Signed, sealed, delivered: BV 101: learn how an M&A valuation engagement develops to see if BV is for you.A CPA/valuator familiar with merger and acquisition (M&A) transactions can be a tremendous asset to a client, bringing into focus facts that help bridge the needs of both buyers and sellers. To perform business valuation in M&A, you work with management to research and analyze information, prepare reports and advise on the pros and cons pros and cons Noun, pl the advantages and disadvantages of a situation [Latin pro for + con(tra) against] of different choices. Besides establishing an objective marketplace value for a client's business, you organize the overall process, mitigate trouble spots and structure the deal along with attorneys, appraisers, bankers, financiers and regulators. Both buyers and sellers hire teams of several professionals to represent them, and the cast of characters can be quite large. In BV, CPAs also perform due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. and preparation of pro forma financial statements Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. , analysis and financial projections. This article describes what a CPA/valuator does in the M&A valuation advisory process from the earliest point--primarily from the buyer's perspective. In doing so, it reveals junctures at which different types of CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. skills come into play. CPAs who want to develop BV skills need training and credentials, available from a number of sources (see "Train to Be an ABV ABV Above ABV Alcohol By Volume ABV Abuja, Nigeria (airport code) ABV Assault Breacher Vehicle ABV Accredited Business Valuation specialist ABV Auxiliary Building Ventilation ABV Annual Buy Value ABV Air Bleed Valve ," page 31, and "Resources" page 36). THE BASICS A buyer needs to be clear about what it hopes to gain in a merger or acquisition. As valuator for the buyer, your role may require you to work with the client to refine its goals and develop a well-defined set of criteria for suitable candidates (see "Buyer's Analysis Checklist," page 34). Screening for the right target is like pouring specifications into a giant funnel--you start with a universe of all the businesses in the marketplace and gradually narrow the number to a few and then to one that meets the client's objectives. Buyers may commission a CPA/valuator as soon as they decide to acquire a business, or they may call in help later. Sellers might not use one until they get an offer. The order and degree of effort may vary, but here's what you would do in a merger or acquisition. * Identify an acquisition target. * Find out whether it's interested. * Perform an in-depth analysis and review. * Price the transaction. * Structure it (as a merger, acquisition or asset swap Asset Swap Similar in structure to a plain vanilla swap, the key difference is the underlying of the swap contract. Rather than regular fixed and floating loan interest rates being swapped, fixed and floating investments are being exchanged. , for example). * Negotiate the final terms. * Obtain financing. * Close the deal. If a buyer already knows the acquisition candidate, it may prefer to go it alone. If not, the CPA/valuator can provide the client with strategic information, sources of capital, staff to dedicate ded·i·cate tr.v. ded·i·cat·ed, ded·i·cat·ing, ded·i·cates 1. To set apart for a deity or for religious purposes; consecrate. 2. to the project, independence from in-house political considerations and enough distance to preserve anonymity during initial overtures o·ver·ture n. 1. Music a. An instrumental composition intended especially as an introduction to an extended work, such as an opera or oratorio. b. . Brokers may offer a range of prospective sellers too, so many companies use brokers to identify deals and advisers such as CPAs to analyze them. CPA/valuators charge on a contingent, fixed-fee, hourly or per diem per diem adj. or n. Latin for "per day," it is short for payment of daily expenses and/or fees of an employee or an agent. basis or some combination. They find out the scope of services the client wants and specify the basis on which fees will be paid and whether the arrangement is exclusive. They draft an engagement letter that spells out the details and clearly defines "transaction value" (which likely will determine the amount they are paid). Contingent compensation by itself can create a conflict of interest for a seller's intermediary, influencing it to recommend closing a deal too quickly. THE HUNT Once you know what the client wants to accomplish, your next step is to discover what businesses are available and rate their suitability. There are a number of ways to go about it. Acquisition leads. Investment opportunities include publicly held and privately held companies privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , divestitures from diversified companies diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a , purchases of partial or minority interests, liquidations of assets and venture capital investments. You can start an acquisition search by' consulting Moody's, Standard & Poor's and D&B; industry publications such as trade association directories and product catalogs; company data such as annual reports and SEC filings; online databases; and people including management, sales staff, industry specialists and others knowledgeable