| Don’t Double Dip on Risk Adjustments
Program Type: Recorded Webinar (Audio, PPT)
Program Level: Update
Prerequisites: Participants need a background in the subject area and a desire to keep current
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Three (3) Hours
Fields of Study: Specialized Knowledge & Applications
Shipping Weight: 0lbs. 0oz.
One of the most discussed issues of late has been the need for business valuators to avoid duplicating risk considered in one aspect of the valuation process and replicated in another part of the process.
Among the issues to be addressed in this webinar will be whether the small stock “size premium” used in the discount rate build up encompasses certain risks that are generally considered in determining the specific company risk factor and whether the discount for lack of marketability (DLOM) duplicates risk already considered in the discount rate. We will also discuss the need to consider personal goodwill in your valuations.
After completing the session, attendees will be able to:
- Articulate the underlying elements of risk associated with subject company size
- Evaluate the risk measurements of size in the Morningstar Ibbotson SBBI Classic Yearbook and Duff & Phelps Risk Premium Report and contrast the two sources
- Critique current thinking in the development of the company specific risk premium (CSRP) and identify areas of risk overlap
- Identify and quantify risk considerations in determining the DLOM
- Categorize size risk, which is considered throughout the entire business valuation process, so as to avoid duplication of risk associated with size
- Discern and interpret specific considerations in the identification and determination of personal goodwill in business valuations
Who Should Attend
Any practitioner who desires to stay on the leading edge of business valuation
Robert Grossman, CPA/ABV, ASA, CVA, MST, CBA
Mr. Robert J. Grossman has practiced in the public accounting arena for over three decades. During his career, he has developed a significant base of experience in operational, tax, and valuation issues that affect privately held businesses and their owners. The breadth of his involvement encompasses the development and implementation of innovative business and financial strategies designed to maximize owner wealth by minimizing overall tax obligations and optimizing operational performance, resulting in business value enhancement.
After graduating from St. Vincent College in 1979 with Highest Honors in Accounting, Mr. Grossman joined an international accounting firm in Pittsburgh and later earned a Master of Science degree in Taxation with Honors from Robert Morris University. He is a CPA in Pennsylvania and Ohio. He attained his National Association of Valuators and Analysts™ (NACVA®) qualification as a Certified Valuation Analyst® (CVA®) in 1992. Mr. Grossman is Accredited in Business Valuation by the American Institute of Certified Public Accountants® (AICPA®) and has attained a Certificate of Achievement in Business Valuation from the organization. He also carries the well-recognized credentials of Accredited Senior Appraiser and Certified Business Appraiser™.
Mr. Grossman has been a member of NACVA for 20 years. He served on NACVA’s Executive Advisory Board and is a past Chair of that board (2006/2007), as well as past Chair of NACVA’s Education Board (2003/2004). He currently chairs NACVA’s Standards Committee and he is a member of the Ambassadors’ Club. He also serves as an instructor for the Current Update in Valuations team as well as the Business Valuation Accelerator Workshop and Advanced Valuation: Applications and Models class.
Mr. Grossman is a member of the American and Pennsylvania Institutes of Certified Public Accountants and previously chaired the Pittsburgh Committee on Taxation. He is a member of the Allegheny Tax Society and past board member of the Pittsburgh Chapter of the American Society of Appraisers, as well as current member and former President of the Estate Planning Council of Pittsburgh.
Mr. Grossman has also served as a national instructor for the American Society of Certified Public Accountants, for which he taught advanced business valuation classes to professionals. He has also served as an adjunct professor at Duquesne University in Pittsburgh, teaching business valuation theory to students in the MBA program. He also serves as a Subject Matter Expert as an Advisor in Pittsburgh-based Carlow University’s Master of Science in Fraud and Forensics Program.