October 2026 - Listserv - listserv.ercllc.net

2026-2027 RMA Renewal - Reply to Confirm or Add by 10/28

by Jamie Badger

All - following are the participants who have shared in the cost of the RMA (eStatement Studies) subscription. The cost is dependent on the number of users. (Note: with this number of participants we had last year, the cost will be around $255/ea) Please reply by Wednesday 10/28 to confirm your renewal, or to sign up for this subscription. RMA Renewal List: Charlie Burak Leslie Dawson Robert Levis Sharyn Maggio Kevin Summers Jeffrey Urbach Clay Danielson Diane Womack Thank you, Jamie Badger Direct Dial: (517) 664-9386 Email: jbadger(a)gfkcpa.com<mailto:jbadger@gfkcpa.com>

Oct. 8, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Ron Seigneur

Surf to this link below to access the AICPA FVS AI resource. It is only available to FVS section members though. https://www.aicpa-cima.com/resources/landing/fvs-practice-ai-implementation… An announcement will go out tomorrow. Ron V-card<http://cpavalue.com/cfwebstore/email/Ronald%20L.%20Seigneur.vcf>| Web site<http://www.cpavalue.com/> | Bio<http://www.cpavalue.com/cfwebstore/index.cfm?fuseaction=feature.display&fea…> T 303.980.1111 D 720-665-9000 T 877.775.2676 F 303.308.6969 www.cpavalue.com<http://www.cpavalue.com/> [cid:image001.jpg@01DD5653.EA7D2FD0] Ron Seigneur MBA CPA/ABV ASA CVA Partner Ron.Seigneur(a)cpavalue.com<mailto:ron.seigneur@cpavalue.com> Seigneur Gustafson LLP 940 Wadsworth Blvd, Ste 200 Lakewood, Colorado 80214 Beyond the Number$ Click here<https://cpavalue.sharefile.com/r-rae8c2e26109748438e5529327a88b0a6> to send a secure file Thought for the quarter: “I used to have a handle on life, but it broke” – Anonymous Last quarters thought: "Choose to be optimistic, it feels better." — Dalai Lama [cid:image002.png@01DD5653.EA7D2FD0] [Diagram Description automatically generated] [cid:image004.png@01DD5653.EA7D2FD0] [A book cover of a financial valuation AI-generated content may be incorrect.] [cid:image006.png@01DD5653.EA7D2FD0] One of Forbes Top CPAs in Valuation Services in America 2025 and Top CPAs in Colorado 2026 From: Michelle Gallagher <mgallagher(a)gfkcpa.com> Sent: Monday, October 5, 2026 6:05 PM To: Ron Seigneur <ron.seigneur(a)cpavalue.com>; Dr. Michael Crain <craincpa(a)gmail.com>; ERC listserve <listserv(a)ercllc.net> Subject: RE: Becker Launches Foundations of AI for Accountants Certificate Ron - Please let us know when it comes out! Michelle F. Gallagher, CPA/ABV/CFF Principal Direct Dial: (517) 664-9395 Main Phone: (517) 507-0750 Mobile: (517) 930-2948 Toll-Free Fax: (888) 545-8501 Email: mgallagher(a)gfkcpa.com<mailto:mgallagher@gfkcpa.com> 2408 Lake Lansing Road, Lansing, MI 48912 www.gfkcpa.com<http://www.gfkcpa.com> From: Ron Seigneur via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Monday, October 5, 2026 2:35 PM To: Dr. Michael Crain <craincpa(a)gmail.com<mailto:craincpa@gmail.com>>; ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate The AI tool kit to be released shortly by the AICPA FVS Section focuses on AI resources for smaller BVFLS firms who do not have full time in house technology support. I have been part of the FVS task force working on this for the past several months along with fellow FCGers Karen Kaseno and Katie Gilden. We think it is a pretty solid package of tools for selection, implementation, guardrails, policies and beyond. Ron V-card<http://cpavalue.com/cfwebstore/email/Ronald%20L.%20Seigneur.vcf>| Web site<http://www.cpavalue.com/> | Bio<http://www.cpavalue.com/cfwebstore/index.cfm?fuseaction=feature.display&fea…> T 303.980.1111 D 720-665-9000 T 877.775.2676 F 303.308.6969 www.cpavalue.com<http://www.cpavalue.com/> [cid:image001.jpg@01DD5653.EA7D2FD0] Ron Seigneur MBA CPA/ABV ASA CVA Partner Ron.Seigneur(a)cpavalue.com<mailto:ron.seigneur@cpavalue.com> Seigneur Gustafson LLP 940 Wadsworth Blvd, Ste 200 Lakewood, Colorado 80214 Beyond the Number$ Click here<https://cpavalue.sharefile.com/r-rae8c2e26109748438e5529327a88b0a6> to send a secure file Thought for the quarter: “I used to have a handle on life, but it broke” – Anonymous Last quarters thought: "Choose to be optimistic, it feels better." — Dalai Lama [cid:image002.png@01DD5653.EA7D2FD0] [Diagram Description automatically generated] [cid:image004.png@01DD5653.EA7D2FD0] [A book cover of a financial valuation AI-generated content may be incorrect.] [cid:image006.png@01DD5653.EA7D2FD0] One of Forbes Top CPAs in Valuation Services in America 2025 and Top CPAs in Colorado 2026 From: Dr. Michael Crain via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:01 PM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate This Becker AI education might be helpful for smaller firms trying to push people to use AI. Baby step before going from zero to ‘let’s use AI in litigation’. The likely biggest hurdle for firms is demonstrating to non-users what AI can do. It sounds simple to fix but it is not. ‘How is it going to help ME?’ Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: "Dr. Michael Crain" <craincpa(a)gmail.com<mailto:craincpa@gmail.com>> Date: Thursday, October 1, 2026 at 10:11 AM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation… Dr. Michael A. Crain, CPA, CFA, ABV, CFE

