Current Update in Valuations

The latest business valuation theories and their applications to specific fundamental valuation principles have been “wrapped” into an actual detailed and complete valuation report prepared under the fair market value standard of value. The instructors incorporate a “nominal group technique” which will focus on the questions and concerns of the participants.

This course will cover, but will not be limited to the following topical areas.

Case Law Update: Federal—A review of court cases designed to provide guidance in resolving valuation issues and maintaining compliance with tax code, regulations, and court decisions.

Case Law Update: State—A discussion covering hot-button issues that define the manner in which valuations at the state level are prepared. Topics include the convergence of court rulings, across jurisdictions, relating to the valuation and division of goodwill (enterprise vs. personal), as well as interpreting the standard of value in marital dissolution cases.

Industry Standards—An update to professional and industry standards that will address changes that have taken place in the industry standards, how the standards maze been simplified, how these changes will affect your valuation practice and a look at calculation of value vs. conclusion of value.

Normalizing Financial Statements—A discussion on the challenges valuators face in normalizing financial statements, where the industry is heading in providing support for compensation, built-in capital gains tax, and enterprise v. personal goodwill.

Cost of Capital—A breakdown of the build-up methodology, beginning with the volatility of the 20-Year Treasury, where should the valuators turn for equity risk premium and size premium and how deep valuators need to dig when applying empirical data.

Discounts and Premiums—The latest facts and studies to support discount for lack of marketability, including how to dig down and apply database information specifically to subject companies, and applying option pricing models and LEAPS.

This course is also an option to fulfill NACVA’s Certified Valuation Analyst (CVA) or Accredited Valuation Analyst (AVA) recertification requirement, Knowledge of Current Developments (KCD) for 25 points and eight hours of CPE.

After attending the course, participants will be able to:

• Determine which state and federal case law precedents guide valuation issues

• Evaluate professional and industry standards

• Utilize the updates presented on the various valuation theories and methodologies to strengthen the effectiveness of communicating with clients, and to produce an impressive work product