Transparency in Private Market Valuations
The FVS Valuation Podcast
In early 2025, the new US administration has been implementing changes which could affect regulatory oversight in private markets and alternative investments. Transparency in asset valuation is vital, especially where regulation is limited. Inadequate valuations or outdated financial reports can negatively impact investor decisions, leading to market inefficiencies and reduced confidence. Our presenter, an expert in private market valuation, provides insights and recommendations on managing these issues. Key takeaways: Industrywide benefits of enhanced transparency How to verify...
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Reconciling Discount Rates for Intangible Asset Valuation in PPAs
The FVS Valuation Podcast
Maryellen and Ross delve into the subjectivity and controversy surrounding discount rates, the importance of understanding the asset and forecast inputs, and the application of market participant assumptions. Including these key takeaways: Subjectivity in Discount Rates: Understanding the significant subjectivity and controversy in determining discount rates. Qualitative Assessments: The role of qualitative assessments in aligning discount rates with associated risks. Resources and Guides: Utilizing available resources to enhance valuation analyses. Continue reading to learn about key...
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Valuation Considerations in Equity Compensation
The FVS Valuation Podcast
Derivatives such as options have been used to reward employees for many years, and executive pay packages often include features of complex derivative securities such as options and restricted stock with vesting schedules based on various contingencies. Join us for a deeper look of what’s “under the hood” in the relevant valuation techniques such as lattice models and Monte Carlo simulation, and how these relate to regulations such as ASC 718 and the new Pay versus Performance (“PvP”) requirements for proxy statements. • Relevance of Internal Revenue Code...
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M&A vs Equity Analysis (revisit)
The FVS Valuation Podcast
This is a refreshed version of an episode from October 2022. Professor Matthew Shaffer shares his journey into the field of accounting and his interest in corporate governance, valuation, and the market for corporate control. His article, "Why Value the Enterprise and Route to the Equity," explores the rationale behind using enterprise value evaluations in M&A settings instead of directly valuing equity. Josh and Matt discuss: Accounting as a fundamental framework for understanding business activities and market movements. Impact of Non-Recurring Items on Valuation Methods: Future...
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Estate Planning – Anticipating the Change in 2025
The FVS Valuation Podcast
Plan early! The Tax Cut and Jobs Act (TCJA) significantly increased the estate tax exemption and there is uncertainty around whether it will be extended or modified. It's recommended to plan early and not wait until the last minute to ensure all necessary legal and valuation work can be completed in time. Greg Saunders and Lisa Cribben explore the complexities of estate planning and valuation, emphasizing the importance of early and continuous planning. They discuss various strategies to manage and reduce estate taxes, the critical role of valuation appraisers, and the potential impact of...
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Valuation Case Law Update
The FVS Valuation Podcast
In this interview, Dave and Natalya discuss several significant court cases related to gift and estate tax valuations, ESOPs, and control issues in business valuations. Throughout the discussion, they emphasize the need for careful planning and the potential implications of court decisions on future valuation practices: Controversial Connolly Case which included life insurance proceeds in the value of a company for estate tax purposes Importance of Proper Valuation Methods: The discussion emphasized the need for accurate and appropriate valuation methods, particularly in ESOP cases...
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Macroeconomic Update 2024 - Cost of Capital & Valuation Impact
The FVS Valuation Podcast
This interview was recorded on 10/28/24 at the AICPA-CIMA Forensic and Valuation Services Conference prior to the presidential election on 11/5. Economic issues discussed are still relevant as of the publish date11/21/24 Don’t miss this deep dive into the cost of capital and its implications for businesses and investors Nunes and Harrington, both from Kroll, share a macroeconomic update with the FVS podcast, focusing on the cost of capital and its valuation impact. The U.S. economy is performing better than expected, avoiding a recession and potentially achieving a soft landing, with...
