Valuation/Lit. sup./Fraud/M&A
Showing 17–32 of 1593 results
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Business valuation, real estate appraisal — or both?
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: Every business needs real estate, whether it’s commercial office space, a retail store, a manufacturing facility or a home office. If a valuation is needed, should you use a business valuation professional, a real estate appraiser or both? This article explores situations where this question may come into play and how to proceed in order to achieve the most meaningful valuation results.
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Connecticut court determines fair value of 50% ownership interest
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 621
Abstract: Fair value in shareholder disputes is typically defined by state law. It generally equals fair market value without discounts for lack of control or marketability. This article discusses a recent case in Connecticut that addressed this issue in the context of a dissolution proceeding. Buccieri v. New Hope Realty, Inc., 2022 Conn. Super. LEXIS 2230 (Oct. 20, 2022).
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How to factor fraud risks into a business valuation
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 612
Abstract: An important part of the valuation process is identifying potential risks and gauging whether management has taken appropriate action to mitigate those risks. This article explains how valuators evaluate internal controls and corporate culture, tailoring their analyses based on the subject company’s size, complexity, industry and goals.
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Clary Hood, Inc. v. Commissioner – Tax Court provides guidance on determining reasonable compensation
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 879
Abstract: The issue of reasonable compensation frequently comes up when valuing a business. In Clary Hood, Inc. v. Commissioner, the U.S. Tax Court provided valuable guidance on the determination of reasonable compensation as well as the sufficiency of expert testimony on the subject. This article explores the court’s decision, which not only addresses a federal tax issue, but also clarifies how to determine reasonable compensation in other contexts, such as shareholder disputes and divorce matters. T.C. Memo 2022-15, affirmed in part and vacated in part (with respect to penalties), Clary Hood, Inc. v. Commissioner, 69 F.4th 168 (4th Cir. 2023).
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Business valuation, real estate appraisal — or both?
January / February 2024
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: Every business needs real estate, whether it’s commercial office space, a retail store, a manufacturing facility or a home office. If a valuation is needed, should you use a business valuation professional, a real estate appraiser or both? This article explores situations where this question may come into play and how to proceed in order to achieve the most meaningful valuation results.
-
Connecticut court determines fair value of 50% ownership interest
January / February 2024
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 621
Abstract: Fair value in shareholder disputes is typically defined by state law. It generally equals fair market value without discounts for lack of control or marketability. This article discusses a recent case in Connecticut that addressed this issue in the context of a dissolution proceeding. Buccieri v. New Hope Realty, Inc., 2022 Conn. Super. LEXIS 2230 (Oct. 20, 2022).
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How to factor fraud risks into a business valuation
January / February 2024
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 612
Abstract: An important part of the valuation process is identifying potential risks and gauging whether management has taken appropriate action to mitigate those risks. This article explains how valuators evaluate internal controls and corporate culture, tailoring their analyses based on the subject company’s size, complexity, industry and goals.
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Clary Hood, Inc. v. Commissioner – Tax Court provides guidance on determining reasonable compensation
January / February 2024
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 879
Abstract: The issue of reasonable compensation frequently comes up when valuing a business. In Clary Hood, Inc. v. Commissioner, the U.S. Tax Court provided valuable guidance on the determination of reasonable compensation as well as the sufficiency of expert testimony on the subject. This article explores the court’s decision, which not only addresses a federal tax issue, but also clarifies how to determine reasonable compensation in other contexts, such as shareholder disputes and divorce matters. T.C. Memo 2022-15, affirmed in part and vacated in part (with respect to penalties), Clary Hood, Inc. v. Commissioner, 69 F.4th 168 (4th Cir. 2023).
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Beware of the corporate opportunity doctrine
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 428
Abstract: Under the corporate opportunity doctrine, an agent of a corporation can’t divert or exploit for the agent’s own benefit an opportunity that’s the principal’s opportunity. This article summarizes a recent case in which a New York trial court found the majority owners of a successful sports bar misappropriated a “corporate opportunity” when they used lease buyout proceeds to relocate the bar and start a new corporation to run it. O’Mahony v. Whiston, No. 652621/2014. (N.Y. Cty., Feb. 15, 2023).
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How to reduce frauds from C-suite executives
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 562
Abstract: The largest fraud losses typically come from people in positions with the highest authority — owners and executives. A recent study by the Association of Certified Fraud Examiners reports that the median loss from these fraud schemes was $337,000, compared to $50,000 for rank-and-file workers. This article discusses ways to reduce executive-level fraud risks by focusing on the three critical elements of the fraud triangle: motive, opportunity and rationalization.
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FAQs about valuing human capital
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 682
Abstract: The term “human capital” refers to a trained and assembled group of workers who know how to operate equipment, follow the company’s policies and procedures, innovate to build new products and services, and work together as a team to achieve the company’s strategic goals. Human capital is often an unreported — but valuable — asset that can be difficult to appraise. This article discusses the types of human capital assets, how to value them and when a valuation might be needed.
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Estate of MacElhenny v. Commissioner – Claims against decedent didn’t reduce the estate’s value
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 862
Abstract: The U.S. Tax Court recently ruled that an estate couldn’t deduct the value of two consent judgments entered against the decedent. This article explains why the U.S. Tax Court sided with the IRS, ruling that the judgments didn’t qualify as “bona fide” claims against the estate. A sidebar highlights the Tax Court’s rejection of the estate’s argument that entry by a state court makes judgments bona fide claims. Estate of MacElhenny v. Commissioner, Nos. 12981-19, 12982-19 (Tax Ct. March 15, 2023).
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Are PPP funds includable in business income for valuation purposes?
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 431
Abstract: The Paycheck Protection Program (PPP) was enacted during the pandemic to help struggling businesses cover operating costs incurred while they were temporarily forced to shut down. This article summarizes a recent divorce case in which the Vermont Supreme Court upheld a decision allowing PPP funds to be included in income for business valuation purposes. Griggs v. Griggs, No. 22-AP-186 (Vt. Sup. Ct. March 10, 2023).
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How financial experts can help in bankruptcy
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 548
Abstract: There’s been a wave of business bankruptcies in 2023. Companies facing financial distress may find relief by assembling a team of experienced advisors to mitigate losses and, if possible, take corrective measures. This article highlights the role a financial professional can play in reorganizations, sales and liquidations.
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11th Circuit: Plaintiff entitled to damages for future lost profits
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 654
Abstract: The U.S. Court of Appeals for the 11th Circuit in WL Alliance, LLC v. Precision Testing Group, Inc. upheld a jury award of $3.3 million, including $1.6 million in damages for lost future profits. The article summarizes why the appellate court upheld the district court’s decision to reject the defendants’ argument that lost future profits weren’t recoverable because they were too speculative. WL Alliance, LLC v. Precision Testing Group, Inc., No. 22-10780 (U.S. Court of Appeals, 11th Cir., Dec. 21, 2022).
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ES NPA Holding, LLC v. Commissioner – Tax Court finds arm’s-length sale was best evidence of value
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 905
Abstract: A U.S. Tax Court case recently addressed the issue of whether a taxpayer received a capital interest or a profits interest in a partnership for services provided to the partnership. Capital interests are immediately taxable, while profits interests generally are tax-deferred. This article summarizes this case, which concluded that the characterization of the taxpayer’s interest depended on the partnership’s fair market value. A sidebar provides ideas to bridge the gap between the seller’s asking price and the buyer’s offer price. ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55.