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February 1, 2018 |   NACVA  |   CTI  |    |   The Surprising Role of Client Education in Closing New Business Deals Client education can have a huge impact in accounting and professional service firms’ content marketing efforts.  By providing prospects with increasingly valuable pieces of educational content, you can not only attract them to your firm, but also nurture them as they move into and through your sales funnel. Read more» Why All Values Are Not Created Equal: Understanding Terms and Bridging a Potential Valuation Gap It is not uncommon for litigation to stem from disagreements over the value of privately held companies and ownership interests in those entities.  In those situations, many different values are often discussed as the parties attempt to reach a resolution.  It is important to make sure that the parties are speaking the same language as far as the type of value being considered—equity value, enterprise value or invested capital value.  While these three types of value are related, there are significant differences between them and understanding those differences is important in reaching a fair resolution.  In his article, the author walks through the differences in equity, enterprise, and invested capital value he shares with attorneys and views as additional tools to effectively navigate valuation-related disputes and negotiations. Read more» In Case You Missed It: Discount Rates in a Purchase Price Allocation: Understanding the nature and risk of expected cash flow This discussion summarizes the interrelatedness of the weighted average cost of capital and the weighted average return on assets within the context of a purchase price allocation for financial reporting purposes. Failure to understand this fundamental relationship can lead to inaccurate estimates of value for the acquired assets and, therefore, inaccurate reported asset values and amortization expense on the financial statements of the acquirer. The WACC can be viewed as a weighted average of the required rates of return for the individual assets of the acquired company. The selected intangible asset rates of return should be reviewed for reasonableness through a weighted average return on assets analysis. Understanding the nature and risk of the expected cash flow (of the enterprise and specific assets) is important to ensuring consistency throughout the analysis. Read more» The Asset-Based Valuation Approach: Common Analyst Misconceptions The first article in this series provided an introduction to valuation analysts (analyst) regarding the need to integrate and use the Asset-based Approach to value going-concern businesses and securities. This second installment addresses common analyst misconceptions regarding the use of the Asset-based Approach to value both asset holding companies and operating companies. Read more» QuickReadBuzz AARP Wants Prospective Clients to put Advisors on the Record The Retiree’s Cost of Care Barometer Managing the Unique Needs of Ultra-High-Net-Worth Clients