BVR Logo December 1, 2021 | Issue #231-1

BVWire is your go-to source for the latest in the business valuation profession. Highlights for this week include:

BV pioneer and legend Shannon Pratt passes away

It is with deep sadness that we announce the passing of Shannon Pratt, who died over this past weekend at age 88. He contributed more to the development of the business valuation profession than any single individual. Armed with a vision, he published his first book in 1981 (Valuing a Business) and began the process of transforming a small group of untrained professionals into the true profession it is today. Along the way, Dr. Pratt would write many more books and articles, teach courses, and give hundreds of presentations—touching thousands with his wisdom as well as his humor and charm. Everyone in the business valuation profession owes him a great debt of gratitude.

Dr. Pratt was the founder of Business Valuation Resources, LLC (BVR), which continues to maintain his Pratt’s Stats database (now DealStats) along with providing other deal and market data, news and research, training, and publications. David Foster, BVR’s CEO, recalls: “I befriended Shannon first as a publisher, before I knew he was the leading voice of the young business valuation profession. At the time, though he was already known worldwide, he was new to our industry, but he took avid notes, listened and questioned carefully, and learned from all of us rapidly. He was always the first to share his start-up mistakes willingly, so we learned from him, too. When his health required that he sell BVR, he came back to our publishing community with generosity and kindness. He could have sold BVR elsewhere but felt strongly that he wanted to repay our early support—training his first hires, sharing war stories over martinis, and talking shop during endless doubles tennis matches. Shannon’s loyalty to this group of friends he made later in his life changed my life profoundly, and I remain forever thankful to him and to Millie and his family for trusting us.”

Of course, the tributes have started coming in from fellow practitioners. “His contribution to our profession was enormous,” says Jay E. Fishman (Financial Research Associates), who is on BVR’s advisory board. “I am happy we got to write, teach and hang out together.” Veteran valuer and BVR legal editor Jim Alerding (Alerding Consulting) agrees: “Shannon was no doubt the G.O.A.T. (greatest of all time) in our profession. He made the profession out of whole cloth. I first met him in 1991 when I was on a panel with him for an eight-hour program. He welcomed me to the group with open arms and he treated me with the greatest of respect and friendship the rest of his life. He seemed to always treat people with respect whether he knew you or not. He will be greatly missed. His contributions to the body of knowledge in business valuation are immeasurable.”

Ron Seigneur (Seigneur Gustafson LLP), who is also on BVR’s advisory board, adds: “What a legend our profession has lost with the passing of Dr. Shannon Pratt. Shannon was so kind and gracious to me in the early years when I got to know him as a friend and mentor, and he inspired me to take a deeper dive into business valuation as a profession. I hope we can all find ways to pay it forward to the next generation of valuation professionals who will continue to benefit from his many contributions.”

There will be many more words of tribute and remembrance, and we will share them in future issues.

Personal goodwill likely in martial estate in Wyoming divorce case

In Wyoming, personal goodwill is not part of the marital estate, but it’s likely that some was included in a recent case. The husband owned a business and valued it at $75,000, which was merely the appraised value of the firm’s assets (asset approach). The husband did not provide any testimony of a valuation expert at trial. The wife used an expert (a CPA and CVA) who used the capitalization of earnings approach to come up with a value of $308,000, which notably included all goodwill. Even though the husband argued that the goodwill was all personal goodwill, the court accepted the $308,000 valuation and an appellate court affirmed.

The case is Snyder v. Snyder, 2021 WY 115, and you can read a case analysis and the full opinion on the BVLaw platform.

New BV glossary’s title sets stage for more to come

The newly revised glossary of business valuation terms (see last issue’s coverage) also has a new title: International Valuation Glossary—Business Valuation. One reason for the new title was that the developers “wanted to set the stage for perhaps the publication of other international glossaries for other specialisms, such as real estate, where there is also a market need for consistently understood terminology,” says Muath Alkhalaf (TAQEEM, Saudi Arabia) in a video.

