2018 ASA Advanced Business Valuation Conference Notes

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I just returned from the 2018 American Society of Appraisers Advanced Business Valuation and International Appraisers Conference held in Anaheim, California.  The conference was held at the Anaheim Hilton, which is a stone’s throw from Disneyland.

I presented twice at the conference, first in a panel and then solo.

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Active/Passive Considerations in Divorce

The panel included William Dameworth, Jay Fishman, and Dr. Ashok Abbot, as well as myself.  We talked about the nature of the issue of whether appreciation in the value of assets owned by a party prior to marriage is “active” or “passive” over the duration of the marriage.

There are no cookbook answers to questions about active vs. passive appreciation, so we discussed a few methods that have been tried in court with varying degrees of success.

The same panel (sans Fishman for scheduling reasons) will present at the 2018 AICPA Forensic and Valuation Services Conference to be held in Atlanta next month.

Single Period Capitalization of EBITDA

My second session involved a presentation of a new (fairly) method for capitalizing EBITDA in a single-period model.  I’ve written and spoken about this topic before, and the idea seems to be catching on with appraisers around the country.

In addition to presenting the model, I also provided the results of research on a key component of the model, the EBITDA Depreciation Factor.  The research examines this relationship between EBITDA and EBIT over several years for a variety of private and public company industry groups.

The overheads for this presentation are available here.

If you would like a copy of the Business Valuation Review article giving rise to the EBITDA presentation, click here.

If you have any questions about either of these presentations, do not hesitate to contact me at mercerc@mercercapital.com or 901-685-2120.

In the meantime, be well!

Chris

Please note: I reserve the right to delete comments that are offensive or off-topic.

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