about potential areas. Databases. Most companies are closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. , so buyers' intermediaries use databases to identify targets. Databases don't necessarily have information on the same companies, and because industrial classification codes differ among them, data may be organized differently for the ones they list in common. Databases are good for early screening, but none is perfect. Compensate by using several. Sites such as mmuree.org and BVMarketData.eom offer extensive leads. [GRAPHIC OMITTED] Candidates. Once you provide your client with a manageable pool of candidates, you must rank their overall desirability. To value essential criteria, use a weighting system, assigning points for factors such as a target's main business, geographical concentration of sales, transportation access, reputation, sales volume, profitability and other important features. For example, a chemicals manufacturer that needs storage terminals would give more points to a facility close to a preferred rail line than to one less desirably located. Purchase price. This of course depends on the individual target, where it is in its life cycle and the health of its industry. In general, companies sell for a percentage of annual sales volume. For a manufacturer this might be 30% of sales, and for a service business, it might be 100% of sales. Whatever the amount, the buyer should be prepared to put down at least 20% to 25%. Transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). can add more than 5%, and the buyer will incur significant closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, even if the deal derails. Regulations. Most transactions are subject to some degree of regulation. For smaller ones, that may consist of little more than filing property-transfer deeds and income tax forms. More complex deals may be subject to the scrutiny of the SEC, Federal Trade Commission and state or industry regulators. Be aware of which regulations apply. (For more information, see "Looking at Mergers the Way Federal Regulators Do" JofA, Dec.99, page 59.) ANGLE OF APPROACH It's best if a mutual contact can introduce you to the target's owner. If not, you must make contact very discreetly to ask whether he or she would consider a sale; in many closely held businesses, the person running the company has devoted his or her life to it and doesn't want to feel vultures are circling overhead. Publicly held companies always are careful about M&A discussions, since the information must be disclosed. All companies will be concerned that rumors of a potential sale could disrupt business, affect their stock price and be misused or misinterpreted by customers, employees, suppliers or competitors. Before making an overture overture, instrumental musical composition written as an introduction to an opera, ballet, oratorio, musical, or play. The earliest Italian opera overtures were simply pieces of orchestral music and were called sinfonie. , you should have reason to believe the target might want to sell. Conditions such as a lack of management successors or a need to create liquidity for an estate are good indicators. A large company that wants to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. certain assets--which can happen quickly once a decision is made--usually is a motivated seller. OPEN WIDE AND SAY AHH AHH AllHipHop.com (website) AHH Aryl Hydrocarbon Hydroxylase AHH Arizona Heart Hospital AHH Ace's Happy Homepage AHH Adaptive Hard Handoff ... Once the two businesses are at the table, you need to confirm the target's financial and operational health (see "Profile the Target," page 34). This is the due diligence phase--the essential in-depth analysis that's the platform for negotiating final terms. Before the acquirer performs due diligence, it frequently will issue a nonbinding letter of intent. This preliminary agreement describes the buyer-seller understanding on a number of important features such as the bid price; the potential structure of the deal (purchase, merger, stock or asset transfer); the timing of due diligence and the closing; the acquirer's financing; and the responsibility for fees and expenses. Although buyer and seller invariably in·var·i·a·ble adj. Not changing or subject to change; constant. in·var  i·a·bil modify it as
negotiations continue, it's the basis for the transaction and keeps
both sides moving in the same direction.Proceed to due diligence. The different types of due diligence performed in M&A engagements include financial, operational and legal. During this stage, your role as CPA/valuator is to * Identify items that could break the deal (hidden liabilities). * Verify the accuracy of the seller's information. * Obtain a detailed understanding of the business. * Develop information that will be vital to negotiating the transaction, obtaining financing, getting board approval, establishing the tax and accounting basis of the assets and integrating the acquired entity into the buyer's business. In due diligence the CPA/valuator searches for sufficient information to enable the buyer to decide whether to complete the transaction. You look for details about appraisals, contracts, customer information, loan agreements, accounting and other important data--such as proprietary technology or processes in the industry, exclusive contracts with suppliers or customers and ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9000 