BVR Logo February 23, 2022 | Issue #233-4

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

Thumbs-up reviews for UBV6 and VAB6

The March issue of Business Valuation Update has reviews of two important books that are about to be released: Understanding Business Valuation, 6th edition (UBV6), by Gary Trugman (Trugman Valuation) and Valuing a Business, 6th edition (VAB6), originally written by Shannon Pratt and updated by a team of contributors.

Trugman brings many years of experience in the field and in the courtroom to fill his book with practical examples from actual engagements and sample valuation reports. His years in the classroom teaching valuation courses is evident in the book’s easy-to-understand style. Understanding Business Valuation has been thoroughly revised and will have a companion website that will keep the material up to date. “It is a great reference book that will end up with many dog-eared pages and sticky notes in a very short time,” writes Jim Alerding (Alerding Consulting LLC) in his review.

The sixth edition of Valuing a Business is made possible by the American Society of Appraisers and the ASA Educational Foundation, who took the book under their collective wing after Pratt’s retirement. A team of over 60 ASA members went about revising the chapters and adding some new ones. “I am very pleased that the ASA Educational Foundation has elected to continue to oversee the publication of Valuing a Business for current as well as the next generation of business appraisers, and I highly recommend this text for all business appraisers,” writes Harold G. Martin Jr., partner-in-charge of valuation and forensic services for Keiter, in his review.

Both books are scheduled for release in March and are now available for preorder—just click the links above.

The first thing to look at in a strip club

When valuing an adult entertainment venue or nightclub, one of the most important things to examine is the point-of-sale (POS) system. This is a “very key” source of financial data, but it is subject to manipulation, according to speakers on a recent BVR webinar. Analysts need to know what POS software the club is using and, during a site visit, make it a point to see where all of the registers are—and make sure they are all connected to the system (you can verify that when you look at the POS records). In one case, the club operators hacked into the POS software to manipulate records. The webinar speakers, Lynton Kotzin and Jason Pierce, both with JS Held, gave a fascinating look at the nightclub and adult club business and how to value these entities. To view a replay, click here.

A valuation trial—on papers only?

Yes, but only in New York? In a breach of contract case, a valuation trial was scheduled to determine damages. The court had already decided that the defendant was liable for damages, so the only remaining question was the amount of damages. Both sides had experts who submitted affidavits as to their opinion of the damages amount, which was based on the value of stock the defendant promised to purchase but then refused to close the deal. The plaintiff moved for summary judgment, saying that the damages could be established on paper as there were no issues of fact necessitating a trial. The defendant demanded an in-person trial, insisting that he had a right to cross-examine the plaintiff’s expert witness about his valuation of the stock. But the court disagreed and awarded damages to the plaintiff based on the papers filed. “Defendant has no right to cross examine witnesses at trial unless there is an issue of material fact,” states the court in its opinion. The defendant has appealed.

Attorney Franklin C. McRoberts (Farrell Fritz), who tipped us off to this case, has never seen a valuation trial conducted on papers alone, he says in a blog post. If any BVWire readers have had a similar experience, please let us know—email us at

The case is Quattro Parent LLC v. Rakib, 2022 N.Y. Misc. LEXIS 260, 2022 NY Slip Op 30190(U), and a case digest and the full opinion are available on the BVLaw platform.

TAF seeks candidates for its board of trustees

The Appraisal Foundation (TAF) is searching for candidates to serve on its board of trustees. Trustees provide oversight to the Appraisal Standards Board (ASB) and Appraiser Qualifications Board (AQB). Three at-large trustee seats are available, and the board meets twice a year. Trustees are reimbursed for travel expenses but are not compensated for their time. The individuals selected for the board of trustees will serve three-year terms beginning Jan. 1, 2023. Completed applications must be received no later than March 1. Click here for an application.

Houlihan Lokey and ELFA issue private debt valuation guide

Houlihan Lokey and the European Leveraged Finance Association (ELFA) have published a report as part of ELFA’s Diligence Series called Technical Guide for Valuation of Private Debt Investments. The guide is designed as a primer on the methodologies and practical considerations valuation practitioners face when assessing private debt instruments. In North America, the private debt market is estimated to have more than $300 billion in capital with $18 billion raised in the first quarter of 2021, the guide says.

