Valuation/Lit. sup./Fraud/M&A

Showing 1505–1520 of 1557 results

  • How do taxes “affect” S corporation valuations?

    May / June 2008
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 449

    Abstract: For many years, “tax-affecting” the earnings of S corporations and other pass-through entities was a widely accepted valuation practice. But that changed in 1999, when the Tax Court ruled in Gross v. Commissioner that tax-affecting was inappropriate when valuing a minority interest in an S corporation. However, this brief article discusses recent cases which show that, though courts won’t accept full tax-affecting to reflect remote risks, tax-affecting can still be appropriate in the right circumstances.

    Read More

  • Something to prove – Courts increase burden on experts

    May / June 2008
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 787

    Abstract: This article summarizes three recent cases that highlight the critical role that burden of proof can play in cases involving expert financial testimony. The cases illustrate how important it is for litigants to engage qualified experts and to avoid taking shortcuts when performing damages or valuation analysis. A qualified expert can meet burden-of-proof standards by performing a thorough analysis that will stand up in court. Citations: J.P. Morgan Chase & Co. v. Commissioner, 458 F.3d. 564 (7th Cir. 2006). Morgan Stanley v. Coleman, 955 So. 2d. 1124 (Fla. App. 2007). Estate of Thompson, 499 F.3d. 129 (2d Cir. 2007).

    Read More

  • Fraud’s a factor in solvency analysis

    May / June 2008
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 899

    Abstract: In bankruptcy cases, a lot hinges on whether the debtor was insolvent when certain transactions took place. For example, some payments and transfers the debtor made within a specified time before filing for bankruptcy may be recovered as fraudulent transfers if the debtor was insolvent at the time of the transaction. This article discusses a recent case that addresses issues regarding fraud’s impact on insolvency. Citation: Edgewater Medical Center v. Edgewater Property Company, 373 B.R. 845 (Bankr. N.D. Ill. 2007).

    Read More

  • A financial expert’s role in alter-ego cases

    May / June 2008
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1147

    Abstract: Operating as a corporation encourages investment by insulating shareholders’ personal assets against liability for corporate debts. But protection isn’t absolute. A plaintiff unable to collect a judgment from a corporation may ask a court to invoke its powers to “pierce the corporate veil” and hold owners responsible. This article explains how valuation experts can provide insight into whether particular corporate practices, such as shared services or related-party transactions, are appropriate or indicate an improper “alter-ego” relationship.

    Read More

  • Valuators in the field

    May / June 2008
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 397

    Abstract: Site visits are an important part of the valuation process. Not only do they enhance a valuator’s understanding of business operations, but they also provide an opportunity to conduct face-to-face management interviews. This brief article lists what valuators look for during site visits, including asset and facility condition and whether there are any capacity issues.

    Read More

  • Appraising appraisals — How to read a valuation report

    May / June 2008
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 551

    Abstract: To understand an appraisal opinion, readers must wade through unfamiliar financial jargon, subjective assumptions and pages of complex mathematical computations. And comparing two widely divergent analyses to ascertain which opinion is more reliable is even more challenging. This article highlights some key elements that should appear in a comprehensive, reliable valuation report.

    Read More

  • Taxpayer victory in the battle over built-in capital gains tax

    May / June 2008
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1072

    Abstract: Built-in capital gains tax is an economic reality for C corporations. Recent Tax Court rulings have forced the IRS to concede that hypothetical investors consider imbedded tax liabilities when buying and selling C corporations. This article discusses a recent case, Estate of Jelke v. Commissioner, which provides an example of the ongoing debate as to whether valuators should apply dollar-for-dollar or discounted reductions for built-in capital gains tax liabilities. Citations: Estate of Jelke v. Commissioner, U.S. Court of Appeals for the 11th Circuit, No. 05-15549, Nov. 15, 2007. Estate of Davis v. Commissioner, 110 T.C. 530, 1998. Estate of Eisenberg v. Commissioner, 155 F.3d. 50, 57, 2d. Cir., 1998. Estate of Jameson v. Commissioner, 267 F.3d. 50, 57, 2d Cir., 1998. Estate of Dunn, 301 F.3d. 339, 5th Cir., 2002.

    Read More

  • FIN 46 may affect valuations of partnership interests

    May / June 2008
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 575

    Abstract: Several years ago, the Financial Accounting Standards Board released Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities. This interpretation requires the consolidation of business enterprises with certain related entities on their financial statements. This article talks about the implications of FIN 46 when valuing partnership interests for litigation purposes, including consolidating a variable interest entity.

