Valuation and Business Resources
As a legal professional who frequently handles cases where precise business valuations are essential, staying up-to-date on valuation strategies and industry trends can enhance your expertise and offer valuable insights to meet your clients’ needs. We are pleased to share our latest BVI newsletter, which explores various topics, including business valuation methods, industry developments, and […]
In today’s fast-paced business environment, staying competitive requires more than just offering a good product or service. It necessitates continuous improvement in operations to deliver maximum value to customers. One of the most effective tools for achieving this is value stream analysis. This method provides a comprehensive examination and optimization of the activities that […]
Sarah Miller is the newest addition to our team as a marketing intern. This internship offers an exceptional opportunity for Sarah to immerse herself in the practical aspects of real-world data analysis and dynamic marketing projects. Throughout her time with us, she will not only gain invaluable, hands-on experience but will also have the chance […]
Selling your business is a significant milestone that requires careful planning and strategic actions to maximize its value. However, even if you’re not ready to sell right now, implementing these steps can significantly benefit your company and you as a business owner. Focusing on key areas such as management, strategic planning, and financial transparency will […]
In the ever-changing tides of the global economy, businesses face a constant barrage of challenges, from market downturns to geopolitical tensions. Amidst these uncertainties, preserving business value becomes a paramount concern for owners and managers. While economic uncertainty can present formidable obstacles, it also offers opportunities for businesses to demonstrate their resilience and adaptability. Understanding […]
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 […]
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 […]
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 […]
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.
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 […]
“…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.”
“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.”
“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.”
“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.”
“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.”
“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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