Valuation & Litigation Briefing / Litigation & Valuation Report
Showing 209–224 of 385 results
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How financial restatements affect investor confidence
March / April 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 414
Abstract: In recent years, many companies have restated their financial statements due to material accounting errors or fraud. This brief article looks at a recent study that examined how these restatements affect investor confidence in a company’s earnings reports, and for how long. The study provides some ammunition for the argument that a restatement’s impact on stock prices is longer-lived than previously thought, and offers guidance for assessing economic damages caused by financial restatements and a party’s efforts to mitigate those damages.
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M&A fraud – Save your deal with comprehensive due diligence
March / April 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 618
Abstract: Despite how great a merger and acquisition (M&A) may look on paper, some M&A transactions can be threatened by occupational fraud, which occurs when an employee deliberately misuses or misapplies an employer’s resources or assets. This article explains what business buyers and their advisors should know to help detect and prevent M&A fraud. The article notes that, while valuation experts aren’t auditors and can’t be held responsible for finding fraud, they are well suited to conducting due diligence and can help acquiring companies, outside experts and attorneys evaluate M&A transactions.
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Ferolito v. AriZona Beverages USA LLC – Are marketability discounts warranted in fair value litigation?
March / April 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 692
Abstract: This article looks at a recent case involving a dispute between the two equal owners of AriZona Beverages USA LLC (AriZona), the largest privately owned beverage company in the United States, and addresses several valuation issues that arose in the dispute. In establishing the fair value of a 50% interest in AriZona, the New York Supreme Court (Nassau County) determined that the discounted cash flow method was the only reliable valuation method and set the discount for lack of marketability at 25%. This high-profile case also spotlights a few factors to consider when addressing marketability.
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Franchises present unique valuation challenges
March / April 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 851
Abstract: In many respects, valuing a franchise is just like valuing any other type of business, but it also requires a valuator to consider several factors unique to the franchise business model. This article summarizes these factors, focusing on valuation of a “single-unit” franchisee. It mentions the importance of analyzing the franchise agreement and looking at factors that may either add to or diminish a franchise’s value. A sidebar warns against accepting market multiples without close analysis.
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Revised AICPA ethics rules may affect your CPA experts
January / February 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 468
Abstract: Last year the AICPA overhauled the “Code of Professional Conduct,” reorganizing the rules and introducing new conceptual frameworks for CPAs in public practice and in business. This brief article provides an overview of some of the revisions to the code, pointing out that the new conceptual frameworks adopt a “threats and safeguards” approach.
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Trouble ahead – Finding the value of an underperforming company
January / February 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 614
Abstract: Underperforming companies present special valuation challenges. Financial distress adds an element of risk, which lowers value. This article notes some of the warning signs of financial distress, including weak demand, scaled-back corporate budgets, tighter credit, recurring net losses and deteriorating liquidity. It also explains the techniques valuators are likely to use and how they determine whether liquidation or strategic value would be appropriate.
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Biotronik A.G. v. Conor Medsystems Ireland, Ltd. – Toeing the fine line between general and consequential damages
January / February 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 528
Abstract: This article discusses a recent case in which the distinction between general and consequential damages was at stake. The issue was whether the plaintiff’s alleged lost profits were general damages, which could be recovered, or consequential damages, which could not. The decision shows that contracting parties should expressly spell this out in the contract to minimize disputes over how to properly categorize losses in any future breach-of-contract litigation. Biotronik A.G. v. Conor Medsystems Ireland, Ltd., 2014 NY Slip Op 02101 (N.Y. 3/27/14)
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Calculations vs. conclusions: Know the differences
January / February 2015
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 924
Abstract: As this article argues, attorneys need to understand the difference between a “conclusion of value” and a “calculation of value.” Although the two terms sound similar, relying on the latter in the courtroom can lead to embarrassment. While a value calculation can be a cost-effective tool for planning or settlement discussions, only a value conclusion will do to prove a case in court. In Re Marriage of Hagar, No. 0-672/09-1902 (Iowa App. 11/24/2010) Surgem, LLC v. Seitz, No. A-4198-11T1 (N.J. Super. App. Div. 10/16/2013)
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How visual analytics can help detect fraud
November / December 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 429
Abstract: Accumulating large amounts of information is easier and faster than ever, but analyzing that information remains a challenge. Visual analytics — also known as data visualization — can be a powerful tool for making sense of large amounts of data and presenting that information to a judge or jury. This brief article outlines how visual analytics works and how it can help users identify hidden trends, patterns, relationships and anomalies.
