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   The International Association of Certified Valuation Specialists

Valuation News Updates

09-03-2022 19:19 | Lisa Guo (Administrator)

Sources of new business you may overlook

Business valuation professions know that attorneys are a prime source of new engagements, but other sources may not immediately come to mind. Victor Werley, founder of Pinnacle Advisors (Little Rock, Ark.) is a credentialed valuation expert, but his practice is mainly financial advisory, money management, business brokerage, bookkeeping, and other financial services. “I would say that a very overlooked source of potential valuation business is in the other areas of my practice,” he said during a recent webinar.

Good prospects: “If there are business brokers in your area, find them and get to know them,” he advises. “They need you to do valuation work.” As a broker himself, Werley says it’s helpful to be able to show clients a valuation from an independent source. Financial advisors are another good source of business. They typically have clients with high net worth most of which will either involve large pieces of real estate or privately held businesses. “I tell my financial planning clients that, if a private business comprises more than 20% of your net worth, you need to have that business valued every two years. That is just standard practice with my clients.” But you will need to explain to those financial advisors what valuation is, what it does, and why it is important, he notes.

Werley also suggests that valuation experts join associations of business owners but don’t just show up and expect to sign up new clients. “Educate them,” he advises, by doing presentations or writing articles.

One more idea: Werley has increased his valuation business by collaborating with another valuation expert with a solo practice, Ericka Heiser (Sioux City, Iowa). Their backgrounds and experience complement each other, so they have been collaborating on engagements that they otherwise would have turned away. Heiser’s business has increased also. You can learn all about their experience with this arrangement if you listen to a recording of their webinar, Collaborate With Valuation Professionals Who Complement Your Strengths to Better Serve Clients.

Trugman’s Understanding Business Valuation has hit the stands!

Understanding Business Valuation, 6th edition (published by BVR), is now available in print and/or PDF format. The new edition of this long-standing bestseller features an exclusive companion website as well.  BVResearch Pro and Digital Library subscribers already enjoy access to the PDF of the new edition. It’s available for purchase if you click here (print and/or PDF).

The book, written by Gary Trugman (Trugman Valuation), is over 1,000 pages of clear, concise explanations of business valuation theory highlighted by practical examples from actual engagements. Plus, there is a companion website with sample valuation reports, appendices, and supplemental material. A review of the book is in the March issue of Business Valuation Update, and we will run some excerpts starting with the April issue.

Court addresses use of asset approach for a going concern

Many valuation experts rarely (or never) use the asset approach for an operating business. But this approach may be more applicable than you might think.

New case: The Supreme Court in Nebraska has found that the proper premise of value for an operating business was going concern and the proper methodology was the asset approach. The business sells and services farm equipment. The court noted that the expert referred to a “well known valuation expert” who states that the asset-based approach can be used with the going-concern premise of value. (Coincidentally, a 2020 article in Business Valuation Update refers to a well-known valuation expert discussing this very topic.)

There are more valuation issues in the case, including the definition of fair value and the treatment of built-in gains taxes. The case is Bohac v. Benes Serv. Co., 310 Neb. 722; 2022 Neb. LEXIS 5. A case analysis and full opinion are available on the BVLaw platform.

Valuation standards needed for digital assets

“An agreed-upon reliable valuation method does not exist for cryptocurrencies in 2022,” say the authors of a new paper, “Digital Asset Valuation.” This has led to uncertainty and confusion among investors and managers. The paper evaluates the existing asset valuation methods and their limited application to digital assets before contrasting new and evolving digital asset valuation trends. The authors conclude: “The industry would benefit from uniform standards for digital asset valuation.” The paper’s authors are Wulf A. Kaal (University of St. Thomas, Minnesota—School of Law), Samuel Evans (PricewaterhouseCoopers LLP), and Hayley Howe (Emerging Technology Association).

Trademark values and useful lives for bikes

The average royalty rate for the trademarks of bikes is 3.8%, according to data from MARKABLES. Bikes include bicycles, motorbikes, and similar items such as scooters, mopeds, and even indoor fitness bikes. The vast majority (84%) of bike trademarks have an indefinite useful life. For those with a definite useful life (16%), the average is 13.3 years. MARKABLES is a Switzerland firm that has a database of over 13,000 global trademark valuations published in financial reporting documents of listed companies. In addition to trademark-related data, MARKABLES offers data on customer relations and goodwill. From spring 2022, the firm will add data on software and technology to its data offerings.

ASA launches new website

The American Society of Appraisers (ASA) has launched a “newly refreshed” website ( designed to be faster, easier to navigate, and more user-friendly. The home page is certainly eye-catching, and it provides quick access to the online resources most popular with its members. The home page has a Latest News crawl and links to the various disciplines in which its members practice: personal property, business valuation, real property, machinery and technical specialties, gems and jewelry, and appraisal review and management. If you click on a specific discipline, you’ll find credentialing information, educational offerings, publications, news, and more. Check it out!

Reminder: Feedback wanted on company-level beta module for the Navigator

Kroll (formerly Duff & Phelps) is developing a new module for its Cost of Capital Navigator that will enable users to derive company-level betas based on their own selection of comparable companies. During a recent BVR webinar, Carla Nunes and Jim Harrington (both with Kroll) mentioned that they are conducting a survey to help determine what features should be included in the new module. Please take the survey at Thank you!

Global BV News

CBV Institute prexy on BV profession challenges

The influx of automated valuation models and the demand for accredited professionals are two major challenges the business valuation profession faces, says Christine Sawchuk, president and CEO of the CBV Institute, Canada’s valuation professional organization (VPO), in an interview. The proliferation of automated tools allows more individuals to offer valuation services, but they may not be qualified to do so. “While such technologies can be used as tools to support decision-making and communication, they cannot replace critical thought and professional analysis to achieve the most informed view for business decision-making,” she says

She also observes that market demand for professionals accredited in business valuation is currently at an all-time high. “While this is excellent news for growth in the valuation profession, particularly amongst young professionals, it may be an ongoing challenge for us and other VPOs to keep reinforcing to the market that formal valuation education and accreditation is a professional imperative, and in the public interest,” she says.

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