Is this recession enough reason to devalue assets in divorce? The wife’s expert, Gary Trugman, obviously agrees with the majority. “The truth is, we did consider the economic downturn, because we used dual valuation dates,” he tells the BVWire™. The husband also lost on his expert’s claim that 50% of the restaurant’s value was personal goodwill. “As I said to the judge, ‘Your Honor, when was the last time you went to a restaurant if the food was lousy, the service was terrible, but the owner was a really nice guy?’ I think that got my point across, that there was very little personal goodwill,” Trugman says. “I used Pratt’s Stats data for restaurants to demonstrate what portion of the purchase price was protected by a covenant not to compete, and used that percentage to allocate some personal goodwill—but it was a relatively small figure.” OECD on transfer pricing: look for updated guidelines in 2011 The Organisation for Economic Co-operation and Development (OECD), which helps member nations strive for better global standards (and which publishes Transfer Pricing Guidelines) will begin to update their transfer pricing guidelines in 2011. OECD’s Working Party No.6 will examine the legal and economic ownership and taxation of intangibles in addition to valuation methods. “The fact that the OECD is ‘attacking’ the issue of intangible property taxation means that significant time will be spent determining the proper way to value intangibles,” says David R. Jarczyk of ktMine. See Jarczyk and Urquidi’s related article, “Increased IRS Transfer Pricing Regulation Increases Opportunities for Appraisers” in the September 2009 Business Valuation Update™. Y/S Advisor: a new advisory service for appraisers from Yeanoplos and Seigneur Congratulations to Kevin Yeanoplos and Ron Seigneur who announce the launch of Y/S Advisory today! Both Kevin and Ron will continue to offer BV services to clients, but their mutual interest in professional education and training led them to form this new venture. “We want business valuation firms to grow and thrive,” said Kevin.
Click here for a full outline of types of services, or contact Randy Cochran, SVP, at randyc@bvresources.com to learn more about the Y/S Help Desk Program Parr and Smith continue to educate on IP valuation The 2010 Cumulative Supplement to Russell Parr and Gordon Smith’s seminal book, Intellectual Property: Valuation, Exploitation, and Infringement Damages is now available. The 218-page update “reexamines the ever-changing role of intellectual property in business, among institutions, and in the world.” The authors added 13 new chapters containing valuable discussion, practical tools, analytical models, methodologies, and royalty rate data. The supplement is in two parts: Part I: Valuation
Part II: Licensing
For a more detailed table of contents click here. And, those interested in these topics can hear Parr and other international experts at the BVR/Morningstar Best Practices in Valuing Intellectual Property Conferencehttp://www.bvresources.com/defaulttextonly.asp?f=IP10 in Chicago September 15-16. Trends in Control Premiums: Key Information for BV Experts Knowing how to recognize and quantify control has been an ongoing debate for appraisers. To help ease the debate, the Appraisal Foundation’s third Working Group and the American Society of Appraisers (ASA) are developing guidelines regarding the assessment, measurement and application of control premiums. “There’s a whole lot more complexity to think about than most folks realize,” says Eric Nath, who’s helping to lead the ASA effort. To update appraisers, Brad Pursel, Mark Edwards and Andrew Fargason will examine the issues in “Control Premiums: Applications and Analysis,” a BVR teleconference on Thursday, April 29. The three valuation experts will discuss how to recognize and quantify a control premium; the best practices used by speakers, national firms, the big 4 and others; measurement considerations when determining and analyzing control premiums; and alternatives to direct application of control premium data. To register or find out more on this conference and how to receive 2 CPE credits, click here. The Butler Pinkerton Calculator™: Another Tool in Your Toolbox In a recent free BVR teleconference, Peter Butler and Gary Trugman discussed the proper use of the Butler Pinkerton Calculator (BPC). BPC can be used to quantify company-specific risk premiums (CSRPs) and total costs of equity (TCOEs), particularly as “a great way to rebut what someone is doing or for a sanity check,” said Trugman. “When used in conjunction with other tools, appraisers will be better able to support and defend their discount rate conclusions for their subject company,” Butler agreed. For those who were unable to attend the teleconference, it is available by clicking here. Over 90 free ways to stay current in business valuation BVR provides over 90 free articles, papers and standards written by top experts in the field of business valuation. The top ten downloads last month were:
“How to Use Transactional Databases for M&A, 2010 Update” was just added to the list of free downloads. The updated article provides assistance on using transactional databases and gives information about four transactional databases: Pratt’s Stats, Public Stats, BIZCOMPS, and the Factset Mergerstat/BVR Control Premium Study.
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