Valuation/Lit. sup./Fraud/M&A
Showing 1153–1168 of 1569 results
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Growth rate becomes critical to lost profits calculation
July / August 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 999
Abstract: In commercial cases involving lost profits, selecting an appropriate growth rate is a critical step in calculating damages. It’s also one of the most challenging. Depending on the amount at stake and the length of the damages period, adjusting the growth rate by just a few percentage points can have a significant effect on the outcome. This article looks at one lost profits case in which the court found that the plaintiff’s expert’s general approach was sound but that his method of selecting the growth rate wasn’t. A sidebar discusses one of the court’s criticisms in particular. Citation: Manpower Inc. v. Insurance Company of the State of Pennsylvania, No. 08C0085 (E.D.Wis. 09/20/2010)
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Court rejects shortcut in favor of detailed analysis
July / August 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 409
Abstract: A common rule of thumb for calculating reasonable royalties in patent infringement cases has been to presume the inventor and manufacturer split pretax profits 25/75. In Uniloc USA Inc. v. Microsoft Corporation, the U.S. Court of Appeals for the Federal Circuit called this methodology “fundamentally flawed.” This brief article summarizes this case, noting that the decision underscores the importance of hiring a credentialed financial expert and establishing a solid connection between an expert’s analytical tools and case facts. Citations: Uniloc USA Inc. v. Microsoft Corporation, Case Nos. 2010-1035 and 2010-1055, Fed. Cir., Jan. 4, 2011. Daubert v. Merrell Dow Pharmaceuticals, 509 U.S. 589, 1983.
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Settling shareholder disputes — Valuators build a bridge over troubled waters
July / August 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 659
Abstract: A company’s owners tend to get along when times are good, but economic downturns can bring out the worst in shareholder relations. This article uses a hypothetical case study to illustrate how valuators can serve as expert witnesses or consultants, helping settle shareholder disputes both in and out of court. Valuators are objective outsiders who can defuse emotions and help the remaining owners refocus their attention on building and preserving value.
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Projected cash flow — History doesn’t tell the whole story
July / August 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 821
Abstract: Projected cash flow is an important measure of future economic benefits. Although some companies may grow at a relatively constant rate, a business’s historic cash flows may not be an accurate measure of its expected future performance — especially in an uncertain business climate. This article discusses the methods valuators use to project cash flow and notes the ways cash flow projections may help owners manage cash flow more efficiently or survive the monthly (or off-season) cash crunch.
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Purchase price allocations: Acquiring minds want to know
July / August 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1011
Abstract: When planning to merge with or acquire another company, a business owner needs to identify what’s actually being sold and estimate what those assets are really worth. Often the most valuable assets — such as goodwill, brand names, customer lists and patents — don’t appear on the balance sheet. This article explains how a preacquisition purchase price allocation can help an owner determine whether a purchase price is reasonable and ensure a transaction makes sense from a financial perspective.
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Punitive damages – Are you asking the right questions?
July / August 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 687
Abstract: Although the U.S. Supreme Court has suggested that there may be constitutional limits on the size of punitive damages awards, an appropriate award generally depends on the defendant’s financial condition. Professional damages experts can help lawyers ask the right questions and present information in court that will bolster their case. This article shows how the plaintiff’s or defendant’s counsel can address issues such as who specifically is responsible for the alleged wrongdoing, how they profited from it, and their ability to pay.
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Spotting deception in fraud interviews
July / August 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 517
Abstract: Even employees innocent of occupational theft may be less than honest during fraud interviews. Fortunately, experienced fraud investigators are skilled at spotting deception in perpetrators and bystanders alike. This article describes how investigators discern the verbal and nonverbal cues that can indicate who may know of fraud — whether committed by themselves or someone else.
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ESI preservation guidelines can help your clients avoid sanctions
July / August 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 589
Abstract: The quantity and numerous sources and formats of electronically stored information (ESI) can make satisfying the duty of preservation difficult. The Delaware Court of Chancery has attempted to address the problem by releasing some guidelines on ESI preservation. This article discusses some of these guidelines, which can help U.S. companies incorporated in Delaware avoid sanctions.
