Business valuation is a relatively new discipline. Financial valuation—the process of determining the value of a financial asset or liability—belonged first to those on Wall Street who focused on trading securities; the concept of business valuation, or valuing private companies, arrived on Main Street about 25 years ago by entering
Advertisement
Topics
Business Valuation
Tips for Starting a BV Practice
Business valuation is not an area of accounting to be entered into lightly. Statistics show there are many litigation claims against CPAs in the valuation area, mostly due to a misunderstanding of what services the CPA was to perform as part of the engagement and the CPA’s lack of formal
Business Bookshelf
Business Valuation and Taxes: Procedure, Law, and Perspective by David Laro and Shannon P. Pratt 450 pages; hardcover; $85.00 John Wiley & Sons, Inc. Hoboken, New Jersey, 2005 ny CPA/ABV preparing a business valuation (BV) has undoubtedly heard of U.S. Tax Court Judge David Laro and valuation pioneer Shannon Pratt.
Smart Stops on the Web
BUSINESS EVALUATION SITES Springboard for Searches www.business.com In addition to listing the most popular user searches and an option to download a free version of its toolbar, this search engine and business directory provides news stories by industry–financial services, human resources and small business, for example. Visitors also can find
Get Your BV Niche Out There
EXECUTIVE SUMMARY CPAs WHO SEEK TO DEVELOP A BV NICHE should first determine the areas in which the firm can demonstrate expertise to referral sources. Prospects want to know that a firm understands their business. CPAs need technical training and specific valuation credentials to become credible providers of BV services.
Medical Practices: A BV Rx
EXECUTIVE SUMMARY CPA/ABVs NEED TO BE AWARE that a market-data approach to valuing medical entities is easy to follow but may yield less meaningful data than an income approach. INCOME-APPROACH METHODS include capitalization of cash flows (CCF) and discounted cash flow (DCF). CPA/ABVs must identify a normalized net cash flow
“Would You, Could You, Should You Blog?”
EXECUTIVE SUMMARY BLOGS (SHORT FOR WEB LOGS) are an information-sharing tool with many business possibilities. They offer commentary on a variety of topics with links to Web sites or other online resources. Low operating costs make blogging a great marketing and knowledge management option for small firms. A BLOG TYPICALLY
AICPA Launches Community Web Site for Business Valuation and Forensic & Litigation Services
he AICPA is committed to supporting its members who specialize in business valuation and forensic & litigation services (BV/FLS). Through member research and feedback, the AICPA learned that CPAs in BV/FLS believed that a sense of community was a top priority. “Our goal is to provide an online home for
Price Equals Value Plus Terms
EXECUTIVE SUMMARY BUSINESS VALUATION (BV), SUCCESSION PLANNING and buy-sell agreements help CPAs prepare a foundation for selling a practice, but the final price of a firm will be affected dramatically by the transaction terms. TO SET A FINAL PRICE, CPAs SHOULD review the interrelationship of five key variables: the down
Smart Stops on the Web
THE INTERNET BUSINESS VALUATION SITES Add a New Credential bvfls.aicpa.org Institute members looking for a new challenge can register at this section of the AICPA Web site to take the November 15 or 30 Accredited in Business Valuation (ABV) exam. Other resources include the BV Competence Assessment Tool, Exam Candidate’s
20 Steps for Pricing a Patent
nventors help solve vexing problems, both sophisticated and simple, and as a result sometimes enjoy considerable celebrity and rewards. Our society’s economic success, too, is based on innovation. To encourage public disclosure of inventions, the U.S. Patent and Trademark Office (USPTO) issues an inventor a patent, which excludes others from
Damages Aren’t Always Patently Obvious.
EXECUTIVE SUMMARY IN PATENT DISPUTES, CPA LITIGATION CONSULTANTS help patent holders demonstrate that “but for” an infringement they could have sold more of their product. Quantifying damages in patent infringement cases can be the focus of a forensic and litigation services practice. THE PANDUIT CASE PROVIDED FOUR QUESTIONS CPA litigation
Small Firms: Think Big!
EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT HAS CREATED new requirements for public companies, spurring greater demand for professional services and for a range of engagements that offer opportunities to well-positioned smaller firms. ONE RESULT IS A CHAIN REACTION in which the big firms are going to focus on certain services and
The ABV Credential: Leading the Way
redentialing has always been an essential way for professionals to distinguish themselves and highlight their qualifications in a particular field. This article focuses on the Accredited in Business Valuation (ABV) credential, administered by the AICPA, and describes its charter, its underpinnings and its evolution as the accounting profession goes through
A Good Deal Depends on Preparation
EXECUTIVE SUMMARY A SPECIALIST SUCH AS A CPA/ABV can optimize results for owners who want to sell to an outsider for the maximum the market will reasonably bear. HOW THE CLENT WILL USE A BUSINESS VALUATION (BV) determines the procedures a CPA/ABV will follow to produce the end result. At
Smart Stops on the Web
SMART STOPS ON THE WEB Resources Revisited www.bvresources.com First listed as a Smart Stop a year ago this issue, this Web site still offers CPAs and business valuation (BV) professionals all the features they have come to expect, such as its BVLibrary, definition of the week, online forums, and gratis
Start a BV Engagement the Right Way
EXECUTIVE SUMMARY EACH VALUATION ASSIGNMENT IS UNIQUE, and often there’s more than one way to answer a question, interpret a fact or approach a problem. How the valuator prepares the client for the BV engagement sets its direction and becomes the foundation of the engagement letter and, ultimately, a responsible
The Auditor’s Approach to Fair Value
EXECUTIVE SUMMARY STATEMENT ON AUDITING STANDARDS (SAS) NO. 101, Auditing Fair Value Measurements and Disclosures, gives auditors guidance on understanding how an entity’s management calculates fair value and on determining whether that measurement conforms with GAAP. THE SAS’s PROVISIONS ARE EFFECTIVE FOR AUDITS of financial statements for periods
Difference Between Mergers and Acquisitions
EXECUTIVE SUMMARY CLIENTS BENEFIT FROM USING AN INTERMEDIARY such as a CPA/valuator to handle a merger or acquisition. A valuator should know a client’s industry thoroughly and have procedural training. Even experienced CPA/valuators may need to bring in an outside expert for longtime clients in order to avoid bias.
Smart Stops on the Web
BUSINESS VALUATION SITES Definitions, Discussions and Downloads www.bvresources.com CPAs involved in business valuation (BV) can obtain free information and purchase books and software here. The forums online section features various discussion topics such as what happened at recent BV-related conferences and court case decisions. The definition of the week clarifies
Features
FROM THIS MONTH'S ISSUE
Flip out with the latest Tech Q&A
The September Technology Q&A column shows how to create dynamic to-do lists with Excel's checkboxes and also how to set up multifactor authentication texts that don't rely on phones. Flip through both items and view a video walkthrough in our digital format.
From The Tax Adviser
August 30, 2025
2025 tax software survey
July 31, 2025
