Analysis: Data suggest earnings multiples are too low
Investors might have reason to expect big growth in either Treasury yields or earnings multiples for the Standard & Poor's 500 index in the near future, according to this analysis. There is significant deviation in the relationship between the 10-year Treasury and stock multiples compared with the norm during the past 50 years. A correction could lead to a surge in the S&P 500. Seeking Alpha (free registration)
5 mistakes that can sink your company's value
Past performance and higher sales don't always translate to increased value. Focusing on growth or acquisitions for the wrong reasons can undermine a business' strengths as much as neglecting the balance sheet or having a confusing ownership structure. Another mistake is waiting too long to enter an acquisition and being forced to take a lower price. GigaOm
Small-business owners are hurt by shoddy valuation
The average small-business owner is off by about 60% on the value of his or her company, valuation firm Spardata said. It's not enough to compare one company with others in its industry -- each business needs a detailed appraisal based on its financial condition, Spardata said. Getting it wrong can undermine an owner's retirement and estate planning and cause the person to accept too little when it comes time to sell. The Washington Post (tiered subscription model)
How venture capital is causing a form of Internet bubble
Venture capital firms are fueling a bubble in valuation of Internet startups, according to this article. The reason is that it makes sense to pay more to invest in market leaders. However, many investors are diving in too soon and pumping cash into companies that have yet to prove their worth. CNNMoney/Fortune
Upcoming FVS Web seminars
FVS Section members can attend for free without optional continuing professional education or may purchase discounted CPE. For more information on this option, contact FVS@aicpa.org.
Register: AICPA/AAML Conference on Divorce
The 2012 AICPA/AAML National Conference on Divorce, scheduled May 10 and 11 in Las Vegas, is an intensive program that will provide innovative ideas and timely solutions to help you succeed in myriad circumstances: settle cases, value businesses, split marital assets, identify fraud, utilize electronic discovery and evidence, locate foreign assets and develop strategies to handle high-profile and unique cases. Register!
AICPA National Forensic Accounting Conference and AICPA National Business Valuation Conference will be co-located in November
The AICPA Forensic & Valuation Services Conference will combine the AICPA National Forensic Accounting Conference and the AICPA National Business Valuation Conference. Professionals in forensic accounting and business valuation can attend sessions from either, closely related discipline. Attendees will learn how to apply complex analytical techniques, scrutinize consumers' online transactions, explore public databases, conduct advanced interviews, face video depositions, analyze written statements and receive updates on fair value, cost of capital, goodwill and size premium. Register to receive super-early-bird savings! FVS Section members save $100.
|About the Forensic and Valuation Services Section
Forensic and Valuation Services Section
is designed to provide CPAs
with a vast array of resources, tools and information about forensic and
valuation services. The FVS Section serves CPAs who hold the Accredited in
Business Valuation and Certified in Financial Forensics specialty credentials,
members of the FVS Section, AICPA members and others.
About the Accredited in Business Valuation Credential:
Accredited in Business Valuation
program provides specialized access to
information, education, tools and support that enhance credential holders'
ability to make a genuine difference for their clients and employers.
ABV credential holders may brand or position themselves as premier business
valuation service providers who differentiate themselves by going beyond the
core service of reaching a conclusion of value and creating value for clients
through the strategic application of this analysis.
About the Certified in Financial Forensics Credential:
Certified in Financial Forensics
credential combines specialized forensic accounting expertise with the core
knowledge and skills that make CPAs among the most trusted experts. The CFF credential
encompasses fundamental and specialized forensic accounting skills that CPA
practitioners apply in a variety of service areas, including: bankruptcy and
insolvency; computer forensics; economic damages; family law; fraud investigations;
litigation support; stakeholder disputes and valuations. To qualify, a CPA must be an
AICPA member in good standing, have at least five years of experience in practicing
accounting, and meet minimum requirements in relevant business experience and
continuing professional education.
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