins, D.B.A., ASA
S. Mark Hand, CPA
Laura L. Coogan
Business Valuation Review

Excerpt

“One of the most highly debated topics in business valuation is the treatment of income taxes in valuing S corporations. There are two extreme positions on this point. The first is to include no income taxes at all in S appraisals. The second is to fully tax the income stream of S corporations and, in effect, to treat them as C corporations. This article discusses the treatement of income taxes in the valuation of S corporations and recommends a treatment different from both of these approaches. It describes a methodology that takes into account the tax advantage of S corporations and demonstrates an economically appropriate and supportable tax effect.”

Revisiting Valuation of Real Estate Partial Interests: Recent Case Studies

by C. Donald Wiggins, D.B.A.
Sidney B. Rosenberg, Ph.D.
The Appraisal Journal

Excerpt

“Valuing partial interests, such as common tenancies, is one of the more difficult assignments in appraising property interests. There are usually few comparable sales, a myriad of complex issues revolving around the rights of the owner, and a likelihood of litigation. While the Tax Court generally supports substantial discounts, the Internal Revenue Service consistently maintains that the only allowable discount is the direct cost of partitioning the property. In this article, we cite three cases in which the appraiser discounted the value of the partial interest by using the time and costs of partitioning the property and the cost of marketing the interest.”

Intra-year Cash Flow Patterns: A Simple Solution for an Unnecessary Appraisal Error

by C. Donald Wiggins
B. Perry Woodside
Dilip D. Kare
The Journal of Real Estate Appraisal and Economics

Excerpt

“As they are commonly described in the literature and applied in practice, appraisal techniques have a built-in conceptual error. This error occurs because of the clearly unrealistic assumption that annual cash flows occur at the end of the respective years of a property’s or business’s life. This article discusses the problem as it relates to the various cash flow patterns encountered in income property and closely held business appraisals and develops a theoretically sound, simple adjustment to correct it.”

How to Estimate the Effect of a Stock Repurchase on Share Price

by Dilip D. Kare, Ph.D.
C. Don Wiggins, DBA
Management Accounting

Excerpt

“Before a company decides to repurchase any of its stock, financial decision-makers need to analyze possible effects on the stock’s price per share. If a company’s financial managers follow our practical, relatively simple, conceptually sound tool, they can estimate the minimum repurchase necessary to avoid a negative effect on share price.”

Matching Cash Flows and Discount Rates in Discounted Cash Flow Appraisals

by C. Donald Wiggins, D.B.A, ASA, CVA
Business Valuation Review

Excerpt

“There are many conceptual and practical problems inherent in valuing a closely held business using discounted cash flow (DCF). One of the most critical and basic decisions an appraiser has to make is to define the appropriate calculation of cash flow and match it with the appropriate discount rate. If this selection is not made properly, the entire appraisal is invalid, even if every other decision is made correctly. This article describes four choices the appraiser may use as the definition of cash flow, the appropriate discount rate that matches each definition, and the values that result from these choices.”

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