Complexities Of Subsequent Events in Business Valuation
The FVS Valuation Podcast
Catherine and Nathan, both seasoned CPAs and ABVs, discuss the complexities of subsequent events in business valuation. They explain the definition, implications, and relevance of these events in contexts like estate and gift tax transactions. Their conversation covers how these events can affect or indicate value, the standards and court rulings involved, and the challenges of determining what is known or knowable at the valuation date. Key Takeaways: Definition of subsequent events are particularly relevant in litigation, estate, and gift tax transactions Known or knowable at the valuation...
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Dissenting Shareholder Disputes
The FVS Valuation Podcast
Dissenting shareholder disputes occur when minority shareholders believe their shares are undervalued in a company transaction, leading to legal dissent. There is a difference between dissenting and oppressed shareholder matters which our expert, Hubert Klein, will explain as well as the legal and valuation standards that are used. Klein highlights the importance of transparency and professional skepticism and thorough understanding of both sides' perspectives, such as: Common triggers for dissenting shareholder actions Preventing dissenting shareholder issues Reconciling valuation...
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Enhancing Professional Growth through AICPA FVS Section Resources and Participation
The FVS Valuation Podcast
The discussion underscores the importance of participating in professional communities like the AICPA FVS Section for continuous learning and support. Bethany and Tade highlight how the FVS community has significantly contributed to their professional growth by providing key resources to assist with client engagements and a supportive community of professionals. Using FVS Section resources in client work Networking benefits – connecting with supportive SMEs Community involvement aiding professional development Continue reading to learn about key resources available at...
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Financial Instrument Valuation Series: SAFEs, Convertible Notes, and Embedded Derivatives
The FVS Valuation Podcast
Simple Agreement for Future Equity (SAFEs), convertible notes, and embedded derivatives are among financial instruments which feature optionality, which can obscure confidence in the expected value of the associated future economic benefits. Published guidance is limited, and adding to the complexity, some alternative investment transactions have optionality features lurking within, dormant, and not readily apparent. This presents a wrinkle for practitioners who try to value assets which could morph into something else tomorrow. Listen to how specialists in this area approach...
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Women Leaders in Business Valuation
The FVS Valuation Podcast
To celebrate Women's History Month, we are excited to share a special episode for our FVS Valuation podcast which explores the diverse backgrounds of several business valuation leaders, their paths into a career in business valuation, and their journeys to becoming experts in the field. The conversation highlights the many routes that can lead to success in business valuation, including The significance of obtaining the Accredited in Business Valuation (ABV) credential and how it has impacted their careers Their strategies for achieving a healthy work-life balance while excelling...
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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...
info_outlineIn 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
- Valuation professionals must stay informed about legal precedents and be prepared to adapt their methods accordingly
Guest: Natalya Abdrasilova, Director of Valuation and Litigation Services, BDM PC
Host: David Consigli Jr. , Partner, FAZ Forensics
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RESOURCES FOR FURTHER EXPLORATION
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https://fvssection.libsyn.com/fvs to access the show notes with direct links.
2024 AICPA & CIMA Forensic & Valuation Services Conference - for purchase
Valuation Case Law Update session
Full conference package
Exclusive content – Free for FVS Section members: 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
- FVS Toolkit for Estate and Gift
- Estate and gift case law case summaries
- 2024 Economic Damages Case Law Update - Case Summaries
From the archives: FVS Valuation Podcast episodes
Using AI in Your Valuation Practice – Part 2
Valuations for Gift and Estate Taxes: Review and Best Practices
Valuation Court - Key Takeaways from Recent Cases
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]