approval. If you have questions about technical issues such as environmental problems or pension obligations, you may have to bring in qualified experts to review those areas. You also may recommend the buyer bring in auditors to review the financial statements. Be discreet. To complete the due diligence process, you'll spend time in the seller's workplace. Keep a low profile. The target's management is one of the most overlooked assets in an acquisition (often harder to obtain than investment financing), and preventing needed employees from bolting is important to a deal's viability. Staff members who learn their company is being sold often assume they'll be out of work when the sale is complete. Talk about the company's plans only to those who need to know. (Note: Management of a publicly held company cannot protect its privacy by deceiving the public about whether it is for sale.) Sometimes a seller forbids inquiry into certain areas, particularly during preliminary due diligence. If the information can wait, fine. But if a target is unwilling to provide it even later on, advise the acquirer to walk away from the deal. It isn't unusual for a seller to have a prospective buyer sign a confidentiality agreement before it shares company data. It may even insist on the return of all materials, including notes and copies of documents, in the event the transaction falls through. It's important not to sign anything that can't be honored. Both sides may need reassurance. A detailed due diligence program can be costly. Besides out-of-pocket expenses out-of-pocket expenses n. moneys paid directly for necessary items by a contractor, trustee, executor, administrator or any person responsible to cover expenses not detailed by agreement. , there's the time it takes personnel to provide and review information. For that reason, buyers or sellers sometimes require breakup fees breakup fee A provision in a takeover agreement that requires a firm to pay the investment banker a large sum of money if another firm takes over the target company. A breakup fee tends to discourage other firms from making bids for the target. to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. them in the event the other party withdraws. To discourage nonserious buyers, sellers often ask buyers for a nonrefundable deposit as evidence of good faith. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , some buyers may demand a commitment fee from the seller after signing a letter of intent. There aren't any set rules about this. If you're working for the target company, perform due diligence on the buyer, as well. The seller needs to confirm the buyer has the financial capacity and strategic incentive to purchase the company. Look at a buyer's financial statements, interview its senior management to get a feel for its character and motives, and tour the buyer's facilities. FINALLY ... THE PRICE The standard definition of fair market value is the cash price at which property changes hands between a knowledgeable buyer and a seller under no duress duress (dy  `rĭs, d`–, d . Valuation methods set price expectations, but a
business is worth only as much as somebody is willing to pay for it.
Price ultimately depends on the negotiating skills of the buyer and
seller. The process described so far is the groundwork CPA/valuators use
to find a solid basis of value for the businesses in play.The three main approaches to valuing businesses are the market approach (what other people have paid for similar businesses), the asset-based approach (what the equipment and real estate are worth) and the income approach (how much money a buyer could make from the business). These approaches encompass a number of methods such as guideline-company, transactional, adjusted-book-value, capitalization-of-benefits, discounted-benefits and leveraged-buyout methods. Each one has advantages and disadvantages. There's ample guidance on widely used valuation formulas (for more information, see "Resources," page 36). When the buyer and seller agree on price, it's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to address the structure of the trade. This is where differences between a merger and an acquisition come up. In a merger, both parties to the transaction wind up with common stock in a single merged entity. In an acquisition, the buyer purchases the common stock or assets of the seller. (See "Differences Between Mergers and Acquisitions" page 38.) SET THE TERMS A major objective in structuring a deal is to create a transaction that appears to meet the seller's price expectations, on terms and within constraints that are suitable to the buyer. If the terms are right for the buyer, the price will not matter. Once buyer and seller agree on the amount and structure of the trade, the next issue is how the buyer will compensate the seller before handing off the business. Payment can be cash, common stock, a special class of common stock, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , installment payments Installment payments Distribution of plan assets to beneficiaries based upon a regular schedule. , earnout payments, options or warrants and/or convertible securities. Cash is easiest. Payment in common stock of a closely held company Closely held company A company who has a small group of controlling shareholders. In contrast, a widely-held firm has many shareholders. It is difficult