Oct. 7, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Dr. Michael Crain

For those interested in reading more about implementing AI into FVS practice, you might consider how small-and medium-sized law firms are struggling with AI use in their law practices. Reddit has a group named ‘legaltech’ that has some practical discussions mostly written by lawyers (probably not boomers 😉) about AI. Lawyers in small- and medium-sized law firms struggle with confidentiality, cost, firm risk folks, and so on – the same issues small-and medium-size accounting firms face. Lawyers in this group are doing things like doc reviews and summarizing depos that FVS accountants similarly want to do. A lot of other Reddit groups have nonsense crapola posts but this legal group’s discussions are much better. Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: Michelle Gallagher <mgallagher(a)gfkcpa.com> Date: Monday, October 5, 2026 at 8:05 PM To: "ron.seigneur(a)cpavalue.com" <ron.seigneur(a)cpavalue.com>, "Dr. Michael Crain" <craincpa(a)gmail.com>, ERC listserve <listserv(a)ercllc.net> Subject: RE: Becker Launches Foundations of AI for Accountants Certificate Ron - Please let us know when it comes out! Michelle F. Gallagher, CPA/ABV/CFF Principal Direct Dial: (517) 664-9395 Main Phone: (517) 507-0750 Mobile: (517) 930-2948 Toll-Free Fax: (888) 545-8501 Email: mgallagher(a)gfkcpa.com<mailto:mgallagher@gfkcpa.com> 2408 Lake Lansing Road, Lansing, MI 48912 www.gfkcpa.com From: Ron Seigneur via Listserv <listserv(a)ercllc.net> Sent: Monday, October 5, 2026 2:35 PM To: Dr. Michael Crain <craincpa(a)gmail.com>; ERC listserve <listserv(a)ercllc.net> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate The AI tool kit to be released shortly by the AICPA FVS Section focuses on AI resources for smaller BVFLS firms who do not have full time in house technology support. I have been part of the FVS task force working on this for the past several months along with fellow FCGers Karen Kaseno and Katie Gilden. We think it is a pretty solid package of tools for selection, implementation, guardrails, policies and beyond. Ron V-card<http://cpavalue.com/cfwebstore/email/Ronald%20L.%20Seigneur.vcf>| Web site<http://www.cpavalue.com/> | Bio<http://www.cpavalue.com/cfwebstore/index.cfm?fuseaction=feature.display&fea…> T 303.980.1111 D 720-665-9000 T 877.775.2676 F 303.308.6969 www.cpavalue.com<http://www.cpavalue.com/> [cid:image001.jpg@01DD564A.5D0F37F0] Ron Seigneur MBA CPA/ABV ASA CVA Partner Ron.Seigneur(a)cpavalue.com<mailto:ron.seigneur@cpavalue.com> Seigneur Gustafson LLP 940 Wadsworth Blvd, Ste 200 Lakewood, Colorado 80214 Beyond the Number$ Click here<https://cpavalue.sharefile.com/r-rae8c2e26109748438e5529327a88b0a6> to send a secure file Thought for the quarter: “I used to have a handle on life, but it broke” – Anonymous Last quarters thought: "Choose to be optimistic, it feels better." — Dalai Lama [cid:image002.png@01DD564A.5D0F37F0] [Diagram Description automatically generated] [cid:image004.png@01DD564A.5D0F37F0] [A book cover of a financial valuation AI-generated content may be incorrect.] [cid:image006.png@01DD564A.5D0F37F0] One of Forbes Top CPAs in Valuation Services in America 2025 and Top CPAs in Colorado 2026 From: Dr. Michael Crain via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:01 PM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate This Becker AI education might be helpful for smaller firms trying to push people to use AI. Baby step before going from zero to ‘let’s use AI in litigation’. The likely biggest hurdle for firms is demonstrating to non-users what AI can do. It sounds simple to fix but it is not. ‘How is it going to help ME?’ Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: "Dr. Michael Crain" <craincpa(a)gmail.com<mailto:craincpa@gmail.com>> Date: Thursday, October 1, 2026 at 10:11 AM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation… Dr. Michael A. Crain, CPA, CFA, ABV, CFE

