Last chance to participate in BVR’s Firm Economics Survey
The BV profession is enjoying unprecedented growth: The vast majority of firms (81%) anticipate their valuation practices will expand in the coming year. Nearly half (48%) expect to grow their top-line, BV practice revenues by more than 10%.
That’s just a slice of preliminary data from BVR’s 2007 Report on Business Valuation Firm Economics & Best Practices, which we’re still collecting and analyzing for the final report. There’s still time to participate—and receive $100 off the non-participant price, plus a free copy of summary results. But hurry: The deadline for the price savings expires November 15, 2006. To register, click here.
Partner compensation to support a ‘superstar’ BV practice
Summary compensation data and more from BVR’s survey will appear in upcoming issues of the Business Valuation Update™. In the meantime, don’t miss the next BVR telephone conference on Succession Planning for Business Valuation and Litigation Service Firms. Topics include how to build a flourishing BV practice through partnership pay structures, practice leadership, partnership agreements, mergers with CPA firms, and much more.
The powerhouse panelists include Ron Seigneur, Allan Koltin, Christine Baker, Ed Dupke, and Gary Trugman; special co-sponsorship by the Exit Planning Institute. To register, click here.
Sr. Valuation Professional Opportunity (New York, NY)
Privately-held investment bank seeks experienced valuation professional to establish
and lead formal valuation practice within the firm. Firm is well established in middle-market
with a 30+ year track record of completed transactions, primarily in M&A, private placements,
and corporate advisory work. Fairness opinions issued have appeared in SEC
documents. Firm wants to formalize and expand BV practice.
Ideal candidate is accredited with 10+ years active valuation experience, a proven track record
marketing, sourcing, managing and completing a wide spectrum of BV engagements.
Confidence in public speaking related to valuation issues a plus. Our employees know of
our search effort. Qualified candidates please submit resume and credentials to:
Free report: How to introduce exit planning into your BV practice
The need for exit planning services is booming, now that business owners of the “baby boom” generation get ready for retirement. Yet Rich Jackim of the Exit Planning Institute (EPI) tells us that “seventy percent of business sellers going into retirement regret selling their business” because they didn’t plan for succession (and perhaps because they didn’t enlist the aid of a business appraiser to derive a value for the business). For a free copy of “Life After Business,” click here and scroll to the link at the bottom of the page. EPI also offers The $10 Trillion Opportunity, by Rich Jackim and Peter Christman, a guide to designing successful exit strategies for middle market business owners—and a way for BV professionals to generate new business from existing clients, and bring highly-qualified prospects to their valuation practices.
IASB to issue response to FSAS 157 by end of year
Just last month, the International Accounting Standards Board (IASB) held a joint meeting with its U.S. counterpart, the Financial Accounting Standards Board (FASB) to discuss, among other agenda items, its response to FSAS 157, Fair Value Measurement. (See BVWire #48-3).
According to the latest update, “IASB plans to issue a discussion paper about fair value measurements by the end of this year.” A primary focus: IASB has decided that “in the final business combinations standard, the term fair value should be as defined in IFRS 3 [International Financial Reporting Standards].” At the joint meeting, FASB postponed its decision on the measurement attribute, to allow the IASB staff time to consider whether there were any “material differences” between fair value measurements in ISFR 3 and those in FSAS 157.
The Boards also discussed procedures for finalizing their common conceptual framework, and the status of projects included in their original Memorandum of Understanding (February 2006). Click here to read this “roadmap for convergence between IFRSs and U.S. GAAP.”
3rd Quarter 2006 Control Premium Data Have Arrived . . .
We’ve just posted the 3rd Quarter 2006 update to the Mergerstat® / Shannon Pratt's Control Premium Study™ online, adding 134 new transactions and the corresponding summary documents. The database now contains transaction details on over 5,250 public companies, with a median revenue of $93.4 million and a $122.3 million median selling price.
This week, we’ve also updated the following databases at BVMarketData.com:
• Pratt’s Stats™ (now has 9,157 count)
• Public Stats™ (now has 1,996 count)
• Valuation Advisors’ Lack of Marketability Discount Study™ (now has 3,222 count)
. . . Along with answers to an FAQ on Mergerstat data
"What role does the 'unaffected price' play in calculating the control premium—and how do you determine it?” That’s just one of the many frequently-asked questions that the folks at Mergerstat receive about using their control premium. Their answer:
The unaffected price is a reflection of what the quoted market price would be for the stock of a public company prior to being manipulated by news, rumors or any corporate activity by the company.
For a free copy of all responses to the FAQ, click here. And for a transcript and/or CD of the telephone conference on Control Premia, featuring expert commentary by Aswath Damodaran (NYU), click here.
Fair Market Value versus Fair Value: The challenge is still ON
Remember Bruce Bingham’s challenge to business appraisers regarding the difference between fair value and fair market value? (See BVWire #47-3) Well, we received a wealth of rich and informative responses, just another indication of how insightful—and interactive—the BV community can be.
We’ve also succeeded in tracking down the busy Mr. Bingham, who just came back from the recent CICBV/ASA joint business valuation conference in Canada, where he presented the latest update from the International Valuation Standards Committee. (See BVWire #49-4) In clarifying the original challenge, he explains, “I intended the issue to be fair value as defined by FASB,” not fair value as defined in state shareholder dissent cases. Bingham’s challenge is still good: Page one in Business Valuation Review will go to any appraiser who can cite “a specific instance where fair market value and fair value are different.” Email your answers to the BVWire editor.
More on fair value for financial reporting from ASA/CICBV
After their wildly successful, record-setting (700+ attendees) joint valuation conference in Canada this past October, the Canadian Institute of Chartered Business Valuators (CICBV) and the American Society of Appraisers (ASA) are offering only three chances to attend their one-day, advanced BV seminar on “Valuation and Financial Reporting”: November 28th in Toronto, the 29th in Montreal, and December 1 in Vancouver. For more information, visit CICBV Events at www.cicbv.ca.
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