BVR to webcast Energy Valuation Conference May 12

For the fourth year, BVR is pleased to partner with the Houston Chapter of the American Society of Appraisers (ASA) to present a live webcast of the Energy Valuation Conference on May 12. The conference, which is in its 12th year, will feature presentations from nationally recognized speakers who are profession leaders, covering a range of important topics in the industry. Early-bird pricing is available through March 31. BVR also offers recordings, transcripts, and presentation materials for this conference. For more information and to register, click here.

CBV Institute releases videos on intangibles

The CBV Institute, Canada’s valuation professional organization (VPO) and standard-setter, has released a three-part series of video interviews on the valuation of intangible assets. The series features CBV members giving their views of the complexities of intangible assets from their respective areas of practice in financial reporting, litigation, and private equity. The interviewees are Tiki Cheung (EY Canada), Chris Polson (PwC Canada), and Kevin Hutchinson (OMERS). You can watch the videos if you click here.

Extra: Jeremy Stuber, global equity analyst at Newton Investment Management, recently participated in a panel discussion about intangibles, and he makes some comments that you can read if you click here.

BV movers . . .

  • People: Carli Lehr, CPA, CVA, CSEP, will be the director of BSSF Valuation & Litigation Consulting, a new entity Camp Hill, Pa.-based Brown Schultz Sheridan & Fritz (BSSF) formed to focus on business valuation and litigation support services … Samantha Albert, ASA, ABV, has been promoted to vice president at Memphis-based Mercer Capital; she is experienced in the valuation of companies across a variety of industries and has specific experience working with trucking companies and related enterprises as well as asset holding entities. Also, Mary Jane McCaghren has been elevated to senior financial analyst at the firm; she is on the firm’s FinTech Industry team and has valuation experience in engagements related to corporate planning and reorganizations, financial reporting, fairness opinions, litigation support, employee stock ownership plans, and estate and gift tax planning and compliance matters … Himanshu Chaudhry, CFA, has joined Prairie Capital Advisors Inc. as vice president; he will be part of the firm’s Atlanta office and will focus on employee stock ownership plan and general business valuations, fairness opinions, and other financial advisory services … Scott Bouchner, CMA, CVA, CFE, CIRA, has been named director-in-charge of the forensic and advisory services practice at Miami-based Berkowitz Pollack Brant; he has more than 25 years of experience providing clients with business valuation, litigation support, and management consulting services, including damage analysis, securities litigation, and business and family dispute resolutions.

    Firms: Springfield, Mo.-based BKD LLP will merge with Charlotte, N.C.-based Dixon Hughes Goodman LLP (DHG) to create a new top-10 firm with $1.4 billion in revenue and setting the stage for a “robust national growth strategy,” the firms say; a new name for the combined firm has yet to be announced … Methodical Valuation and Advisory, a valuation and financial advisory firm specializing in the structured products market, has joined Stout, effective February 7 … New York City-based PKF O’Connor Davies is adding Simon Tapper Edelman & Wilner PA (STE&W) of Hackensack, N.J., a firm that provides a wide range of accounting, tax, and consulting support; this is the second recent foray into New Jersey for PKF as it recently acquired LB Goodman & Co., of Fair Lawn … Milwaukee-based Wipfli LLP has acquired two data analytics firms: Chicago-based Solve100, which offers business intelligence, data analytics, machine learning, and predictive analytics services, and Waypoint of West Chester, Pa., which offers enterprise data management, analytics, and enterprise performance management solutions … Naperville, Ill.-based Sikich LLP is adding IPA 200 firm Cotton & Co. of Alexandria, Va., which provides financial services to local, state, and federal governments.

    Please send your professional and firm news to us at

CPE events

  • Healthcare Valuations: A Checkup. February 23, 10:00 a.m.-11:15 a.m. PT/1:00 p.m.-2:15 p.m. ET. Featuring: Kathryn A. Taylor (PYA PC) and Justin Conant (PYA PC). CPE credits: 1.5.

This session will focus on physician compensation. Speakers will discuss the top 10 issues potentially impacting physician compensation in 2022 and will give insights on the group practice exception, advanced practice provider supervision and personally performed work, value-based compensation, the impact of COVID-19, updates to the Medicare Physician Fee Schedule, and much more.

It’s been said that appraisers who work on ESOP valuations deserve “combat pay.” Learn why as speakers discuss the complex challenges, common pitfalls, and cautionary areas when doing ESOP valuations.

ASA 2021 International Conference

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


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