Valuation/Lit. sup./Fraud/M&A
Showing 1505–1520 of 1569 results
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Today’s appraisers bring various credentials to the table
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 783
Abstract: Many business owners and attorneys often find themselves overwhelmed by the many acronym-heavy credentials associated with the ever-growing pool of qualified appraisers. Understanding these credentials, and the standards that create them, can help business owners and attorneys not only choose the right appraiser, but also better understand the final work product produced. This article describes some of the more common valuation credentials.
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No business operates in a vacuum – How current and prospective economic conditions affect value
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1095
Abstract: Try as it might, no management team can control every factor that affects a company’s success or failure. Outside forces, such as government regulation, global competition, interest rates, labor supply and tax policy, may all influence the organization’s estimated value. In other words, no business operates in a vacuum. This article discusses an appraiser’s role in this context: to size up current and prospective economic conditions and synthesize them into a meaningful value estimate. (Updated 11/14/12)
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Taking a red pen to financial statements – Adjustments a must for many private business valuations
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 715
Abstract: Financial statements are an important source of valuation data, but they tell only part of the story. An accurate appraisal hinges on a comprehensive understanding of the subject company’s relative performance and earnings power. This article explains how, to clarify matters, an appraiser often makes various financial statement modifications, including nonrecurring, normalizing, control and balance sheet adjustments. (Updated 2/7/12)
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Give your appraisal a dose of reality
July / August 2008
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 500
Abstract: Before valuators finalize their conclusions, they step back and ask, “Would this number make sense in the real world?” Experts typically rely on their professional experience to answer this question. But they may also turn to various sanity checks. This brief article lists some sanity checks valuators may turn to, including industry rules of thumb, the justification of purchase (JOP) test and other sources of supplemental data.
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Buy-sell agreements in divorce — Having good advice is key
July / August 2008
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: Dissolving a marital estate that includes a private business interest can be fraught with complications. One of the first steps is to disclose and reconcile all relevant valuation evidence, including buy-sell agreements. The buy-sell provisions of partnership or shareholder agreements are intended to protect ownership interests. But they may come back to haunt owners or their spouses later in divorce. This article discusses a recent case that illustrates the importance of both spouses having expert valuation advice to help navigate the ins and outs of these agreements in a marital dissolution case.
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What you see may not be what you get — Making complex valuation adjustments
July / August 2008
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 877
Abstract: The process of valuation often requires adjustments to ensure the final numbers make sense for a particular company. Adjustments can affect how a valuator applies the cost, market and income approaches. So, it’s imperative to consider their impacts throughout the valuation process. This article explains the different categories of adjustments, using examples to illustrate their effects on value. It notes that, because discrepancies between two expert opinions can occur, expertise is key in applying the appropriate valuation adjustments.
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Daubert study highlights expert witness vulnerabilities
July / August 2008
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 779
Abstract: Since the U.S. Supreme Court’s 1999 decision in Kumho Tire v. Carmichael extended the Daubert criteria for admissibility of expert scientific testimony, federal and state courts have heard more challenges to financial expert testimony. A PricewaterhouseCoopers study of post-Kumho challenges to financial experts from 2000 through 2006 identifies trends that attorneys may be able to leverage when submitting expert testimony. This article talks about the study’s findings and how they can be used to prevent expert testimony from being excluded.
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Why proper training and experience are essential in an expert
July / August 2008
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 627
Abstract: This article discusses a recent tax court decision, Estate of Thompson v. Commissioner, and how it serves as a reminder that attorneys and their clients can’t afford to cut corners when selecting experts. Specifically, choosing experts based on criteria other than their experience and expertise with the specific matter at hand may fail to demonstrate reasonable cause and good faith.
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Ask the Advisor – Q: What is a fairness opinion and do I need one?
June / July 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 490
Abstract: This column explains how a fairness opinion assesses whether a transaction is fair to shareholders and others involved by comparing the deal with similar ones and evaluating any meaningful differences. Although buyers and sellers use these opinions to shield themselves from shareholder lawsuits, the article cautions that they are not foolproof against litigation, nor do they necessarily reflect the full value of a proposed deal.
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Focus on the future – Anticipating acquisition success with strategic due diligence
June / July 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 600
Abstract: Sometimes buyers conduct due diligence too quickly — or too narrowly — and focus only on a company’s historical performance, rather than on how it’s likely to perform once the deal is complete. For an advance look at an acquisition’s potential success or failure, buyers should consider conducting strategic due diligence. This includes looking closely at the health of a company’s market, its customer loyalty, competitive positioning and management effectiveness. (Updated 9/27/12)
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New accounting rules may affect your M&A deal
June / July 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 899
Abstract: New accounting rules issued by the Financial Accounting Standards Board (FASB) could require M&A participants to perform more extensive valuation work. They might also increase costs and lengthen the negotiation process. This article explains how the rules require buyers to scrutinize certain provisions in some transactions, report transaction fees differently, provide more upfront recognition of deal contingencies, and even terminate some marginal deals.
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The journey ahead – Map out succession, retirement and estate plans before you exit your business
June / July 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 960
Abstract: To ensure a smooth exit from the workplace, business owners must establish their retirement and estate plans well before they’re ready to sell or transfer their business. And if they don’t already have a succession plan, it’s essential to do that now to ensure the future success of the company and its employees. This article lists issues owners should consider to ensure they’ve protected their own financial security, heirs and the business they’ve built.
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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.
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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).
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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).
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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.