EXP
Showing 97–112 of 145 results
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How valuable is an outside expert in court? Recent decision offers an answer
Summer 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 622
Abstract: Many people believe that an outside damages expert can lend credibility and objectivity to a legal argument. But, every so often, this belief is put to the test. This article examines one court battle in which the plaintiff alleged misappropriation of trade secrets. In disputing liability for compensatory damages, the defendant argued that the damages expert provided insufficient evidence to support its lost profits calculation. But the court found that the expert’s assumptions were well supported by the evidence and testimony of several independent witnesses, and awarded the plaintiff the full amount of compensatory damages.
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Get real! – Using normalized earnings to clarify financial statements
Summer 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 656
Abstract: In a time of great economic uncertainty, the estimated value of a given company can seemingly turn on a dime. To bring clarity to the situation, appraisers can calculate a company’s “normalized earnings.” This process allows them to determine, among other things, whether a struggling business is being mismanaged or whether a prosperous company is doing as well as it seems. This article looks at the different accounting methods that may lead to a need for adjustments, and examines the kinds of adjustments that valuators make.
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Computer fraud 101
Summer 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: As digital data has become indispensable in almost every industry, the incidence of computer fraud has climbed accordingly. Although the schemes can prove difficult to detect, it’s possible to help clients minimize their losses by understanding the typical methods of computer fraud and calling in qualified experts at the first sign of trouble. This article discusses three types of computer manipulation schemes.
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Impairment puts balance sheets to the test
Summer 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 894
Abstract: One challenge that companies face today is identifying assets acquired before the global financial crisis that have since declined in value. Once identified, management must quantify and report the amount of impairment. But estimating and reporting impairment is a complex process, and many in-house accounting personnel lack the requisite training to test for asset impairment — or to provide testing that can withstand outside scrutiny. This article provides an overview of impairment and shows why it’s imperative to hire a credentialed appraiser to get impairment testing done right. A sidebar looks at common impairment testing pitfalls.
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Fraud detection: Tools for uncovering billing schemes
Spring 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: Billing schemes rank among the most common types of occupational fraud, according to the Association of Certified Fraud Examiners (ACFE). But fraud investigators have several tools available to ferret out billing schemes, including data mining, ledger reviews, statistical sampling, and anonymous hotlines.
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Rebuttal reports bring a third opinion to the table
Spring 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 631
Abstract: If the respective valuation reports of two parties are so far apart that an agreement seems unlikely, a third appraiser can provide another opinion in the form of a rebuttal report. Rebuttal experts streamline the appraisal process and reduce overall appraisal costs. Rebuttal reports also facilitate settlement by pinpointing differences and putting technical appraisal issues in more user-friendly language. But rebuttal reports come in many forms, and court procedural rules and professional appraisal standards provide little guidance on how to prepare written rebuttals.
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It’s complicated – Goodwill in divorce proceedings provokes much conflict
Spring 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 850
Abstract: When a divorce includes a private business interest, expect a fight. Value is in the eye of the beholder, and valuation discrepancies are most common when a business has intangible assets. It’s not uncommon for judges to look to other jurisdictions for guidance. This article looks at how business value can be broken down into two pieces; how U.S. courts divide goodwill three different ways; and how many jurisdictions break down intangible value into two pieces. A sidebar discusses a Kentucky Supreme Court decision to include enterprise goodwill, but exclude personal goodwill, from marital estates.
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Mirror images – Court considers plaintiff’s access to defendants’ hard drives
Spring 2010
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 615
Abstract: The extent of access that parties should have to each other’s electronically stored information (ESI) continues to roil the courts. In one recent case, a court looked into whether a plaintiff could make “mirror images” of the defendants’ hard drives. The defendants made three arguments: 1) state law prohibited this disclosure of privileged health information; 2) “broad” search terms would surely “pull up” privileged information; and 3) state regulations didn’t authorize unrestricted direct access to the drives. But the court disagreed, citing evidence that raised an inference of the defendants’ improper conduct in handling the information.
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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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For What It’s Worth: Valuation in the Courts – Attorney-client privilege not guaranteed
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 413
Abstract: Attorney-client privilege is a cornerstone of our legal system. Yet, in a recent minority shareholder suit for fraud and breach of fiduciary duty, the New York Supreme Court ruled that attorney-client privilege doesn’t generally extend to communications between a valuation expert and attorney. Thus, before sharing information with a financial professional or committing a conversation to writing, business owners and their attorneys need to consider how opposing counsel might use it in the case at hand.
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Research shows bankruptcy drives financial statement fraud
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: The rough economy is pushing an increasing number of businesses into bankruptcy. And, according to recent research, financial state¬ment fraud may be more prevalent in companies that file for bankruptcy. A couple of recent studies take a look at where the fraud is coming from and whether Sarbanes-Oxley controls are proving effective.
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The value of a workforce – Appraisal of human capital often necessary, complex
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 639
Abstract: The rough economy has brought an uptick in the number of layoffs and furloughs. And when such events occur, the estimated value of the affected workforce can change. Thus, appraisals of this nature are becoming more and more prevalent. There are a variety of specific reasons to obtain a workforce appraisal, including when pricing and structuring a business sale or merger or for determining income and property taxes. And there are three basic valuation approaches that might be used.
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Splitting charitable remainder trusts in divorce – What are the tax consequences?
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 955
Abstract: While the division of some marital assets in divorce can seem straightforward, questions have arisen about making a pro rata, 50-50 division of a charitable remainder trust (CRT) into two trusts for the spouses. In response, the IRS issued Revenue Ruling 2008-41, which addresses the tax consequences of such a division. Specifically, this article addresses excise taxes in regard to self-dealing, taxable expenditures, and asset transfers between private foundations, while a sidebar looks at whether a CRT can be divided into separate trusts for multiple — but nonmarried — income recipients without triggering adverse tax consequences.