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Uniloc v. Microsoft – Federal Circuit rejects “25% rule” for patent damages
July / August 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 936
Abstract: Financial experts may use certain theoretical tools — or rules of thumb — to calculate infringement damages. But in Uniloc USA Inc. v. Microsoft Corp., the U.S. Court of Appeals for the Federal Circuit made it clear that experts should base their calculations on a case’s facts, rather than rely on abstract theoretical tools, especially those used arbitrarily. This article explains why the court decided the commonly used “25% rule” and “entire market value” rule were improper in this case. A sidebar notes that the court reaffirmed the use of the Georgia-Pacific factors to frame the question of reasonable royalties in patent infringement cases.
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Ask the Advisor – Q. How should my company handle an unsolicited offer?
June / July 2011
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 390
Abstract: Business owners may be initially skeptical of an unsolicited acquisition offer, but in some cases, such offers can provide great opportunities. The trouble with unsolicited offers, however, is that anyone can make them. So, as this article discusses, potential sellers need to resolve three general issues about the prospective buyer and enlist the help of an M&A advisor.
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Deal do-over – Make the second time a charm
June / July 2011
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 584
Abstract: It’s wise for a business owner to be cautious — even suspicious — if a former prospective buyer renews its interest in making an acquisition. But shutting the door without a fair hearing could be a mistake. Such buyers often are ideal merger partners because they’ve likely learned from their mistakes and are committed to making it work this go-around. This article looks at some of the issues that should be revisited before sellers agree to a second courtship.
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Attitude adjustment – Heading off purchase price disputes
June / July 2011
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 688
Abstract: Because most M&A deals are negotiated before closing-date financials are available, buyers and sellers usually have to make postclosing purchase price adjustments. These can lead to disagreements between the parties. This article explains how an M&A advisor can draft purchase price adjustment provisions that reduce disputes by addressing different accounting methods and the interpretation of specific line items.
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Put managers to work on your merger
June / July 2011
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 780
Abstract: Good frontline managers can help their company accomplish the many tasks involved in closing a deal and making the merger transition. If managers are left out or undervalued, they’re likely to become disengaged or even impede the integration process, and the company wastes vital human resources. Therefore, merging companies must put managers at all levels to work communicating the merger to employees and handling integration tasks. This article’s sidebar explains how to identify those managers best suited to assume important merger-related duties.
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Poking holes in your damages case – Critiquing expert can help avoid disaste
May / June 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 572
Abstract: No matter how thoroughly a company prepares, it can be difficult for it to recognize weaknesses or errors in its expert’s report. Even if it has a firm grasp of the concepts on which the expert will testify, both the company and the expert may be too close to the case to evaluate it objectively. This article explains that, when large sums are at stake, an independent “critiquing” expert can ensure the expert’s report will withstand adversarial scrutiny. It looks at what’s involved and how to choose a critiquing expert.
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When it’s time to calculate damages – How to ensure a reasonable discount rate
May / June 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 611
Abstract: Consider this scenario: A company goes to court to recover the lost profits it likely would have earned in the future had an employee not divulged the secrets to a competitor. But what’s the best way to determine those lost profits? As this article explains, a skillful financial expert can discount future damages to present value, providing the ammunition businesses need to receive a just award. It discusses the impact that discounting can have on damages awards, what affects the discount rate, and two approaches to calculating lost profits damages.
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In the battle of experts, one weapon simply isn’t enough
May / June 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 686
Abstract: Business appraisers generally consider several valuation methods in reaching a value conclusion. In one case in Delaware, a court found the petitioner’s valuation expert to be “totally, completely unreliable,” in large part because she’d relied exclusively on one valuation technique. This article discusses the three most common valuation approaches and the importance of using multiple valuation methods whenever possible to support value conclusions. Citation: In re Hanover Direct, Inc. Shareholders Litigation, No. 1969-CC (Del.Ch. 09/24/2010)