Oct. 7, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Michelle Gallagher

Ron - Please let us know when it comes out! Michelle F. Gallagher, CPA/ABV/CFF Principal Direct Dial: (517) 664-9395 Main Phone: (517) 507-0750 Mobile: (517) 930-2948 Toll-Free Fax: (888) 545-8501 Email: mgallagher(a)gfkcpa.com<mailto:mgallagher@gfkcpa.com> 2408 Lake Lansing Road, Lansing, MI 48912 www.gfkcpa.com From: Ron Seigneur via Listserv <listserv(a)ercllc.net> Sent: Monday, October 5, 2026 2:35 PM To: Dr. Michael Crain <craincpa(a)gmail.com>; ERC listserve <listserv(a)ercllc.net> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate The AI tool kit to be released shortly by the AICPA FVS Section focuses on AI resources for smaller BVFLS firms who do not have full time in house technology support. I have been part of the FVS task force working on this for the past several months along with fellow FCGers Karen Kaseno and Katie Gilden. We think it is a pretty solid package of tools for selection, implementation, guardrails, policies and beyond. Ron V-card<http://cpavalue.com/cfwebstore/email/Ronald%20L.%20Seigneur.vcf>| Web site<http://www.cpavalue.com/> | Bio<http://www.cpavalue.com/cfwebstore/index.cfm?fuseaction=feature.display&fea…> T 303.980.1111 D 720-665-9000 T 877.775.2676 F 303.308.6969 www.cpavalue.com<http://www.cpavalue.com/> [cid:image001.jpg@01DD5504.D1BAE6E0] Ron Seigneur MBA CPA/ABV ASA CVA Partner Ron.Seigneur(a)cpavalue.com<mailto:ron.seigneur@cpavalue.com> Seigneur Gustafson LLP 940 Wadsworth Blvd, Ste 200 Lakewood, Colorado 80214 Beyond the Number$ Click here<https://cpavalue.sharefile.com/r-rae8c2e26109748438e5529327a88b0a6> to send a secure file Thought for the quarter: “I used to have a handle on life, but it broke” – Anonymous Last quarters thought: "Choose to be optimistic, it feels better." — Dalai Lama [cid:image002.png@01DD5504.D1BAE6E0] [Diagram Description automatically generated] [cid:image004.png@01DD5504.D1BAE6E0] [A book cover of a financial valuation AI-generated content may be incorrect.] [cid:image006.png@01DD5504.D1BAE6E0] One of Forbes Top CPAs in Valuation Services in America 2025 and Top CPAs in Colorado 2026 From: Dr. Michael Crain via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:01 PM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate This Becker AI education might be helpful for smaller firms trying to push people to use AI. Baby step before going from zero to ‘let’s use AI in litigation’. The likely biggest hurdle for firms is demonstrating to non-users what AI can do. It sounds simple to fix but it is not. ‘How is it going to help ME?’ Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: "Dr. Michael Crain" <craincpa(a)gmail.com<mailto:craincpa@gmail.com>> Date: Thursday, October 1, 2026 at 10:11 AM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation… Dr. Michael A. Crain, CPA, CFA, ABV, CFE