or impossible to wage a proxy battle for any closely-held firm. raises a valuation question: The seller must evaluate the future prospects of the buyer. Additional questions arise with respect to voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. , liquidity and rights of first refusal if shareholders plan to sell their stock at a later date. Earnout payments, options, warrants or convertible securities often are used to bridge the parties' different levels of risk tolerance Risk Tolerance The degree of uncertainty that an investor can handle in regards to a negative change in the value of their portfolio. Notes: An investor's risk tolerance varies according to age, income requirements, financial goals, etc. . Their value is linked to future performance: The buyer makes earnout payments to the seller in future periods if the company achieves predefined goals based on revenues, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income or cash flow. Several other factors influence the transaction. Make sure any deal covers * Terms of payout. * Employment contracts. * Management-consulting arrangements if applicable. * Noncompete agreements A contract limiting a party from competing with a business after termination of employment or completion of a business sale. Found in some business contracts, noncompete agreements are designed to protect a business owner's investment by restricting potential competition. . * Allowing the seller to retain a partial interest in the company. * Agreements to lease property from the seller or to conduct business with entities related to the seller. * Postacquisition adjustments to increase or reduce the purchase price, based on factors such as audited inventory or accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying collections. * Escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money that are released only on certain terms and conditions. * Indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from provisions. OFFER EXCELLENT SERVICE A CPA adviser who has valuation expertise and is familiar with the M&A process can be an invaluable resource to a client, offering value and security by understanding the client's business goals, analyzing how to attain them and helping to steer a transaction toward a profitable and well-structured outcome. To choose the right methods and standards for a valuation engagement is a responsibility that starts with understanding the entity you represent--and ensuring you have adequate expertise to do the job well. The AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Code of Professional Conduct requires members to provide only services they can complete with professional competence, and CPA/valuators also must comply with the professional and technical standards under the Statement on Standards for Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . Training is the essential step to opening a door to interesting, profitable valuation engagements. In this article, the terms valuator/intermediary/adviser, buyer/acquirer and seller/target are used interchangeably INTERCHANGEABLY. Formerly when deeds of land were made, where there Were covenants to be performed on both sides, it was usual to make two deeds exactly similar to each other, and to exchange them; in the attesting clause, the words, In witness whereof the parties have hereunto . Train to Be an ABV Business valuation (BV) and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. services are among the fastest growing, most important consulting services offered by the top 100 accounting firms, says a recent survey in Accounting Today, and CPAs should consider how to participate in them. When a BV expert testifies before U.S. Tax Court Judge David Laro, his first consideration is the expert's qualifications. Judge Laro says a CPA who intends to practice BV should get the credentials, education and experience that impart credibility. The AICPA's Accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. in Business Valuation (ABV) designation is such a credential. CPAs who get it learn about valuations for mergers and acquisitions, marital dissolutions, estate and gift taxes A combined federal tax on transfers by gift or death. When property interests are given away during life or at death, taxes are imposed on the transfer. These taxes, known as estate and gift taxes, apply to the total transfers that an individual may make over a lifetime. , damages litigation, employee stock ownership plans (ESOPs) and many others. The AICPA's two core courses--Fundamentals of Business Valuation, Part I (FBV-I) and Fundamentals of Business Valuation, Part II (FBV-II)--provide in-depth, rigorous training. It's best to take FBV-I prior to FBV-II. Each three-day course is taught by valuation professionals and offers interactive participation. FBV-I is an overview of the valuation process, including the issues associated with defining the interest to be valued, the standard of value, the premise of value, who controls the business, its degree of marketability and other areas. The course focuses on the income approach, valuation research and quantitative and qualitative information analysis. FBV-II covers asset-based and market approaches to business valuation. Participants are taught valuation adjustments, such as discounts and premiums, to be able to reconcile multiple approaches and methods and determine a final value for a