    Read More

  • Federal court denies IRS access to taxpayer’s work product

    May / June 2008
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1112

    Abstract: A recent federal court decision lends support to taxpayers’ efforts to protect their tax accrual workpapers from disclosure to the IRS. The ruling in U.S. v. Textron Inc. (D.R.I. 2007) could prove critical in light of a relatively new accounting standard, FIN 48, which requires corporate taxpayers to document their uncertain tax positions and make related public disclosures. But because the years at issue in Textron occurred before the standard’s effective date, it remains unclear whether required public filing disclosures required will waive work product privilege.

    Read More

  • Ask the Advisor – Q: How can I prepare my business for a tighter credit cycle?

    April / May 2008
    Newsletter: Merger & Acquisition Focus

    Price: $225.00, Subscriber Price: $157.50

    Word count: 481

    Abstract: This column suggests ways businesses can prepare for and better weather tightened credit conditions. These include keeping lenders informed, managing liquidity and working with a credit arranger to negotiate and develop credit terms and documents.

    Read More

  • Put your money where your mouth is – Communicating effectively with M&A stakeholders

    April / May 2008
    Newsletter: Merger & Acquisition Focus

    Price: $225.00, Subscriber Price: $157.50

    Word count: 714

    Abstract: Clearly communicating an M&A with employees, investors and other stakeholders can mean the difference between a good deal and no deal. Market perceptions play a critical role in how mergers progress, so both sellers and buyers need to develop a formal communications plan that will help relieve anxiety about impending changes and drum up internal and external support. The plan should cover the timing and form of communications, explaining the benefits of the transaction and responding to frequently asked questions. (Updated 7/31/12)

    Read More

  • Does your business measure up? Benchmarking financial performance

    April / May 2008
    Newsletter: Merger & Acquisition Focus

    Price: $225.00, Subscriber Price: $157.50

    Word count: 850

    Abstract: Benchmarking — or comparing a company’s financials to those of industry peers and its own historical performance — can help business sellers determine value and achieve a fair sale price, and may give buyers insight into the future profitability of a potential acquisition. This article explains which data is most important to potential acquirers and how sellers can prepare it to give the clearest picture of the business. It also provides a list of benchmarking data sources.

    Read More

  • Improve your turnaround’s forecast for long-term success

    April / May 2008
    Newsletter: Merger & Acquisition Focus

    Price: $225.00, Subscriber Price: $157.50

    Word count: 724

    Abstract: Companies struggling with poor cash flow, inadequate capital and weak leadership are particularly vulnerable to economic downturns and today’s global business challenges. To turn an unprofitable company around, new owners must have a plan and be ready to implement it as soon as the ink on the deal is dry. As this article discusses, a buyer’s plan should include divestiture of unprofitable segments, a long-term cash management plan and a review of accounting and reporting systems. It also suggests ways for sellers of troubled businesses to prepare for buyer scrutiny.

    Read More

  • Jelke reverses Tax Court on discount for built-in gains tax

    Spring 2008
    Newsletter: Expert / Valuation & Litigation Concepts

    Price: $225.00, Subscriber Price: $157.50

    Word count: 470

    Abstract: The recent appellate court decision in Estate of Jelke v. Commissioner (11th Cir. 2007) could dramatically affect estate tax liability. This article summarizes the case’s history and court’s ruling, and explains why it’s a boon to estate taxpayers and could be relevant to the valuation of C corporations in divorce matters.

    Read More

  • Calculating construction defect damages

    Spring 2008
    Newsletter: Expert / Valuation & Litigation Concepts

    Price: $225.00, Subscriber Price: $157.50

    Word count: 357

    Abstract: Even construction jobs that finish on time and within budget can produce claims down the road if defects later arise. As this short article discusses, the remedy in a construction defect case usually comes down to the most feasible and reasonable repair that puts the owner in as close to the same position as if the contractor had performed properly. (Updated 8/22/12)

    Read More

  • How income reconstruction builds a case against fraudsters

    Spring 2008
    Newsletter: Expert / Valuation & Litigation Concepts

    Price: $225.00, Subscriber Price: $157.50

    Word count: 626

    Abstract: Sometimes a company discovers the misappropriation of assets and has a guess as to who may be behind it but no direct evidence to back up its suspicions. A financial expert can help by using income reconstruction to show that an employee’s estimated actual income is higher than his or her known income. This article covers some of the common methods of income reconstruction and what circumstances may indicate that it should be used. (Updated 11/30/12)

    Read More