Oct. 6, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Ron Seigneur

The AI tool kit to be released shortly by the AICPA FVS Section focuses on AI resources for smaller BVFLS firms who do not have full time in house technology support. I have been part of the FVS task force working on this for the past several months along with fellow FCGers Karen Kaseno and Katie Gilden. We think it is a pretty solid package of tools for selection, implementation, guardrails, policies and beyond. Ron V-card<http://cpavalue.com/cfwebstore/email/Ronald%20L.%20Seigneur.vcf>| Web site<http://www.cpavalue.com/> | Bio<http://www.cpavalue.com/cfwebstore/index.cfm?fuseaction=feature.display&fea…> T 303.980.1111 D 720-665-9000 T 877.775.2676 F 303.308.6969 www.cpavalue.com<http://www.cpavalue.com/> [cid:image001.jpg@01DD54C5.E1A72120] Ron Seigneur MBA CPA/ABV ASA CVA Partner Ron.Seigneur(a)cpavalue.com<mailto:ron.seigneur@cpavalue.com> Seigneur Gustafson LLP 940 Wadsworth Blvd, Ste 200 Lakewood, Colorado 80214 Beyond the Number$ Click here<https://cpavalue.sharefile.com/r-rae8c2e26109748438e5529327a88b0a6> to send a secure file Thought for the quarter: “I used to have a handle on life, but it broke” – Anonymous Last quarters thought: "Choose to be optimistic, it feels better." — Dalai Lama [cid:image002.png@01DD54C5.E1A72120] [Diagram Description automatically generated] [cid:image004.png@01DD54C5.E1A72120] [A book cover of a financial valuation AI-generated content may be incorrect.] [cid:image006.png@01DD54C5.E1A72120] One of Forbes Top CPAs in Valuation Services in America 2025 and Top CPAs in Colorado 2026 From: Dr. Michael Crain via Listserv <listserv(a)ercllc.net> Sent: Thursday, October 1, 2026 5:01 PM To: ERC listserve <listserv(a)ercllc.net> Subject: [Listserv] Re: Becker Launches Foundations of AI for Accountants Certificate This Becker AI education might be helpful for smaller firms trying to push people to use AI. Baby step before going from zero to ‘let’s use AI in litigation’. The likely biggest hurdle for firms is demonstrating to non-users what AI can do. It sounds simple to fix but it is not. ‘How is it going to help ME?’ Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: "Dr. Michael Crain" <craincpa(a)gmail.com<mailto:craincpa@gmail.com>> Date: Thursday, October 1, 2026 at 10:11 AM To: ERC listserve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation… Dr. Michael A. Crain, CPA, CFA, ABV, CFE

