Viewpoint on Value
Showing 177–192 of 382 results
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Is it time to switch to Subchapter S status?
July / August 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 451
Abstract: No one can work forever, a fact that many Baby Boomers are starting to accept. As they face retirement, owners of C corporations who are contemplating a sale may be able to save substantial corporate-level taxes by electing to operate as a “pass-through” S corporation. This article explains how the recently shortened recognition period for built-in gain may provide a tax-saving opportunity for some owners, but why S status won’t work for every business.
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Valuators can take the “stress” out of financial distress
July / August 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 619
Abstract: Business bankruptcies are rising, and economic uncertainty persists in many parts of the country. This article explains how valuators can help determine whether liquidation or reorganization makes more sense, as well as providing guidance on everything from selling assets to shareholder disputes.
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Focus on fairness – Discounts may apply when valuing shares in oppression cases
July / August 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 699
Abstract: The appropriate standard of value when buying out shares in most oppressed shareholder cases is fair value. The application of valuation discounts under this standard of value varies from state to state, but it often depends on the facts and circumstances of the individual case. This article discusses a recent case in which the Superior Court of New Jersey granted a sizable discount for lack of marketability to provide equity to the disputing shareholders. Wisniewski v. Walsh, No. A-2650-13T3, Superior Court of New Jersey, Appellate Division, December 24, 2015 Mandelbaum v. Commissioner, T.C. Memo 1995-255, June 12, 1995
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Spotlight on marketability
July / August 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 876
Abstract: Valuators attempt to quantify the time, costs and uncertainty of selling a business interest through the discount for lack of marketability (DLOM). This article answers some frequently asked questions about the DLOM. It also provides a table that summarizes recent empirical data that may be used to quantify this discount. Mandelbaum v. Commissioner, T.C. Memo 1995-255, June 12, 1995
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Using a third expert to bridge the gap
May / June 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: When each side to a legal dispute hires its own business valuator, the two experts are unlikely to come up with exactly the same conclusion. It sometimes makes sense to hire another valuator to identify and reconcile key differences. This article provides guidance about hiring a third valuator, including how to keep costs down and define parameters up front.
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Personal goodwill: It’s not just for professional firms
May / June 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 561
Abstract: Family courts across the country struggle with the issue of goodwill. In a recent divorce case, South Carolina adopted the majority view that business goodwill is a marital asset that’s subject to division but personal goodwill isn’t. This article explains the state Supreme Court decision to include business goodwill in marital estates and provides guidance on how to bifurcate goodwill into these two categories in future cases. Moore v. Moore, 2015 S.C., Opinion No. 27579, October 7, 2015
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Spotlight on discount rates
May / June 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 673
Abstract: As the business valuation discipline matures, laypeople are becoming more comfortable with the income approach, including the capitalization of earnings and discounted cash flow methods. But translating a business’s perceived risk into a reasonable discount rate is one of the most subjective — and contentious — aspects of this approach. This article highlights various techniques for discounting future benefits into today’s dollars. It also discusses how to determine a company’s appropriate capital structure — or relative percentages of debt and equity.
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Revenue Ruling 59-60 – Tried-and-true guidance for valuing private business interests
May / June 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 825
Abstract: Revenue Ruling 59-60 of the Internal Revenue Code has been around for nearly 60 years. The IRS originally created this landmark publication for gift and estate tax purposes. Today, it’s often referenced in valuations prepared for other reasons, including divorce cases and shareholder disputes. This article highlights its definition of fair market value and lists various factors to consider when valuing a closely held business interest. A sidebar discusses what this guidance says about the use of weights and averages in business valuation.
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Valuation date: Timing is everything
March / April 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 439
Abstract: In an uncertain market, value can fluctuate significantly over time. So, it’s important to choose the valuation date carefully. Often, the date is prescribed by law or a judge. But sometimes attorneys are allowed to decide between different dates. This article takes a closer look at this fundamental decision for estates, divorces and minority shareholder litigation — and explains how this cutoff date can affect a valuator’s conclusion.
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Rx for valuing health care providers – Despite strong demand, sector is plagued by uncertainty
March / April 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 578
Abstract: Investors are generally more interested in future cash flows than historical performance. But projecting future cash flows for a health care provider can be like hitting a moving target in today’s volatile, regulated environment. This article discusses the unique opportunities, risks and rising costs these entities face — as well as the need for valuators to take a balanced approach when appraising them.
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A closer look at valuation credentials
March / April 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 696
Abstract: The business valuation (BV) discipline has grown up over the last few decades, but many gray areas persist. This article provides a road map to help attorneys and business owners navigate common BV credentials and determine how dedicated a practitioner is to the field of BV science.
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Why companies need to put a price tag on intangible assets
March / April 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 820
Abstract: In today’s marketplace, patents, copyrights, brands, customer lists and other intangible assets add significant value to many companies. However, because intangibles are often developed internally, they’re rarely included on a company’s balance sheet. This article highlights common reasons for businesses to identify and assign value to intangibles. A sidebar discusses valuation techniques used to appraise these hard-to-value assets.
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Tax law update: Hiring an appraiser for your estate
January / February 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 471
Abstract: The fine print of recent law extending the Highway Trust Fund requires large estates to report the fair market value of property at the owner’s death. Many estates will need to hire outside appraisers to comply with the requirements of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. This article answers FAQs about statements of value, including who’s affected, why the IRS wants appraisals and when the changes go into effect.
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Save time and money with rebuttal reports
January / February 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 535
Abstract: A defense attorney will often wait until the plaintiff’s attorney submits a valuation report. Then, the defense hires its own expert to prepare a “rebuttal report,” rather than pay for a separate full-blown valuation report. This strategy can be a cost-effective way to poke holes in the opposing expert’s analyses, but rebuttals are only effective when they’re detailed and accurate. This article explains reasons clients opt for rebuttal reports, the preferred reporting format and the level of detail courts have come to expect from rebuttal experts.
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Owen v. Cannon – Delaware Court narrows valuation gap
January / February 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 729
Abstract: Appraisal issues took center stage in a recent dissenting shareholder case. This article discusses several issues that resulted in a valuation discrepancy of roughly $32 million on the cash buyout of a minority owner. Two primary issues include 1) the use of management’s cash flow projections in a discounted cash flow analysis and 2) the appropriate rate at which to “tax affect” the subject company’s earnings.
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Retire at your own risk – How to maximize value when exiting a private business
January / February 2016
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 835
Abstract: The oldest Baby Boomers will turn 70 this year. Although a lot of younger Boomers continue to be actively involved in the workforce, many older ones who started their own businesses are finally starting to retire. Removing a key person from daily business operations generally isn’t something that can be done overnight, however. It takes time to facilitate a seamless transition to new management that also maximizes cash flow to the retiree. This article identifies various exit strategies that owners might consider and the importance of having realistic expectations about market value. A sidebar reminds owners of all ages to draft a valid buy-sell agreement, because not all exits occur at retirement.