A working group made up of members of the American Society of Appraisers (ASA), Royal Institute of Chartered Surveyors (RICS), Saudi Authority for Accredited Valuers (TAQEEM), Canadian Institute of Chartered Business Valuators (CBV Institute), and the International Valuation Standards Council (IVSC) developed the revised glossary.

Trugman reveals the ‘easiest trap’ in a valuation engagement

BVWire has been getting a sneak peek at some of the revised chapters in the new, sixth edition of Understanding Business Valuation by Gary Trugman (Trugman Valuation). The book is known for its real-world examples and practical advice based on the author’s many years of experience. In one chapter, he reveals that the “easiest trap” to fall into in a valuation engagement is when the attorney asks the analyst for a ballpark opinion. “Next thing the analyst knows, the so-called ‘ballpark’ becomes an expert report without the analyst even realizing that it has been submitted to the other side in a litigation,” Trugman writes. Imagine yourself trying to explain to the court why you did a calculation of value when a full valuation engagement was called for.

What to do: To avoid this trap, the engagement letter and report must be crystal clear regarding what the valuation analyst will and will not do and what restrictions are placed on the use of the report, he advises.

Trugman’s book will be available in early 2022, and you can preorder if you click here. Note: If you are a subscriber to BVResearch Pro or BVR’s Digital Library, the book will be included with your subscription, so there is no need for you to preorder.

Vantage Point Advisors named M&A valuation firm of the year

The M&A Advisor named Vantage Point Advisors the 2021 “Valuation Firm of the Year” at its 20th annual M&A Advisor Awards Gala in New York City. In addition to Vantage Point, valuation firm award finalists were Generational Group, Objective Capital Partners, Prairie Capital Advisors Inc., Titus Alliance, and VRC/Valuation Research. For a full list of finalists in all categories, click here.

Vertical IQ industry research platform to add news from Lexis/Nexis

Behind-the-paywall industry news from Lexis/Nexis will be added to the Vertical IQ platform that provides industry research for business valuations. During a free webinar, Bobby Martin, the platform’s CEO, told attendees that a new partnership with Lexis/Nexis will add curated, hand-picked news from subscription products, such as industry trade magazines, to the Vertical IQ platform, thereby adding to the already substantial amount of industry insights the platform provides. This enhancement comes on the heels of recently added U.S. Sector Profiles, which showcase a macro-level look at the major segments of the economy. Martin also revealed that future enhancements include more graphical presentations of industry drivers. During the webinar, veteran valuation expert Jim Ewart, who is a Vertical IQ user, joined Martin for a walk-through of the platform. You can watch a replay of the free webinar if you click here.

TAF now has 32 podcasts on appraisal topics

The Appraisal Foundation (TAF) has a podcast series called “Appraiser Talk” that answers questions from every corner of the appraisal profession from consumers to appraisers and real estate to business valuation. Thirty-two podcast episodes are now available on TAF’s website. Bob Morrison (Rosenfield and Co. PLLC) did an episode that gives a quick overview of business valuation. Some episodes in the other disciplines are of interest as well. For example, one episode on personal property talks about who the IRS deems to be a qualified appraiser, which applies to BV as well.

AICPA recognizes several FVS professionals

The American Institute of CPAs recognized a number of professionals during its recent Forensic and Valuations Services (FVS) Conference in Las Vegas: Antonella Puca, Lynda Schwartz, and David Zweighaft were named Volunteers of the Year, while the Standing Ovation Program recognized Shivam Jadeja, Courtney Lee, Benjamin Kincaid, Jason Schellhaas, Matthew Krofchick, and Adam Hansberger for “exemplary personal achievement.”

