Valuation/Lit. sup./Fraud/M&A
Showing 1313–1328 of 1569 results
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For What It’s Worth: Valuation in the Courts – Court upholds FLP despite postdeath funding
Winter 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 516
Abstract: In a recent case, a federal court upheld a family limited partnership (FLP) in an estate tax refund case — even though the FLP wasn’t funded before the decedent died. How did the family involved pull this off? It was important that state law provided that an owner’s intent to make an asset partnership property caused that asset to become the partnership’s property — regardless of whether legal title was transferred.
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Oh, what might have been – How appraisers calculate lost profits
Winter 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 685
Abstract: When a business suffers what it believes to be wrongful conduct leading to lost profits, an appraiser is often asked to estimate “what might have been.” That is, for the resulting litigation, he or she must typically calculate, not just lost sales, but also the difference between lost sales and avoided costs. The appraiser starts by distinguishing between direct and indirect costs. He or she is then free to use multiple methodologies and compare the results to historical data, independent estimates or industry statistics. A lost profits calculation is a complex endeavor — but it’s often absolutely necessary in certain forms of litigation.
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5 common vendor fraud schemes to watch out for
Winter 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 436
Abstract: These are busy times for fraud investigators, with businesses more concerned than ever about protecting their bottom lines. One way a company’s profits could suffer is if it’s struck by vendor fraud. But by recognizing the signs of this crime and initiating a timely investigation, businesses can minimize the resulting losses. If vendor fraud or another fraudulent scheme is suspected, a fraud expert’s involvement is critical. There are five common schemes to watch out for.
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Pointing fingers lead to fairness opinions – An increasingly popular transactional safeguard
Winter 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 891
Abstract: In a difficult economy, many parties want to point fingers when projected results fall short, acquisition synergies fail to materialize or insolvency ensues. For this reason, among others, fairness opinions are becoming increasingly popular. Simply put, a fairness opinion addresses whether a transaction appears “fair” from a financial point of view. Fairness opinions aren’t legally mandated, but they can help facilitate major transactions, such as mergers and acquisitions (M&As), spin-offs, stock repurchases, and divestitures. This article looks at what goes into fairness opinions and their different applications, while a sidebar discusses potential conflicts of interest among fairness opinion providers.
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Nonpublic information considered in valuing securities
January / February 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 607
Abstract: In one recent case, a district court held that it was reasonable for a jury to conclude that material nonpublic information possessed by the defendants affected the fair market value of certain securities. The case is significant because it seems to offer a novel interpretation of the phrase “reasonable knowledge of relevant facts” in the definition of fair market value. The decision suggests that even nonpublic information can be a “relevant fact.”
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Start early, end strong – Tax planning in litigation
January / February 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 580
Abstract: Tax planning at the beginning of a case can have a significant impact on the eventual financial outcome. There’s a substantial difference between an award or settlement that’s subject to income tax and one that’s not. Most cases involve a combination of taxable and nontaxable claims; the ultimate tax treatment of an award or settlement depends on how it’s allocated among those claims. For example, some damages are excluded from income — and, even for those that aren’t, the distinction between wage and nonwage damages is important. It pays to give some thought to tax issues early so as to secure the most tax-advantageous result for a client.
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Gazing into the crystal ball – How contingencies affect a business’s value
January / February 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 762
Abstract: As part of the definition of “fair market value,” both parties in a transaction must have “reasonable knowledge of the relevant facts.” But a host of contingencies are often among the relevant facts, which means that valuators need to look into the future to arrive at fair market value. Both contingent losses and contingent gains must be considered, and they differ in their accounting treatment. For the valuator, the challenge is to quantify any contingencies and adjust the company’s value accordingly.
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The expert’s role in accountant liability cases
January / February 2010
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1144
Abstract: In lawsuits involving business failures, it’s increasingly common for shareholders and other plaintiffs to name the business’s accountants or auditors as defendants. An accountant’s liability depends on several factors, but it’s first important to know the applicable professional standard he or she uses. This article discusses those standards, along with the accountant’s level of responsibility for the financial statements. A sidebar discusses the extent of an auditor’s responsibility to uncover fraud.