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Discounted Cash Flows with Roger Grabowski (revisit)
The FVS Valuation Podcast
This is a refreshed version of an episode from June 2022. Roger Grabowski has made numerous contributions to the field of valuation, particularly in forecasting cash flows using the discounted cash flow method (DCF). Roger speaks with Josh about the evolution of valuation practices and emphasizes the importance of understanding historical growth and differentiating between organic growth and growth through acquisitions. Topics discussed include: The importance of learning about the company and its management Thank you, Shannon Pratt - writing and presenting technical topics in an accessible...
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Using AI in Your Valuation Practice – Part 2
The FVS Valuation Podcast
This is the 2nd of a two-episode interview with Rod Burkert who is a valuation practice coach and advisor. If you have not listened to Part 1 – consider . Rod views AI as a tool, and like how professionals learned to use Excel and Word, he encourages a mindset shift to familiarize oneself with AI and its potential applications in business valuation. How to prompt so AI understands where you are coming from and gives you better results Consumers' expectations for professionals to incorporate AI into their practices and use AI to save time and money AI-related tools to help your...
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Eye on Fraud - Fraud in the Music Industry
The FVS Valuation Podcast
The authors of the Eye on Fraud article on the same topic, Howard Silverstone and Sean Sauder, explore historical and modern examples of music fraud, including "payola," artist fraud, and streaming fraud, and discuss industry measures to combat these issues, including: Streaming fraud: bots, click farms, and playlisting scams Impact of fraud on artists and the industry, such as royalty fraud and illegal downloading The role of forensic accountants and the use of specific software and global task forces to fight streaming fraud Guests: Howard Silverstone, CPA/CFF, Executive Vice...
info_outlineThis podcast episode is part of the extensive resource library available from the AICPA’s Forensic and Valuation Services Section, the premier provider of guidance, tools, and advocacy for professionals who specialize in providing forensics and business valuation services. Visit us online, and if you’re not already a member, consider joining this active community of your FVS peers. You will get 16 credits of complimentary CPE and access to rich technical content.
Rod and Josh discuss the impact of artificial intelligence (AI), on business and life: the talent crunch in the business valuation profession and the high salaries offered by large firms make it difficult for smaller firms to hire junior analysts.
Imagine growing your business without being able to hire additional staff - could AI be a solution to this constraint?
Key takeaways:
- The importance of familiarizing oneself with AI and its potential applications in business valuation
- How AI can be used to do a lot of tasks that you would hire a junior analyst to do.
- Make time to learn the tool. See the show notes for a list of great resources
- Practical examples of how to use AI to assist with writing and due diligence prep
Guest: Rod Burkert, CPA/ABV, Burkert Valuation Advisors
Host: Josh Shilts, CPA/ABV/CFF/CGMA, Shilts CPA
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RESOURCES FOR FURTHER EXPLORATION
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Rod will be a presenter at the 2024 AICPA-CIMA Forensic and Valuation Services Conference, October 28-30 in Dallas, TX. CLICK HERE to register
- Early bird discounts are available through Sept 13.
- FVS Section, ABV, CFF, and CVFI save an additional $550.
Exclusive content included in FVS Section membership: If you’re not a member, consider joining this active community of your FVS peers. Visit us online, You will get 16 credits of complimentary CPE and access to rich technical content
The state of AI and machine learning in financial instrument valuation | FVS webcast archive
LEARN MORE ABOUT THE FOLLOWING AICPA CREDENTIALS:
Accredited in Business Valuation (ABV®) – Visit the home page and check out the ABV infographic
Certified in the Valuation of Financial Instruments (CVFI®) – Visit the home page and check out the CVFI infographic
Certified in Financial Forensics (CFF®) - Visit the home page and check out the CFF infographic
This is a podcast from AICPA & CIMA, together as the Association of International Certified Professional Accountants. To enjoy more conversations from our global community of accounting and finance professionals, explore our network of free shows here. Your feedback and comments are welcomed at [email protected]