Oct. 5, 2026

Re: Plausibility of WACC - VC COE Yet Big Debt Component

by John Schumacher

Chris, thank you for the response. Neil, Chris, other ERCers, Now that I think further on this valuation, I am thinking my equity value is going to be all option value, otherwise it will be zero. Thus, I am thinking I will apply Black Scholes, to estimate the option value of the equity, with the value of the underlying asset the result from my DCF on an enterprise value level (possibly other methods applied and reconciled), and the strike price the face value of the debt (assuming no warrants). Any reactions on this approach, let me know. In terms of the volatility input to Black Scholes, I think technically it should be asset volatility, not equity volatility, due to my construct of using enterprise value for the value of the underlying asset. Any thoughts on that appreciated as well. Thank you again. John John Schumacher, CFA Email: jcs(a)tfpov.com<mailto:jcs@tfpov.com> | Direct: 312.933.2148 True Financial POV, LLC From: Chris Rosenthal <crosenthal(a)vallitadvisors.com> Sent: Thursday, October 1, 2026 4:13 PM To: Beaton, Neil <nbeaton(a)alvarezandmarsal.com>; John Schumacher <JCS(a)tfpov.com>; ERC Serve <listserv(a)ercllc.net> Subject: RE: Plausibility of WACC - VC COE Yet Big Debt Component I agree that the typical vc investment will have convertible debt, if any debt exists at all. The warrants will need to be valued and included in the calculation of the effective interest rate of the debt. To use a “market rate” of debt is not proper. That dilutes the WACC. If no convertible debt involved, then stick with the equity rate. [logo-email] R. Christopher Rosenthal, CPA/ABV/CFF, ASA, AEP Managing Member One Annapolis Street, Suite 201 Annapolis, Maryland 21401 Baltimore/Annapolis: 443-482-9500 x104 150 I Street, S.E., Office #104 Washington, DC 20003 DC: 202-652-4500 x104 625 E. Twiggs St., Suite #117 Tampa,<https://www.google.com/maps?q=150+I+Street+SE++Office+#104%20Washington%20D…> Florida 33602 FL: 813-402-8840 x104 Cell: 410-453-2557 Fax: 443-482-9069 crosenthal(a)vallitadvisors.com<mailto:crosenthal@vallitadvisors.com> www.vallitadvisors.com<http://www.vallitadvisors.com/> [Image result for small linkedin button for email signature]<https://www.linkedin.com/in/r-christopher-rosenthal-b853821/>[cid:image003.png@01DD5260.4C2E1750]<https://www.vallitadvisors.com/site/wp-content/uploads/2019/03/R_-Christoph…> From: Beaton, Neil via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 11:51 AM To: John Schumacher <JCS(a)tfpov.com<mailto:JCS@tfpov.com>>; ERC Serve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Re: Plausibility of WACC - VC COE Yet Big Debt Component Just my two cents: male cow manure. Most early-stage companies do not qualify for external debt funding and when they do, it is usually supplemented by a large swath of warrants (and those companies are usually later-stage start-ups). The forecast should be based on equity cash flows and then discounted at 55%, but even then, the practice aid cautions against relying solely on a DCF for a company that has never turned a profit. Is the debt convertible? That could alter the assessment as well. Happy to share more as needed. Neil J. Beaton Managing Director Alvarez & Marsal Valuation Services Cell: 206-963-5401 Direct: 206-664-8934 – Seattle Direct: 415-490-2259 – Bay Area Email: nbeaton(a)alvarezandmarsal.com<mailto:nbeaton@alvarezandmarsal.com> From: John Schumacher via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:44 PM To: ERC Serve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Plausibility of WACC - VC COE Yet Big Debt Component ⚠ [EXTERNAL EMAIL]: Use Caution ERCers. Have any of you ever prepared a traditional WACC analysis, applied in a 5-year DCF, where the required return on equity component was based on early stage VC rate of return as per the AICPA cheap stock practice aid (~55%), and then still included a meaningful debt component in the WACC? Or alternatively, could this make sense to you in certain fact patters? The certain fact pattern in the instant case is that the subject company does indeed have a significant amount of “interest-bearing debt” but the lender is also the majority shareholder, and thus the debt is not arm’s length. And the value of the debt is almost certainly below its face value. The subject interest is a controlling interest (arguably so), in a privately held company that has never turned a profit and generated significant losses since its inception over 5 years ago. The forecast at first blush is quite aggressive, so the VC rate of return for the equity makes sense to me, but the debt component of the WACC is completely neutering the equity rate of return as the opposing expert is assuming a capital structure in the WACC that is overwhelmingly debt. The opposing expert is saying the % of debt in the capital structure was determined “iteratively” but does not specify the goal post for what he/she was iterating towards but I suspect it is anchoring on the cap structure of an outlier GPC that is well below investment grade. Any insight on something I have never seen in my 20+ years in valuation would be appreciated. John John Schumacher, CFA Email: jcs(a)tfpov.com<mailto:jcs@tfpov.com> | Direct: 312.933.2148 True Financial POV, LLC

Oct. 2, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Dr. Michael Crain

This Becker AI education might be helpful for smaller firms trying to push people to use AI. Baby step before going from zero to ‘let’s use AI in litigation’. The likely biggest hurdle for firms is demonstrating to non-users what AI can do. It sounds simple to fix but it is not. ‘How is it going to help ME?’ Dr. Michael A. Crain, CPA, CFA, ABV, CFE From: "Dr. Michael Crain" <craincpa(a)gmail.com> Date: Thursday, October 1, 2026 at 10:11 AM To: ERC listserve <listserv(a)ercllc.net> Subject: Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation… Dr. Michael A. Crain, CPA, CFA, ABV, CFE