ASA fair value virtual conference today, December 1

The American Society of Appraisers will hold its 2021 ASA Fair Value Virtual Conference on December 1 from 1:00 p.m. to 5:10 p.m. ET. Conference chair Ray Rath (Globalview Advisors) has put together an impressive program of topics and speakers: stock-based compensation (Amanda Miller, EY); SPACs (Harris Antoniades, Stout); discount rates for ASC 842 debt valuations (Vincent Covrig, Crowe LLP), an IVSC update (Mark Zyla, Zyla Valuation Advisors LLC); and an update from the company-specific risk premium task force (Roger Grabowski, Duff & Phelps). There will also be a FASB update. This is a virtual event with up to four hours of CPE credit.

Free webcast of IVSC technical boards update

The chairs of the technical boards of the International Valuation Standards Council (IVSC) recently shared updates on the latest and planned future activities of their respective boards. Updates included details of recent changes to the International Valuation Standards and areas of focus based on the outcomes of the recent Agenda Consultation. The webcast was on November 8, and a complimentary replay is now available if you click here.

iiBV updates on-demand global BV core courses

BVR and the International Institute of Business Valuers (iiBV) have completed the current updates of their core Advanced Business Valuation course. The five e-learning modules qualify for iiBV 210, 211, 212, 213, and 214 credits, which align with the current International Valuation Standards from IVSC. The five modules are: Valuing Intangible Assets, Valuing Early-Stage Companies, Valuing Minority Interests, International Cost of Capital, and Black-Scholes Option Modeling.

BV movers . . .

People: Kemp Moyer, CVA, CMQ/OE, has been named a partner at San Francisco-based BPM LLP; he has more than 15 years of experience in complex financial advisory with a primary focus on valuation services and has substantial industry experience in technology, life science, professional services, food and beverage, digital assets, manufacturing, and consumer business, among others … Achille Ekeu, CVA, president and CEO of The Washington Valuation Group, has been appointed to the George Washington University School of Business Leadership Advisory Council … Theresa Greer, CVA, CFE, has been promoted to senior manager at Troy, Mich.-based Doeren Mayhew; she is in the firm’s valuation and litigation support group.

Firms: Erickson Brown & Kloster of Colorado Springs, Colo., is adding Osborne Parsons & Rosacker of Colorado Springs, Colo., which provides accounting, auditing, tax, and business valuation services to business owners, high-net-worth individuals, and independent professionals in a wide variety of industries, including real estate, wholesale distribution, auto dealers, architecture firms, and nonprofit organizations … Princeton, N.J.-based Withum is adding two firms, Providence, R.I.-based Restivo Monacelli LLP and Glick & Associates of San Francisco; Restivo Monacelli provides accounting and auditing; state, federal, and international tax services; estate and wealth preservation; strategic planning/consulting; cannabis consulting; business valuation; and business outsourcing solutions to clients across the country; Glick & Associates provides a boutique level of tax preparation and consulting services to high-net-worth clients and companies in the professional services, executive compensation, and technology sectors … Farmington Hills, Mich.-based UHY LLP has acquired House Park Dobratz & Wiebler PC (HPDW) of Kansas City, Mo., a firm that provides audit, tax, and consulting services to a wide variety of clients, including family businesses, construction contractors, social clubs, technology firms, manufacturers, nonprofits, real estate companies, and private foundations … New York City-based PKF O’Connor Davies is adding Woburn, Mass.-based DiCicco Gulman & Co. (DGC), a firm comprised of a team of 200 accounting professionals led by 24 partners that provides private client, business tax, assurance and accounting, and business advisory services.

Please send your professional and firm news to us at

CPE events

Take a fresh look and get a different perspective on multiples in the healthcare sector. The speaker is a recognized expert in his field and a frequent speaker and author on healthcare valuation topics.

Very few industries are as exciting as the casino industry! Learn about what makes this industry tick, plus get a look at financial metrics and M&A activity—and not just about Las Vegas but other markets as well.

We welcome your feedback and comments. Contact Andy Dzamba (Executive Editor) at:


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