Archive 2022-164: Hardball with Hitchner, Gallagher, and Mercer

**Webinar 164: Live Broadcast Date: March 1, 2022, 1:00-3:00 pm EST**

VPS StraightTalk Webinar Series: Hardball with Hitchner, Gallagher, and Mercer

Moderator: Jim Hitchner, CPA/ABV/CFF
Presenters: Michelle Gallagher, CPA/ABV/CFF and Z. Christopher Mercer, FASA, CFA, ABAR

This webinar will address the impact on business valuation for tax reporting associated with the IRS and the agency’s stance on certain technical issues. It will provide practical advice on how to avoid an IRS audit and offer recommendations on how to respond for a successful resolution. Jim Hitchner, Michelle Gallagher, and Chris Mercer take on your tough questions on business valuation topics, including cost of capital, DLOMs, S corps, transaction databases, and reports. This is your chance to have your questions answered by key thought leaders in our profession.

Learning Objectives:
The participant will learn:

• What three top experienced valuation leaders think are the proper and practical ways to prepare a valuation
• How to wade through all the confusion in estimating cost of capital and capitalization rates
• The proper application of discounts and premiums
• What is going on in the S-corp valuation area
• The best way to use transaction databases
• How to prepare the right report for the right situation

Webinar Outline:
Our panel will address the following topics and will also answer your specific questions:

Cost of capital questions

• Should I use D&P supply-side, historical, adjusted, unadjusted, conditional, or unconditional ERPs?
• Does the addition of a size premium preclude the use of a DLOM?
• Can I use CRSP size 10a, 10b, 10w, 10x, 10y, or 10z?
• How do I use industry risk premiums?

Discounts for lack of marketability (DLOM) questions

• Should I be using restricted stock databases such as Stout?
• Can I still rely upon traditional restricted stock “benchmark” studies?
• Should I be using pre-IPO data?
• What is the best way to use the QMDM?
• Should I be using option models in calculating a DLOM?

S-corp questions

• What is the current thinking in valuing S corps?
• Transaction databases questions
• What is the best way to use guideline company transactions from the various databases, particularly DealStats?
• Are these transaction databases reliable?

BV report questions

• When can I use calculation engagements and reports and summary reports?
• How do I adhere to BV reporting standards (AICPA, ASA, IBA, NACVA, and USPAP)?
• How do I cite references for definitions, concepts, and applications?

Handouts

• Access to a video recording of the program.