Monday, October 14, 2013

BVR/SPU Valuation Challenge Update

Over the past two weeks four more universities have joined the 2014 Valuation Challenge.  Only six more opportunities to participate remain.  Here are the 18 current entrants:


Anderson University
California State University, Northridge
City University of New York (CUNY)
Friends University
Harding University
Middle Tennessee State University
Ohio Wesleyan University
Pacific Lutheran University
Portland State University
Salisbury University
San Francisco State University
Seattle Pacific University
University of Denver
University of North Florida
University of Oregon
University of Tennessee
Wesleyan University
William Paterson University

Wednesday, October 9, 2013

The Valuation Challenge 2014 Guidelines

Here are the guidelines for valuing the 2014 Valuation Challenge Case, ABC Engineering:

Governing Standard:  Revenue Ruling 59-60

Purpose:  Employee Stock Ownership Plan and Trust valuation for administrative purposes and stock transactions

Standard of Value:  Fair Market Value

Premise of Value:  Value as a going concern

Client Name:  Trustees of the Employee Stock Ownership Plan

Business Name:  ABC Engineering, Inc.

Type of Entity:  S Corporation

State of Incorporation:  Washington, USA

Principal Business Location:  Somewhere, USA

Business Interest Valued:  20%

Valuation Date:  December 31, 2012

Report Date:  May 9, 2014

Appraiser Name:  School of Business Team

Appraiser Firm:  University

Characteristics of Ownership:  Non-controlling (minority)

Minority Discount:  Include

Marketability Discount:  Include


Monday, September 30, 2013

BVR/SPU Valuation Challenge Participant List As Of 9/30/2013


The 2014 BVR/SPU Valuation Challenge participant pool will be full when representatives from ten more universities and colleges email hkierulf@spu.edu stating their intent to participate.  To clarify, it is not necessary to have formed a student team to notify us of your intent.  Over the last few weeks, the following universities have joined us:

Anderson University
California State University, Northridge
City University of New York (CUNY)
Harding University
Middle Tennessee State University
Ohio Wesleyan University
Portland State University
Salisbury University
Seattle Pacific University
University of Denver
University of North Florida
University of Oregon
University of Tennessee
Wesleyan University

Monday, September 23, 2013

Why the Blog Site for the BVR/SPU Valuation Challenge?



I started this blog site with two objectives in mind.  First, I wanted to support the BVR/SPU Valuation Challenge by providing an outlet for conversations about valuing asset combinations not traded on public markets.  These combinations can be anything from companies (new and old) to divisions and business units of companies, potential spin-outs, joint ventures, and similar asset groupings.  Students and others learning or thinking about this fascinating topic have questions—questions about the competition itself, but more broadly, questions about conceptual and technical issues in this field.  Still others have answers to these questions, or at least ideas that can contribute to a deeper understanding of the issues.  So I hope this can be a place for information exchanges, lively and otherwise.

The second objective is to feature the participants and schools involved in the Challenge.  What colleges and universities are providing course work or independent study opportunities in asset valuation and how are they doing it?  What are the challenges involved in teaching and learning in this field and what works best to transfer knowledge?

Your thoughts are welcome.  I hope you join in!