Valuation/Lit. sup./Fraud/M&A
Showing 1201–1216 of 1569 results
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Understanding the “fair value” standard
Winter 2011
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 802
Abstract: Different valuation assignments call for different standards of value. Minority shareholder dissension and oppression cases can be especially tricky. This article discusses some considerations that affect an appraiser’s approach to these cases — and, ultimately, the estimated value of minority interests. A sidebar explains that “fair value” can mean different things in accounting vs. legal contexts, and looks at the Financial Accounting Standards Board’s universal definition of fair value that supersedes any previous versions.
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Hawaiian divorce case puts valuation evidence to the test
Winter 2011
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 633
Abstract: A valuation’s purpose affects an appraiser’s methodology and analyses. What’s allowed in tax court, such as buy-sell agreements or valuation discounts, may be excluded from evidence in, say, divorce court. A credible appraiser, however, can help persuade judges to accept valuation evidence that’s reasonable and fair. This article discusses a recent divorce case in Hawaii that provides an interesting example. Doe v. Roe, 2010 WL 2535138, June 23, 2010 (Hawai’i App., No. 28596)
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No hats involved – Discounts for lack of marketability call for a detailed process
Winter 2011
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 644
Abstract: When calculating any valuation adjustment, an appraiser obviously can’t just pick a number out of a hat. But the discount for lack of marketability (DLOM) is an often-contested valuation adjustment that requires a particularly detailed process. This article shows how appraisers use empirical evidence, such as restricted stock studies and pre-initial public offering studies, to quantify a DLOM percentage for noncontrolling private business interests. But appraisers are also digging deeper than just empirical study averages to obtain more meaningful, defendable comparisons.
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Down for the count – Detecting inventory fraud
Winter 2011
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: Like any type of employee scam, inventory fraud can lead to losses that can go undetected for long stretches of time. Many companies are particularly vulnerable to such fraud, though, because of risks that are inherent in the way they do business. This article describes three common fraud techniques, and explains what’s involved in a fraud investigation.
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The role of forensic skepticism in lost profits calculations
January / February 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 352
Abstract: When financial experts analyze claims for lost profits or other business damages, it’s important that they look behind the numbers for signs that they might have been manipulated or falsified. This article uses a fictitious example to show how this “forensic skepticism” is part of what makes forensic accounting and damages analysis an art as well as a science.
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Buy-sell agreements – 4 valuation-related pitfalls to avoid
January / February 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 622
Abstract: Businesses with multiple owners need to draft buy-sell agreements to protect the owners’ interests in case of a partner/shareholder’s death or retirement. But, all too often, owners make critical valuation-related mistakes when setting up such agreements. This article lists four valuation-related pitfalls to be aware of.
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Tax Court: Subsequent sale was best evidence of fair market value
January / February 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1091
Abstract: This article discusses a case in which the U.S. Tax Court discussed the impact of post–valuation-date sales on fair market value as well as the importance of choosing an experienced, qualified valuation expert. The court found that the sale of a partnership interest, which was agreed to six months after the valuation date and completed nearly four months later, was “probative” of value, but not “conclusive.” The case illustrates the significance of considering subsequent sales in valuing a business interest. Citations: Ringgold Telephone Company v. Commissioner (T.C. Memo 2010-103)
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What is the “value” of litigation?
January / February 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 760
Abstract: Placing a value on litigation — that is, determining the probable outcome and its potential financial impact on a party — can not only assist in weighing the relative costs and benefits of various litigation strategies, but it’s also relevant for business valuation and financial reporting purposes. And it’s particularly significant in light of the Financial Accounting Standards Board’s proposed changes in the way loss contingencies are accounted for and disclosed in a company’s financial statements. This article discusses these changes and how they raise significant concerns for parties and their counsel.
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Understanding liquidation value: Are you in the know?
January / February 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 356
Abstract: Today’s faltering economy has meant that some businesses’ liquidation values exceed their going-concern values. This brief article notes the difference between going-concern value and liquidation value and explains the ins and outs of estimating liquidation value. It also mentions some of the factors valuators consider when going-concern value is no longer the best option.
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Valuators cover the gamut from A to Z
January / February 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 625
Abstract: A credible valuation that can withstand professional scrutiny requires diligent research and analysis of both the business interest itself and relevant valuation data, documented in an explanatory report. This article notes that valuation services can be helpful in numerous situations, including transaction planning, financial restructuring, litigation support and succession planning, pointing out that a valuator’s real skill is transforming assembled information into a meaningful valuation analysis.
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Re-evaluating discount rates in a distressed economy
January / February 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 712
Abstract: Investors require a certain return for taking on the risk of investing in a business. Valuators measure risk using discount (and capitalization) rates and measure return using future income streams. Estimating discount rates is a complex task, even in the best of times. But the volatile economy has forced valuators to re-evaluate traditional methods of quantifying discount rates. This article discusses some of the issues facing valuators as they estimate discount rates in the current business climate.
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Risk assessment — The added value of benchmarking
January / February 2011
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1116
Abstract: All else being equal, the higher a business’s risk, the lower its value. Benchmarking a business against its competitors — or itself over time — is one way that valuators assess risk. This article looks at the components of a comprehensive benchmarking study and how various factors, including size, growth, liquidity and profitability, affect risk. The article points out that owners and managers can use a comprehensive benchmarking study as a strategic management tool and to help identify a business’s strengths, weaknesses and trends.
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When settlement proceeds are taxable
January / February 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 499
Abstract: The Sixth Circuit Court of Appeals has affirmed a Tax Court ruling that settlement proceeds received for false imprisonment aren’t excludable from taxable income under Internal Revenue Code Section 104(a)(2). This article discusses the opinion, which offers a valuable reminder of the two-pronged test for exclusion of income.
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FLP update – Court sides with IRS over bona fide business arrangements
January / February 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 724
Abstract: Family limited partnerships (FLPs) offer advantages for some taxpayers, but the IRS continues to challenge these arrangements on several theories. This article summarizes one recent case, Holman v. Commissioner. In Holman, the Eighth Circuit Court of Appeals held that, because the FLP at issue didn’t satisfy the “bona fide business arrangement” requirement, its transfer restrictions shouldn’t be considered when calculating the valuation discount for shares of the FLP.
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Are your clients prepared to handle a fraud disaster?
January / February 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 645
Abstract: Few businesses have considered — let alone documented — what they’d do if they found employees embezzling funds, stealing inventory or fudging financial statements. This article looks at the importance of having a fraud contingency plan, and what such a plan entails. It also describes how forensic accountants and computer experts can preserve evidence and conduct interviews in a way that helps establish their validity in court.
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Be reasonable – How business compensation can affect divorce cases
January / February 2011
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 846
Abstract: When a divorcing spouse owns or is a partner in a closely held business, its value — particularly the amount of compensation the business provides to its owners — can play a significant role in the divorce case’s financial outcome. This article discusses the factors a professional valuator considers to determine reasonable compensation. A sidebar talks about issues that affect the credibility of expert testimony on reasonable compensation.