Oct. 1, 2026

Re: Plausibility of WACC - VC COE Yet Big Debt Component

by Chris Rosenthal

I agree that the typical vc investment will have convertible debt, if any debt exists at all. The warrants will need to be valued and included in the calculation of the effective interest rate of the debt. To use a “market rate” of debt is not proper. That dilutes the WACC. If no convertible debt involved, then stick with the equity rate. [logo-email] R. Christopher Rosenthal, CPA/ABV/CFF, ASA, AEP Managing Member One Annapolis Street, Suite 201 Annapolis, Maryland 21401 Baltimore/Annapolis: 443-482-9500 x104 150 I Street, S.E., Office #104 Washington, DC 20003 DC: 202-652-4500 x104 625 E. Twiggs St., Suite #117 Tampa,<https://www.google.com/maps?q=150+I+Street+SE++Office+#104%20Washington%20D…> Florida 33602 FL: 813-402-8840 x104 Cell: 410-453-2557 Fax: 443-482-9069 crosenthal(a)vallitadvisors.com<mailto:crosenthal@vallitadvisors.com> www.vallitadvisors.com<http://www.vallitadvisors.com/> [Image result for small linkedin button for email signature]<https://www.linkedin.com/in/r-christopher-rosenthal-b853821/>[cid:image003.png@01DD51C8.0A3D6E10]<https://www.vallitadvisors.com/site/wp-content/uploads/2019/03/R_-Christoph…> From: Beaton, Neil via Listserv <listserv(a)ercllc.net> Sent: Thursday, October 1, 2026 11:51 AM To: John Schumacher <JCS(a)tfpov.com>; ERC Serve <listserv(a)ercllc.net> Subject: [Listserv] Re: Plausibility of WACC - VC COE Yet Big Debt Component Just my two cents: male cow manure. Most early-stage companies do not qualify for external debt funding and when they do, it is usually supplemented by a large swath of warrants (and those companies a [cid:image004.png@01DD51C8.0A3D6E10] External (listserv(a)ercllc.net<mailto:listserv@ercllc.net>) [cid:image005.png@01DD51C8.0A3D6E10] Report This Email<removed-link> Just my two cents: male cow manure. Most early-stage companies do not qualify for external debt funding and when they do, it is usually supplemented by a large swath of warrants (and those companies are usually later-stage start-ups). The forecast should be based on equity cash flows and then discounted at 55%, but even then, the practice aid cautions against relying solely on a DCF for a company that has never turned a profit. Is the debt convertible? That could alter the assessment as well. Happy to share more as needed. Neil J. Beaton Managing Director Alvarez & Marsal Valuation Services Cell: 206-963-5401 Direct: 206-664-8934 – Seattle Direct: 415-490-2259 – Bay Area Email: nbeaton(a)alvarezandmarsal.com<mailto:nbeaton@alvarezandmarsal.com> From: John Schumacher via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:44 PM To: ERC Serve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Plausibility of WACC - VC COE Yet Big Debt Component ⚠ [EXTERNAL EMAIL]: Use Caution ERCers. Have any of you ever prepared a traditional WACC analysis, applied in a 5-year DCF, where the required return on equity component was based on early stage VC rate of return as per the AICPA cheap stock practice aid (~55%), and then still included a meaningful debt component in the WACC? Or alternatively, could this make sense to you in certain fact patters? The certain fact pattern in the instant case is that the subject company does indeed have a significant amount of “interest-bearing debt” but the lender is also the majority shareholder, and thus the debt is not arm’s length. And the value of the debt is almost certainly below its face value. The subject interest is a controlling interest (arguably so), in a privately held company that has never turned a profit and generated significant losses since its inception over 5 years ago. The forecast at first blush is quite aggressive, so the VC rate of return for the equity makes sense to me, but the debt component of the WACC is completely neutering the equity rate of return as the opposing expert is assuming a capital structure in the WACC that is overwhelmingly debt. The opposing expert is saying the % of debt in the capital structure was determined “iteratively” but does not specify the goal post for what he/she was iterating towards but I suspect it is anchoring on the cap structure of an outlier GPC that is well below investment grade. Any insight on something I have never seen in my 20+ years in valuation would be appreciated. John John Schumacher, CFA Email: jcs(a)tfpov.com<mailto:jcs@tfpov.com> | Direct: 312.933.2148 True Financial POV, LLC

