Viewpoint on Value

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Showing 1–16 of 378 results

  • Couple lets judge value their top marital asset – Absent expert testimony, court values interest in professional practice

    September / October 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 457

    Abstract: The Court of Appeals of North Carolina recently upheld a trial court’s valuation of the wife’s interest in a dental practice for equitable distribution purposes. Neither spouse offered expert testimony. This article summarizes the case and explains why the appellate court found that the trial court’s market-based valuation approach, while “rudimentary,” was a reasonable basis for the value of the business interest. Logue v. Logue, 877 S.E.2d 887 (N.C. Ct. App. 2022).

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  • Tax Court writes new chapter in ongoing saga of “tax affecting”

    September / October 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 564

    Abstract: In Estate of Cecil v. Commissioner, the U.S. Tax Court opined on whether “tax affecting” is appropriate when valuing noncontrolling, nonmarketable interests in pass-through entities using the income approach. This article summarizes the debate over tax affecting and why the court accepted tax affecting in this case. Estate of Cecil v. Commissioner, T.C. Memo 2023-24. Gross v. Commissioner, T.C. Memo. 1999-254, aff’d. 272 F. 3d 333 (6th Cir. 2001), cert. denied, 537 U.S. 827 (2002). Estate of Jones v. Commissioner, T.C. Memo. 2019-101.

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  • Limited time opportunity – Take advantage of the expanded unified gift and estate tax exemption

    September / October 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 680

    Abstract: The Tax Cuts and Jobs Act doubled the unified federal gift and estate tax exemption — and inflation has boosted it even further. For individuals who make gifts in 2023 or die in 2023, the unified exemption is $12.92 million (up from $12.06 million for 2022). Unfortunately, this favorable tax law provision is scheduled to expire after 2025, unless Congress extends it. This article explains why it’s time for private business owners to consider transferring ownership to the next generation or their favorite charities.

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  • How valuators can help distressed companies

    September / October 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 841

    Abstract: The COVID-19 pandemic took an economic toll globally, and many companies are still feeling its effects. This article discusses ways business valuation professionals can provide guidance for struggling companies — including by assessing risks and working with management to estimate going concern value in light of turnaround plans and, if necessary, liquidation value.

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  • Consultants vs. expert witnesses: It pays to hire both

    July / August 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 433

    Abstract: Outside professionals can play a critical role in litigation, particularly in cases involving complex financial or accounting issues. But it’s important to understand that these experts can serve two distinct roles as 1) consultants and 2) expert witnesses. This article explains the advantages of keeping these roles separate, rather than using one expert for both.

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  • Ramcell, Inc. v. Alltel Corporation – Court’s DCF analysis nearly quadruples stock valuation

    July / August 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 573

    Abstract: In a recent appraisal action, the Delaware Chancery Court determined that the fair value of the petitioner’s stock was $11,464 per share using the discounted cash flow (DCF) method. This was nearly four times the consideration received in connection with a short-form merger under Delaware law. This article provides a summary of the court’s ruling. Ramcell, Inc. v. Alltel Corporation, C.A. No. 2019-0601-PAF (Del. Ch. October 31, 2022).

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  • How to communicate statistical evidence to jurors

    July / August 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 639

    Abstract: Statistical evidence can be pivotal in many types of commercial litigation related to liability and economic damages. But this type of evidence can cause jurors’ eyes to glaze over with boredom, lack of comprehension or skepticism — unless it’s presented just right. This article describes ways to engage jurors and overcome hurdles when presenting statistical evidence in court.

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  • Using earnouts and CVRs in M&A transactions

    July / August 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 847

    Abstract: Earnouts can help bridge the valuation gap between buyers and sellers in mergers and acquisitions. This article provides an overview of the complex accounting and tax issues that earnouts and contingent value rights (CVRs) may raise. A sidebar highlights recent IRS guidance on structured attorneys’ fee arrangements. Childs v. Commissioner, 103 T.C. 634 (1994), aff’d without opinion, 89 F.3d 856 (11th Cir. 1996).

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  • Market approach: Don’t compare apples to oranges

    May / June 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 427

    Abstract: Under the market approach, the value of a business is derived from comparisons between the subject company and transactions involving similar businesses. This article lists factors to consider when selecting “comparables” and explains how the availability of closely tied comparables can affect an expert’s analysis. Heck v. Commissioner, T.C. Memo. 2002-34.

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  • M&A due diligence – Buyers should exercise caution when relying on financial statements

    May / June 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 626

    Abstract: Comprehensive due diligence is an essential part of acquiring a business. But it can be a daunting task — especially for inexperienced buyers. This article explains how financial professionals can help evaluate historical and prospective financial statements, identify potential hidden liabilities and misrepresentations, and prepare independent forecasts and projections. This information is critical when determining the optimal offer price and deal terms.

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  • Valuing collateral in bankruptcy

    May / June 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 663

    Abstract: A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes. This article summarizes this complex case, which demonstrates the leeway given to bankruptcy when valuing collateral and the importance of providing reasonable, well-supported valuation analyses and methods. In re Sears Holdings Corporation, 51 F. 4th 53 (2nd Cir. 2022).

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  • Court rejects valuation based on unsustainable past earnings

    May / June 2023
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    Price: $225.00, Subscriber Price: $157.50

    Word count: 844

    Abstract: In a recent divorce case, an Arizona court of appeals vacated a trial court’s ruling regarding the value of a 25% business interest owned by the wife. This article summarizes the case. A sidebar highlights another Arizona appellate court decision in which a calculation of value was accepted without a full opinion of value. In re Riddle, No. 1 CA-CV 21-0249 FC (Ariz. App. April 5, 2022). Mikalacki v. Rubezic, No. 1 CA-CV 21-0483 FC (Ariz. App. October 18, 2022).

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  • Proposed FRE amendments may affect your expert witnesses

    March / April 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 407

    Abstract: Proposed amendments to the Federal Rules of Evidence (FRE), expected to take effect in late 2023, may affect the admissibility of expert testimony. This article discusses the two key changes the amendments, if approved by the U.S. Supreme Court, would make and the impact they would have on the use of financial experts in federal cases.

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  • How to estimate lost profits for a start-up business

    March / April 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 594

    Abstract: The usual methods of calculating lost profits may fall short when a start-up is involved. This article explains alternative methods of assessing damages that experts use for companies without an established track record.

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  • Redleaf v. Commissioner – Cash payments are property settlement, not deductible alimony

    March / April 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 613

    Abstract: Pursuant to a marital termination agreement from 2008, the husband in Redleaf v. Commissioner deducted $51 million in deferred cash payments to his ex-wife. The U.S. Court of Appeals for the Eighth Circuit Court affirmed that the payments weren’t deductible as alimony under the tax law that was in effect at the time the agreement was executed. This article summarizes the case and highlights the importance of considering tax issues when executing a divorce or settlement agreement. Redleaf v. Commissioner, 43 F.4th 825 (8th Cir. 2022).

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  • DLOM dilemma – Defendants’ bad-faith behavior precluded marketability discount

    March / April 2023
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 898

    Abstract: In Sipko v. Koger, Inc., the New Jersey Supreme Court found that a discount for lack of marketability (DLOM) was inappropriate, noting the “defendants’ bad-faith behavior throughout this 15-year litigation.” This article summarizes this family business drama. A sidebar discusses the issue of applying DLOMs to controlling interests in private businesses to reflect the time and effort needed to convert them to cash. Sipko v. Koger, Inc., 276 A.3d 160 (N.J. Sup. Ct. 2022).

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