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Creating a reliable buy-sell agreement — A valuation provision must be at its heart
January / February 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1074
Abstract: A buy-sell agreement can be an important tool in smoothing any business ownership transition — whether the aim is to maintain control, provide liquidity and a ready market for the stock, retain key employees, or ensure an orderly ownership transfer in the case of death, disability or divorce. And at the heart of every successful buy-sell agreement is a well-reasoned, supportable value. This article explains the various approaches a valuator might use to set the price in a buy-sell agreement and ensure the resulting valuation is objective and fair to all shareholders.
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Think outside the box in divorce
January / February 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: The rules governing equitable marital dissolutions vary from state to state. But divorce courts often consider cases in other jurisdictions, especially when relevant legal precedent in their own jurisdictions is lacking. This article uses a recent tax case, Wechsler v. Wechsler, to illustrate the importance of considering Tax Court precedent if a marital estate includes a holding corporation with significant built-in capital gains tax obligations. Citations: Wechsler v. Wechsler, 2008 WL 4635832, Oct. 21, 2008; Estate of Dunn v. Commissioner, 301 F.3d. 339, 5th Cir., 2002; Estate of Jelke v. Commissioner, U.S. Court of Appeals for the 11th Circuit, No. 05 15549, Nov. 15, 2007.
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Look for the silver lining — A volatile market translates into higher marketability discounts
January / February 2010
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1112
Abstract: Recent market volatility may provide an opportunity to gift private business interests at significant discounts, potentially saving a substantial amount in taxes. High volatility typically lowers marketability by making investments less attractive. This article discusses the data valuators generally use to support marketability discounts for private companies, including restricted stock and pre-initial public offering studies. It also looks at other factors that affect marketability, such as the pool of potential buyers, company size and financial performance.
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Selecting guideline companies in a volatile market
January / February 2010
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 592
Abstract: When valuation professionals appraise a business using the market approach, they rely heavily on data from comparable or “guideline” companies. Selecting appropriate guideline companies is always important in preventing over- or undervaluation, and this selection is based on the type of business being appraised. The market approach can be effective in times of general economic stability, but when the value of companies falls dramatically and the economic future is uncertain, guideline company data can be less reliable.
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Personal vs. enterprise goodwill – Another state recognizes the critical difference
January / February 2010
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 618
Abstract: The Kentucky Supreme Court recently joined the majority of states that distinguish between personal and enterprise goodwill when valuing a business. Such a distinction can significantly affect divorce settlements when one spouse holds an interest in a closely held business or sole proprietorship — particularly a professional practice. This article looks at how the court came to its conclusion that spouses will receive no share of their partner’s personal goodwill.
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What makes a fraud interview effective?
January / February 2010
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 737
Abstract: Conducting effective fraud interviews requires knowledge about everything from behavioral psychology to criminal law to accounting and auditing rules. Before they interview a suspect, experts gather documentary evidence, interview other employees, and learn about the potential perpetrator. Armed with that information, the investigator then conducts the interview in a way that minimizes a suspect’s defensiveness. Engaging a forensic expert to perform this critical task could mean the difference between recovery of stolen funds and a successful prosecution, and the perpetrator getting away with thousands — even millions — of dollars.
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Court’s FLP ruling is a win-win — and a reminder
January / February 2010
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 862
Abstract: The number of cases challenging the legitimacy of family limited partnerships (FLPs) continues to grow. Typically, these can be classified as either a taxpayer or an IRS win, but one recent U.S. Tax Court ruling is at least a partial victory for both sides. The case involves two separate transfers of interest in an FLP — one made three days before the decedent’s death. This article explains why one transfer passed muster with the Tax Court and the other didn’t, while a sidebar discusses whether the fair market value of the decedent’s assets in a QTIP trust were includible in her gross estate.
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Ask the Advisor – Q. Should my company consider a “virtual merger”?
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 467
Abstract: Even when the potential benefits of a merger are enticing, it may not be feasible because of poor economic conditions, lack of financing or regulatory issues. So some companies are opting for a “virtual merger” in which two businesses combine assets or operations yet retain at least some financial and managerial autonomy. A virtual merger can set the stage for a future merger by beginning the integration process now.