News, Resources and Updates

Calibration and OPM Techniques in the Valuation of Early Stage Enterprises

How can Calibration with Option Pricing Models be applied to the valuation of equity interests in a portfolio company based on the latest round of financing? See our articles in the Business Valuation Update (BVR) on this topic. The article is based on Case 9 in the AICPA Guide on the Valuation of Portfolio Investments of Venture Capital and Private Equity Funds and Other Investment Companies. We provide practical examples of calibration at initial measurement and subsequent measurement periods under ASC 820.

Read More
Appraisal Foundation: Final Version of Guidance on the Valuation of Contingent Consideration has been released

In February 2019, the Appraisal Foundation has released the final version of the Valuation in Financial Reporting Valuation Advisory #4 on the Valuation of Contingent Consideration. The new guidance highlights the use of scenario-based methods and of option pricing methods in the valuation of contingent consideration. The guidance sets the stage for a more extensive use of OPM modelling techniques in the valuation of contingent considerations and of Monte Carlo simulation if the payoff structure is path dependent or is based on multiple independent metrics.

Read More
BlueVal Group participates in CFA Italy’s Guide to Alternative Investments

BlueVal Group LLC is glad to announce the release of a Guide to Alternative Investments published by CFA Society Italy in collaboration with Advisor Private and Lazard Fund Managers, which includes our contribution with chapters on "Hedge Funds" and "Private Equity". The Guide analyses recent trends in alternative investments, with an emphasis on the private markets and illiquid solutions.

Read More
ResourcesAndreas Dal Santo
IPEV Guidelines: Final Version of International Private Equity and Venture Capital Valuation Guidelines has been released.

In December 2018, the International Private Equity and Venture Capital Valuation Guidelines Board has released the final version of the International Private Equity and Venture Capital Valuation Guidelines. The Valuation Guidelines were last updated in 2015 and the recent update reflects the continued experience of industry practitioners applying IFRS 13 and ASC Topic 820 (US GAAP) as well as incorporating other valuation guidance such as that reflected in the working draft of the AICPA's Guide to the Valuation of Portfolio Company Investments.

Read More
BlueVal Group to Participate in BVR Webinar on Valuation of Private Debt Investments:

BlueVal Group, a provider of business valuation services with a specialty in the valuation of privately-held companies and intangible assets, will present as part of a Business Valuation Resources (BVR) webinar, “The Valuation of Private Debt Investments: A Fair Value Update” BlueVal Group’s Andreas Dal Santo and Antonella Puca will be part of the webinar, which runs from 1:00 p.m. to 2:40 p.m. ET on Tuesday, February 12, 2019.

Read More
ResourcesAndreas Dal Santo
PCAOB releases new standard on “Auditing Accounting Estimates, Including Fair Value Measurement” (AS 2501)

On December 20, 2018, the PCAOB adopted a new standard on “Auditing Accounting Estimates, Including Fair Value Measurement” (“new” ASC 2501). The standard replaces the “old” AS 2501 and rescinds AS 2502 and AS 2503. The PCAOB also amended a number of other PCAOB auditing standards which refer to accounting estimates to reflect the new guidance.

Read More
AICPA: New Case Studies included in the Working Draft of the Guide to the Valuation of PE/VC Investments in Portfolio Companies

On December 17, 2018, the AICPA issued a working draft of a new case study of an “Investment in Non-Performing Distressed Debt” (Investment 6 - Case Study 13) in its "Accounting and Valuation Guide: Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies". Investment 6 illustrates the valuation of an investment in distressed debt by a business development company from the initial transaction through subsequent measurement dates.

Read More
AICPA: Working Draft on Inventory Valuation Guidance out for public comment

On November 19, 2018, the AICPA has issued an early working draft of the Inventory Valuation Guidance as part of a broader forthcoming release of the AICPA’s Business Combinations Accounting and Valuation Guide. This working draft provides nonauthoritative guidance and illustrations for preparers of financial statements, independent auditors, and valuation specialists regarding how to estimate the fair value of inventory acquired in a business combination in accordance with Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurement.

Read More
BlueVal Group to Participate in BVR Webinar on Valuation of Early Stage Enterprises

BlueVal Group, a provider of business valuation services with a specialty in the valuation of privately-held companies and intangible assets, will present as part of a Business Valuation Resources (BVR) webinar, “The Valuation of Early Stage Enterprises: A Fair Value Update” BlueVal Group’s Andreas Dal Santo and Antonella Puca will be part of the webinar, which runs from 1:00 p.m. to 2:40 p.m. ET on Tuesday, December 18, 2018.

Read More
ResourcesAndreas Dal Santo
AICPA: Working Draft – Accounting and Valuation Guide: Valuation of Portfolio Company Investments of VC and PE Funds

In mid-May, the AICPA issued a working draft of an "Accounting and Valuation Guide: Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies". The Guide, developed by the AICPA PE/VC Task Force, provides guidance and illustrations for preparers of financial statements, auditors and valuation specialists.

Read More