business. The program also covers report writing and expert-witness matters. A case study is woven into both halves of the FBV FBV Frequency Bias Value FBV Fuel Building Ventilation FBV French Bureau Veritas courses, so participants can integrate what they learn and apply the information in a complex, multipart valuation. After the foundation courses, ABV candidates can take the two-day ABV Review Course, often taught by scholars, authors and practitioners in the field. To ready candidates for the ABV exam, about one-third of the course is devoted to knowledge contained in the test's "Content Specification Outline." It's the only exam among those offered by the nation's leading business valuation organizations that defines the specific areas a candidate must know. The remaining two-thirds of the program readies participants for the test and includes a self-study workbook work·book n. 1. A booklet containing problems and exercises that a student may work directly on the pages. 2. A manual containing operating instructions, as for an appliance or machine. 3. of extended mock case studies. The practice problems simulate the ABV exam--currently held in early November of each year. For information about the ABV credential and the exam, go to the following AICPA Web page: http://www. aicpa.org/members/div/mcs/abv.htm. EXECUTIVE SUMMARY * A CPA/VALUATOR PLAYS A PIVOTAL ROLE in merger and acquisition (M&A) engagements. He or she helps to organize the transaction, mitigate trouble spots, establish an objective marketplace value for a client's business and structure the deal along with attorneys, appraisers, bankers, financiers and regulators. * A BUYER'S VALUATOR enters the process early and researches purchase opportunities, which include publicly held and privately held companies, divestitures from diversified companies, purchases of partial or minority interests, liquidations of assets and venture capital investments. * THE THREE MAIN APPROACHES to valuing businesses are the market approach (what other people have paid for similar businesses), the asset-based approach (what the equipment and real estate are worth) and the income approach (how much money a buyer could make from the business). Each one has tangential tan·gen·tial also tan·gen·tal adj. 1. Of, relating to, or moving along or in the direction of a tangent. 2. Merely touching or slightly connected. 3. considerations. * A TARGET MIGHT WANT TO SELL if it lacks management successors or needs to create liquidity for an estate. A large company making a divestiture--which can happen quickly once a decision is made--usually is a motivated seller. * CPAs ALSO PERFORM DUE DILIGENCE, tax planning, preparation of pro forma financial statements, analysis and financial projections. The trajectory of a BV engagement offers practitioners service opportunities at several junctures. * A MAJOR OBJECTIVE IN STRUCTURING A DEAL is to create a transaction that appears to meet the seller's price expectations, on terms and within constraints that are suitable to the buyer. The price will not matter if the terms are right for the buyer.
Buyer's Analysis Checklist
CPA/valuators can use answers to this set of questions as a starting
point to clarify the acquirer's present position and future goals.
* What are the motives for the
acquisition?
* Increased market share.
* Entry into a specific industry.
* Geographical diversification.
* Industry diversification.
* Product-line diversification.
* Elimination of a competitor.
* Solidifying a weak business.
* Bargain purchase price opportunity.
* Which businesses are unacceptable and
why?
* Purchase price.
* Size.
* Industries.
* Locations.
* Financial performance.
* Weak management.
* Management unwilling to stay.
* What are the available resources?
* Management.
* Capital for acquisitions.
* Future capital infusions.
* Administrative support.
* Surplus production capacity.
* What are our strengths and weaknesses?
* Management.
* Financial.
* Industry expertise.
* Marketing.
* What geographical region is or isn't
desirable for an acquisition?
* What size business is the company
interested in acquiring?
* Revenue.
* Purchase price.
* Number of branches/outlets/
stores/chains/plants.
* Assets.
* Head count.
* Indebtedness.
* What is the industry life cycle, and
where is it now?
* What is the product or service profile?
* Commodity.
* Unique. Proprietary.
* End product.
* Component or input.
* Covered by patent.
* Recurring purchase.
* Occasional purchase.
* Significant cost to customer.
* Significant element of customer's
end product.
* What will be the required capital
investment?
* Recurring requirements.
* Machinery and equipment.
* Facilities.
* Research and development.
Profile the Target
To determine whether an acquisition candidate is right for a buyer,
a CPA/valuator must gather information about the following.
General company features
* Background of company.
* Description of products or services.
* Key advantages and selling points.
* Financial highlights.
* Motive(s) for the proposed transaction.
* Structure of proposed transaction.
Products or services
* Description.
* Competitive strengths and weaknesses.
* Prices and unit volume.
* Brands and trademarks.
* Patent or copyright protection.
* Research and development.
* Regulatory issues.
* Licensing and royalty agreements.
Sales and marketing
* Industry profile.
* Competitive analysis by product and
geographical market.
