Resources for Business Valuation Appraisals

 

The Art of Valuation 

Business appraisal is as much an art as it is a science. This collection of essays by 29 top experts from overlapping disciplines uses storytelling to capture a flavor of the romance, the intrigue, the art and heart of business appraisal and its many unique practitioners. Beginning with a history of the profession, The Art of Valuation reveals the nuances, tips and tactics, and ways of thinking about business appraisal that make the difference between good and great work. It seeks to encourage practitioners of all levels to enlarge their focus from the technical issues and mechanics of analyses and spreadsheet modeling to the essence of the big-picture thinking that produces a powerful, effective, credible work product.

Whether readers are seasoned professionals, firm staff, graduate students, or corporate project managers, this tribute to the irreplaceable role of human intellect, judgment, experience, and integrity in appraisal (and business) problem-solving and strategy will be an inspiration toward further excellence and creativity in whatever they do.

Visit the Foundation store to get your copy!

Business Valuation Briefs

The Business Valuation Resource Panel is developing a series of Valuation Briefs. These briefs are intended to provide a practical discussion of valuation issuesthat may be of interest to clients or the public at large. They are not intended for other valuation contexts, nor to provide formal guidance or authoritative standards or commentary.

Company-Specific Risk Premium

A company-specific risk premium (CSRP) is often included within discount rates used in fair value measurements. However, there is diversity in practice within the valuation community as to what the premium should account for and how it should be quantified. Additionally, a CSRP is often subjectively applied without identification, quantification, or support of its underlying risk components. When properly applied, a CSRP can be used as a tool to align the discount rate with the risks of a subject business or asset, and their associated forecasts.

Understanding the Differences: Conclusion of Value vs. Value Calculations

In this Valuation Brief, the authors seek to provide clarity regarding the differences among each assignment’s scope of work and the various forms of reports available to meet the requirements specific to a given valuation. They summarize the relevant business valuation standards provided by the appraisal standard setting and credentialing organizations and provide practical suggestions for valuation professionals and their clients on best practices. 

Click here to view the Business Valuation Advisories.

Business Valuation Organizations

Below are some helpful links to organizations that are related to the business valuation discipline. This listing is not intended to be exhaustive, but a sampling of relevant organizations. Contact these organizations for more information that will help you in your day-to-day practice.
Sponsors of The Appraisal Foundation
American Society of Appraisers
Royal Institution of Chartered Surveyors

Valuation Professional Organizations 
American Institute of CPAs
AICPA Forensic and Valuation Services 
CBV Institute 
National Association of Certified Valuators and Analysts 

Related Professional Organizations
CFA Institute 
The ESOP Association 
International Private Equity and Venture Capital 

Non-member Standard Setting Organizations
The Appraisal Foundation
International Valuation Standards Council  
Financial Accounting Standards Board  
International Accounting Standards Board 

U.S. Government Entities
The Appraisal Subcommittee 
Internal Revenue Service 
U.S. Securities and Exchange Commission 

Business Valuation Resource Panel

The purpose of the Business Valuation Resource Panel (BVRP) is to provide a permanent assembly of representatives from diverse sub-specializations within the business valuation discipline so The Appraisal Foundation's Board of Trustees:   

• has a centralized ongoing communication with representatives from the business valuers; and

• benefits from information, advice and recommendations on relevant business valuation issues.

Activities of the BVRP include weighing in on proposed updates to USPAP, overseeing the development of Business Valuation Advisories and Briefs and working on other special projects related to business valuation. 

For more information, please visit the Business Valuation Resource Panel homepage.

For any questions please contact Akirah Ray.

Appraisal Issues Task Force 

The Appraisal Issues Task Force (AITF) is a voluntary group of valuation professionals who specialize in the field of valuation for financial reporting and who seek to improve the practice.  The Financial Accounting Standards Board (FASB) and the U.S. Securities and Exchange Commission (SEC) are increasingly looking for information regarding Fair Value or Fair Market Value, yet there is a lack of authoritative guidance on best practice in these areas.  The AITF is designed to help establish and interpret existing rules specific to valuation for financial reporting. Further, it works with the FASB and the SEC to evaluate proposals and recommend methodology, assumptions, and approaches.  This is an industry-wide consortium, and everyone's views are important and welcome.  The AITF usually meets annually in Washington, DC in January, May and September. 

The Appraisal Foundation provides administrative support to the AITF. For more information on AITF membership, please contact Akirah Ray.

In 2006, the AITF developed the following resource for Business Valuers:
 Illustrative Valuation Issues as developed by the Appraisal Issues Task Force (AITF).