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Daubert calls for liberal admission of expert testimony
November / December 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 528
Abstract: In recent years, federal district courts have become increasingly aggressive in excluding expert testimony — both scientific and financial — on Daubert grounds. But this article summarizes two recent decisions in which courts clarified that the standards for admission of expert testimony are liberal ones. City of Pomona v. SQM North America, Nos. 12-55147 and 12-55193 (9th Cir. 5/2/14) Johnson v. Mead Johnson & Company, Nos. 13-1685 and 13-22681 (8th Cir. 6/6/14)
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Key to the operation – Determining key-person discounts
November / December 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 698
Abstract: For some companies, one — or even two — persons may be truly irreplaceable. What happens to the business’s value in the case of a merger, acquisition or sale if that key person unexpectedly leaves the company? This article discusses several factors a valuator typically looks at to determine whether a valuation discount is warranted to reflect the potential risk to the business if the key person leaves.
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Dispelling the myths about control premiums
November / December 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 824
Abstract: Fewer concepts are more widely misunderstood in business valuation than the control premium. For one thing, whether a premium or discount is appropriate depends on the level of value. And even if a control premium is appropriate, quantifying it is a challenge — and is subject to a great deal of debate in the valuation community. This article explains how valuators decide what method is appropriate to determine whether a control premium makes sense.
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Carter v. Clements Walker – The dangers of speculation
September / October 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 441
Abstract: Speculative damages calculations usually are insufficient to support a damages award — even if presented by an expert. In a recent case, Carter v. Clements Walker, the plaintiff learned this lesson the hard way when the North Carolina Superior Court threw out his $33 million claim on a motion for summary judgment. This brief article goes over the main points of the case, noting the importance of working with a valuator to ensure damages conclusions are based on solid evidence rather than speculation. Carter v. Clements Walker, No. 08 CVS 4333 (N.C. Superior Ct. 1/10/14)
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What secrets might this 1040 tell? Experts look to tax returns in hidden-asset investigations
September / October 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 708
Abstract: Business owners involved in divorce or engaged in fraudulent activity have plenty of motivation to manipulate the business’s financial statements for their own ends. But a company’s tax returns aren’t so easy to misrepresent — so they’re one place financial experts look when investigating hidden assets. This article lists the kinds of financial information valuators and others may uncover when examining a company’s tax returns.
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Lack of marketability discounts — from the IRS’s perspective
September / October 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 557
Abstract: Interests in closely held companies typically are entitled to a discount for lack of marketability (DLOM), because an interest that can’t readily be sold on a national stock exchange is worth less than a comparable interest in a publicly traded company. But determining the amount of the discount can be tricky. A few years ago, the IRS released a report, Discount for Lack of Marketability: Job Aid for IRS Valuation Professionals, which provides a critique of common methods valuators use to calculate the discount and offers valuable insight into IRS views on the subject. This article offers the highlights of that IRS report.
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Calculating damages in IP litigation – An infringer’s profits may be recoverable
September / October 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 872
Abstract: To protect victims of intellectual property (IP) infringement, federal law provides several alternative measures of damages. While a plaintiff generally is entitled to recover lost profits attributable to the infringement (or, at minimum, a reasonable royalty), these lost profits can be difficult to measure or prove. In such cases, the plaintiff may be able to recover the infringer’s profits as a substitute. This article discusses the circumstances under which a plaintiff may use this remedy, and explains how valuation experts can assist — especially if involved early in the litigation process.