Oct. 1, 2026

Re: Plausibility of WACC - VC COE Yet Big Debt Component

by John Schumacher

Neil, thank you for quick response and the additional insights from the Cheap stock practice aid. I don’t think the debt is convertible, but I have not received the agreement just yet. John John Schumacher, CFA Email: jcs(a)tfpov.com<mailto:jcs@tfpov.com> | Direct: 312.933.2148 True Financial POV, LLC From: Beaton, Neil <nbeaton(a)alvarezandmarsal.com> Sent: Thursday, October 1, 2026 10:51 AM To: John Schumacher <JCS(a)tfpov.com>; ERC Serve <listserv(a)ercllc.net> Subject: RE: Plausibility of WACC - VC COE Yet Big Debt Component Just my two cents: male cow manure. Most early-stage companies do not qualify for external debt funding and when they do, it is usually supplemented by a large swath of warrants (and those companies are usually later-stage start-ups). The forecast should be based on equity cash flows and then discounted at 55%, but even then, the practice aid cautions against relying solely on a DCF for a company that has never turned a profit. Is the debt convertible? That could alter the assessment as well. Happy to share more as needed. Neil J. Beaton Managing Director Alvarez & Marsal Valuation Services Cell: 206-963-5401 Direct: 206-664-8934 – Seattle Direct: 415-490-2259 – Bay Area Email: nbeaton(a)alvarezandmarsal.com<mailto:nbeaton@alvarezandmarsal.com> From: John Schumacher via Listserv <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Sent: Thursday, October 1, 2026 5:44 PM To: ERC Serve <listserv(a)ercllc.net<mailto:listserv@ercllc.net>> Subject: [Listserv] Plausibility of WACC - VC COE Yet Big Debt Component ⚠ [EXTERNAL EMAIL]: Use Caution ERCers. Have any of you ever prepared a traditional WACC analysis, applied in a 5-year DCF, where the required return on equity component was based on early stage VC rate of return as per the AICPA cheap stock practice aid (~55%), and then still included a meaningful debt component in the WACC? Or alternatively, could this make sense to you in certain fact patters? The certain fact pattern in the instant case is that the subject company does indeed have a significant amount of “interest-bearing debt” but the lender is also the majority shareholder, and thus the debt is not arm’s length. And the value of the debt is almost certainly below its face value. The subject interest is a controlling interest (arguably so), in a privately held company that has never turned a profit and generated significant losses since its inception over 5 years ago. The forecast at first blush is quite aggressive, so the VC rate of return for the equity makes sense to me, but the debt component of the WACC is completely neutering the equity rate of return as the opposing expert is assuming a capital structure in the WACC that is overwhelmingly debt. The opposing expert is saying the % of debt in the capital structure was determined “iteratively” but does not specify the goal post for what he/she was iterating towards but I suspect it is anchoring on the cap structure of an outlier GPC that is well below investment grade. Any insight on something I have never seen in my 20+ years in valuation would be appreciated. John John Schumacher, CFA Email: jcs(a)tfpov.com<mailto:jcs@tfpov.com> | Direct: 312.933.2148 True Financial POV, LLC

Oct. 1, 2026

Re: Becker Launches Foundations of AI for Accountants Certificate

by Stacey Udell

[X] [https://itmedia.azureedge.net/media/saxtechnology-000127.png] Stacey Udell Partner 389 Interpace Parkway, STE 3, Parsippany, NJ 07054 D: 973-554-6926<tel:973-554-6926> | W: www.saxadvisorygroup.com [https://itmedia.azureedge.net/media/saxtechnology-000124.png] [https://itmedia.azureedge.net/media/saxtechnology-000126.png] [Facebook]<https://www.facebook.com/SaxLLP/> [LinkedIn]<https://www.linkedin.com/company/sax-llp/> [YouTube]<https://www.youtube.com/@saxadvisorygroup> Register for the 2026 Sax Symposium Here<https://saxadvisorygroup.com/sax-business-symposium/> ________________________________ From: Dr. Michael Crain via Listserv <listserv(a)ercllc.net> Sent: Thursday, October 1, 2026 10:11 AM To: ERC listserve <listserv(a)ercllc.net> Subject: [Listserv] Becker Launches Foundations of AI for Accountants Certificate https://finance.yahoo.com/technology/ai/articles/becker-launches-foundation…<https://urldefense.proofpoint.com/v2/url?u=https-3A__finance.yahoo.com_tech…> Dr. Michael A. Crain, CPA, CFA, ABV, CFE "Sax" is the brand name under which Sax LLP and Sax Advisory Group LLC and its subsidiary entities provide professional services. Sax LLP and Sax Advisory Group LLC (and its subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Sax LLP is a licensed independent CPA firm that provides attest services to its clients, and Sax Advisory Group LLC and its subsidiary entities provide tax and business consulting services to their clients. Sax Advisory Group LLC and its subsidiary entities are not licensed CPA firms

Oct. 1, 2026