Valuation/Lit. sup./Fraud/M&A
Showing 1233–1248 of 1569 results
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Ask the Advisor – Q: How do I ensure I actually get paid for selling my company?
October / November 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 410
Abstract: Most acquisitions involve future payment obligations, such as installments paid by the buyer to the seller. To mitigate the risk that the buyer will default on its obligations, the seller must ensure it has a form of security. This article explains what’s involved in security negotiations and the types of security that might be offered.
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Torn between two buyers – How to handle an enviable dilemma
October / November 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 579
Abstract: Receiving serious interest from two buyers may seem like a business seller’s dream scenario. Competing buyers are more likely to bid up a company’s selling price and enable it to ask for favorable deal terms. But if sellers don’t play their hands right, they could potentially alienate both interested parties. This article explains the importance of researching potential buyers and understanding their strategic objectives.
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$1 doesn’t always equal $1 – Cash flow value is subjective
October / November 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 668
Abstract: When valuing a company for sale, not only might a buyer’s valuator disagree with a seller’s valuator, but experts working for different prospective buyers can arrive at different conclusions. This article discusses judgment calls that are often part of the valuation process. It covers what buyers are looking for, the period of time the valuation might reflect, and how discount rates are calculated.
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Keeping key players on board with incentives
October / November 2010
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 732
Abstract: For many business buyers, their target’s executives and other key employees are a large part of the company’s appeal. An exodus of top talent after an M&A is announced can reduce the selling company’s value significantly. So sellers need to ensure that personnel remain on board during and after a merger. This article describes some of the financial and other incentives that can help companies retain key employees, while a sidebar explains how including them on the M&A deal team can ensure their loyalty.
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Fraud interviews: What to expect
Fall 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 418
Abstract: When it comes to interviews with suspected fraud perpetrators, qualified fraud experts often can get the best results. They’re well trained to pursue suspicions of financial fraud, elicit new information and detect deception. This article explains what to expect from the fraud interview process.
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FLP owners score yet another Tax Court victory
Fall 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 615
Abstract: In addition to achieving other legitimate business purposes, holding discounted units in a family limited partnership (FLP) can result in a lower estate value than holding the underlying, undiscounted assets in an estate. Yet the IRS has successfully used IRC Section 2036 to persuade the U.S. Tax Court to eliminate discounts for lack of control and marketability in several FLP cases. This article reviews an exception to that trend — a case in which the agency wasn’t successful.
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Devastating consequences – How appraisers estimate damages for new or unlaunched companies
Fall 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 626
Abstract: In today’s uncertain and competitive business environment, economic damages can be particularly devastating for a new or as-yet-unlaunched company. Under such difficult circumstances, appraisers can help these “green” businesses in court by using specific valuation techniques to calculate estimated damages. This article explains how financial experts make projections and apply discounts when little or no performance data is available.
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The rule has changed – Expanded work product protections win out in revised Rule 26
Fall 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 848
Abstract: Absent congressional intervention, proposed amendments to the Federal Rules of Civil Procedure will likely foster significant changes in expert witness practices. The proposed amendments, with three exceptions, make expert draft reports between an expert and the retaining attorney subject to work product protections. This article discusses these amendments, the impetus for their creation, and their implications for the development and discovery of testifying witnesses’ draft reports. A sidebar talks about the effect of a similar rule upon discovery practices in New Jersey.
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What’s the life expectancy of a business?
September / October 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 433
Abstract: While financial experts use mortality tables and life expectancies to estimate a person’s future income, standardized “mortality tables” for businesses don’t exist. This article looks at one finance professor’s contention that applying life expectancy concepts to businesses would result in more accurate valuations.
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New expert discovery rules should reduce litigation costs
September / October 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 664
Abstract: This article discusses proposed amendments to the Federal Rules of Civil Procedure that will likely have a big impact on the attorney-expert relationship. One of the most significant changes is amended Rule 26, which will extend attorney work-product protection to draft reports by testifying experts and, with certain exceptions, to communications between experts and retaining counsel. It’s hoped that this will avoid needless discovery costs.
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Quantifying economic losses when mitigating circumstances come into play
September / October 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 729
Abstract: It’s easy to focus on quantifying a plaintiff’s economic losses during a trial and overlook the duty to mitigate damages. But the plaintiff does bear some responsibility for taking reasonable steps to avoid or minimize damages. This article looks at a case in which a printing company’s failure to mitigate damages by pursuing an inexpensive option resulted in its claim being denied. For a damages expert, estimating the impact of various mitigation alternatives requires considerable professional judgment.
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How the recession has impacted business valuation
September / October 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1006
Abstract: Should businesses that were valued on the eve of the economic downturn be revalued in light of subsequent events? This article looks at a Florida marital dissolution case in which a restaurant valued in December 2007 lost value during the recession that followed. This case confirms that, when valuing a business, appraisers generally shouldn’t consider events that take place after the valuation date. A sidebar examines Financial Accounting Standards Board standards regarding the treatment of subsequent events for accounting purposes.
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Would you, should you, reuse an appraisal?
September / October 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 471
Abstract: A business appraisal provides a snapshot of a company’s value on a specific date and for a specific purpose. Although it may be tempting to reuse old valuations to save time and money, recycled valuations may cause more problems than they solve. This article uses a hypothetical case study to illustrate the potential drawbacks of reusing an old appraisal for a different purpose.
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Estate of Black: Another notch in taxpayers’ FLP belts
September / October 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 599
Abstract: Family limited partnerships (FLPs) are proven estate planning tools. But the IRS sometimes attacks a partnership’s discounts or business purpose under Internal Revenue Code Section 2036, “Transfers with retained life estate.” This article notes the importance of proper FLP structure, explaining that when the IRS succeeds in proving that the donor or decedent retains ongoing economic benefit — either express or implied — it assesses gift and estate taxes for the full value of the partnership’s underlying assets without allowing discounts for lack of control and marketability.
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Great expectations: Finding the value of startups
September / October 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 791
Abstract: It’s difficult to value a startup business when it has no track record and has never generated positive cash flow — or even revenues. Without history to lead the way, startups often derive value from exceptional growth expectations. This article explains that valuators know how to spot the clues, including management style, business type, market size, potential growth opportunities and development stage, which can help them more accurately estimate future performance. A brief sidebar explains that employee stock options (ESOs) can be an effective way for startup companies to attract and retain key employees.
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Transaction databases can be powerful tools
September / October 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1007
Abstract: Appraisers use the guideline merger and acquisition method, a subset of the market approach, to derive a company’s value using samples of comparables (or guideline companies). To do so, they frequently refer to several private transaction databases to select appropriate comparable transactions. This article lists some of these database sources and points out some of their pros and cons. In addition to noting several criteria valuators use to collect a manageable sample of strong comparables, the article discusses how valuators calculate appropriate pricing multiples. A sidebar looks at other factors they typically consider.