* Seasonal characteristics.
* Product gross margins.
* Growth prospects.
* Geographical sales breakdown.
* Sales by customer categories.
* Sales backlog.
* Barriers to entry.
* Sales and marketing methods used.
* Standard terms of sale.
* Major contracts.
* Key customers.
* Sales force compensation.
* Physical distribution methods.
Purchasing and production
* Product ingredients.
* Suppliers and availability of
alternatives.
* Purchasing practices and procedures.
* Standard terms of purchase.
* Long-term purchase agreements.
* Overview of production process.
* Planning and scheduling.
* Quality control practices.
* Productivity data.
* Identification of unique or advantageous
production practices.
* Cost accounting methods used.
Business plan
* Description of business planning
process.
* Key elements of business plan.
* Revenue growth, cash-generating, cost-saving
and marketing opportunities.
* Financial projection highlights and
assumptions.
* Capital structure after the transaction.
Resources Organizations AICPA 1211 Avenue of the Americas New York, NY 10036 Mfeldman@aicpa.org; www.alelm.org For information on the ABV courses, see "Train to Be an ABV", page 31. For other courses and texts on business valuation, see the AICPA catalog or go to www.capa2biz biz n. Informal Business. biz Noun Informal business Noun 1. .com American Society of Appraisers (ASA) 555 Herndon Parkway, Suite 125 Herndon, Virginia 20170 www.appmlsers.org ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and offers eight training courses in BV services. CPAs with two years of appraisal experience and 134 years of BV experience can earn the Accredited Member designation. Practitioners with five years of appraisal experience and three years of BV experience can earn the Accredited Senior Appraiser A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property. Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market designation through a combination of training, testing and submission of past BV reports. Institute of Business Appraisers (IBA) P.O. Box 17410 Plantation, Florida 33318 www.instbusapp.org The IBA IBA abbr. International Bar Association IBA (in Britain) Independent Broadcasting Authority IBA n abbr (Brit) (= Independent Broadcasting Authority is a membership organization providing training and assistance to practitioners specializing in the appraisal of closely held businesses. IBA offers seminars, workshops, publications and practice aids. Well-known valuator Shannon Pratt teaches some of them. National Association of Certified Valuation Analysts (NACVA) * 1111 E. Brickyard Road, Suite 200 Salt Lake City, Utah 84105 www.nacva.com CPAs can earn the Certified Valuation Analyst designation by completing a five-day training course, passing a four-hour examination and preparing an extensive case study. The Appraisal Foundation 1029 Vermont Avenue, NW., Suite 900 Washington, D.C. 20005 www.appraisalfoundatlon.org The foundation promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. the appraisal standards known as the Uniform Standards of Professional Appraisal Practice Uniform Standards of Professional Appraisal Practice can be thought of as the quality control standards applicable for appraisal analysis and reports in the United States and its territories. (USPAP USPAP Uniform Standards of Professional Appraisal Practice ). Federal regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. require that BV reports provided to them comply with USPAP. Business valuation Web resource www.BVResources.com This is a Website with a variety of BV resources, including a useful list of "hot links." Recommended reading * Valuation for M&A: Building Value in Private Companies, by David M. Bishop and Frank C. Evans (John Wiley John Wiley may refer to:
* Guide to Business Valuations, by Jay E. Fishman, Shannon E Pratt, J. Clifford Griffith, D. Keith Wilson Keith Wilson can refer to:
* The Business of Business Valuations, by Gary Jones Gary Jones is the name of:
* The Synergy Trap: How Companies Lose the Acquisition Game, by Mark L. Sirower (Free Press division of Simon & Schuster Simon & Schuster U.S. publishing company. It was founded in 1924 by Richard L. Simon (1899–1960) and M. Lincoln Schuster (1897–1970), whose initial project, the original crossword-puzzle book, was a best-seller. , 1997). GARY R. TRUGMAN, CPA/ABV, is a principal of Trugman Valuation Associates Inc., a firm specializing in business valuation. He is the author of Understanding Business Valuation and A CPA's Guide to Valuing a Closely Held Business, both published by the AICPA. Mr. Trugman lectures nationally on BV topics. |
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