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A recent poll shows that 87% of business valuation professionals have explored the use of artificial intelligence (AI) in their practices, with many believing that AI will have a significant impact on their work in the long term. However, experts at a virtual conference stress that AI should be viewed as a tool to enhance efficiency and effectiveness, rather than replacing professional judgment. The article discusses the importance of designing effective prompts for AI tools and explores how AI affects the valuation of companies, suggesting that the discounted cash flow (DCF) method is best for valuing companies impacted by AI. It also highlights the use of AI in marketing, specifically in generating content for various media platforms, providing examples of how AI can create written content and produce videos. The article concludes by mentioning additional resources available on AI in business valuation. [Extracted from the article]

This article discusses the use of a high discount rate in determining the enterprise value of early-stage companies. The author presents a case study of a biotechnology company with no historical revenues and negative cash flows. Due to the uncertainties surrounding the company's future, a high discount rate is recommended to account for the risk. The article also provides guidance on selecting an appropriate discount rate based on the stage of development of the company. [Extracted from the article]

This article discusses the recent developments and focus areas of the IRS in relation to tax valuations. The author, Michael Gregory, who has extensive experience at the IRS, highlights key issues that the agency is currently focusing on, including discount for lack of marketability, assumptions and limiting conditions, subchapter S tax affecting, reasonable compensation, cash flow and discount rate, and math errors. Gregory also mentions the importance of staying updated on emerging models and the scrutiny faced by famous names in the estate and gift area. Additionally, the article mentions the hiring plans of the IRS and the potential impact on efficiency rates. Readers interested in more information can visit Gregory's blog for regular updates on IRS-related topics. [Extracted from the article]

The article discusses a tax dispute appealed in the U.S. Supreme Court by an owner of a waste to energy plant. Topics covered include the facts of the case, the argument by the owner that the trial court's categorical rejection of the discounted cash flow (DCF) approach for tax assessment purposes was improper, and the highest court's ruling on the expert testimony that said the best way to value a waste to energy plant was the DCF method.

The article discusses several business valuation court cases. The cases involved the use of the merger price, rather than the value resulting from the discounted cash flow, as the most reliable indicator of the fair value of the company subject to merger and the application and the application of an industry risk premium in the discount calculation. Rejection of the use of the discount for lack of marketability in the valuation process in the context of divorce is mentioned.

The article analyzes the survey done on October 17, 2012 by the publication "Business Valuation Wire" that asked about different valuation issues, with a particular focus on the elements of the discounted cash flow method. It displays the results to various questions, discusses the meaning of the results to the valuation community, and gives advice to the readers on how to further improve their knowledge and skills on the topic.

The article discusses opinions by the Delaware Court of Chancery on company-specific risk premium's inclusion in equity cost for valuation analysis using the discounted cash flow (DCF) methodology. Topics covered include the reliability of company-specific risk adjustments, the susceptibility of company-specific risk estimations to misuse, and the potential built-in bias in analysis. Court cases include Union Illinois vs. Korte, Hintmann vs. Fred Weber Inc., and Onti Inc. vs. Integra Bank.

The article features the discussion on fairness opinions in affiliated party transactions in the U.S. It notes that the Financial Industry Regulatory Authority (FINRA) regulates business firms who are conducting business with the public and its Rule 5150 requires these firms to have written procedures prior to the approval of the fairness opinion. There are several methods used to determine fairness in valuation such as discounted cash flow, guideline companies, and guideline transactions.