VLB

Valuation & Litigation Briefing

Showing 1–16 of 385 results

  • Are PPP funds includable in business income for valuation purposes?

    November / December 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 431

    Abstract: The Paycheck Protection Program (PPP) was enacted during the pandemic to help struggling businesses cover operating costs incurred while they were temporarily forced to shut down. This article summarizes a recent divorce case in which the Vermont Supreme Court upheld a decision allowing PPP funds to be included in income for business valuation purposes. Griggs v. Griggs, No. 22-AP-186 (Vt. Sup. Ct. March 10, 2023).

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  • How financial experts can help in bankruptcy

    November / December 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 548

    Abstract: There’s been a wave of business bankruptcies in 2023. Companies facing financial distress may find relief by assembling a team of experienced advisors to mitigate losses and, if possible, take corrective measures. This article highlights the role a financial professional can play in reorganizations, sales and liquidations.

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  • 11th Circuit: Plaintiff entitled to damages for future lost profits

    November / December 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 654

    Abstract: The U.S. Court of Appeals for the 11th Circuit in WL Alliance, LLC v. Precision Testing Group, Inc. upheld a jury award of $3.3 million, including $1.6 million in damages for lost future profits. The article summarizes why the appellate court upheld the district court’s decision to reject the defendants’ argument that lost future profits weren’t recoverable because they were too speculative. WL Alliance, LLC v. Precision Testing Group, Inc., No. 22-10780 (U.S. Court of Appeals, 11th Cir., Dec. 21, 2022).

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  • ES NPA Holding, LLC v. Commissioner – Tax Court finds arm’s-length sale was best evidence of value

    November / December 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 905

    Abstract: A U.S. Tax Court case recently addressed the issue of whether a taxpayer received a capital interest or a profits interest in a partnership for services provided to the partnership. Capital interests are immediately taxable, while profits interests generally are tax-deferred. This article summarizes this case, which concluded that the characterization of the taxpayer’s interest depended on the partnership’s fair market value. A sidebar provides ideas to bridge the gap between the seller’s asking price and the buyer’s offer price. ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55.

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  • Couple lets judge value their top marital asset – Absent expert testimony, court values interest in professional practice

    September / October 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 457

    Abstract: The Court of Appeals of North Carolina recently upheld a trial court’s valuation of the wife’s interest in a dental practice for equitable distribution purposes. Neither spouse offered expert testimony. This article summarizes the case and explains why the appellate court found that the trial court’s market-based valuation approach, while “rudimentary,” was a reasonable basis for the value of the business interest. Logue v. Logue, 877 S.E.2d 887 (N.C. Ct. App. 2022).

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  • Tax Court writes new chapter in ongoing saga of “tax affecting”

    September / October 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 564

    Abstract: In Estate of Cecil v. Commissioner, the U.S. Tax Court opined on whether “tax affecting” is appropriate when valuing noncontrolling, nonmarketable interests in pass-through entities using the income approach. This article summarizes the debate over tax affecting and why the court accepted tax affecting in this case. Estate of Cecil v. Commissioner, T.C. Memo 2023-24. Gross v. Commissioner, T.C. Memo. 1999-254, aff’d. 272 F. 3d 333 (6th Cir. 2001), cert. denied, 537 U.S. 827 (2002). Estate of Jones v. Commissioner, T.C. Memo. 2019-101.

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  • Limited time opportunity – Take advantage of the expanded unified gift and estate tax exemption

    September / October 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 680

    Abstract: The Tax Cuts and Jobs Act doubled the unified federal gift and estate tax exemption — and inflation has boosted it even further. For individuals who make gifts in 2023 or die in 2023, the unified exemption is $12.92 million (up from $12.06 million for 2022). Unfortunately, this favorable tax law provision is scheduled to expire after 2025, unless Congress extends it. This article explains why it’s time for private business owners to consider transferring ownership to the next generation or their favorite charities.

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  • How valuators can help distressed companies

    September / October 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 841

    Abstract: The COVID-19 pandemic took an economic toll globally, and many companies are still feeling its effects. This article discusses ways business valuation professionals can provide guidance for struggling companies — including by assessing risks and working with management to estimate going concern value in light of turnaround plans and, if necessary, liquidation value.

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  • Consultants vs. expert witnesses: It pays to hire both

    July / August 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 433

    Abstract: Outside professionals can play a critical role in litigation, particularly in cases involving complex financial or accounting issues. But it’s important to understand that these experts can serve two distinct roles as 1) consultants and 2) expert witnesses. This article explains the advantages of keeping these roles separate, rather than using one expert for both.

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  • Ramcell, Inc. v. Alltel Corporation – Court’s DCF analysis nearly quadruples stock valuation

    July / August 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 573

    Abstract: In a recent appraisal action, the Delaware Chancery Court determined that the fair value of the petitioner’s stock was $11,464 per share using the discounted cash flow (DCF) method. This was nearly four times the consideration received in connection with a short-form merger under Delaware law. This article provides a summary of the court’s ruling. Ramcell, Inc. v. Alltel Corporation, C.A. No. 2019-0601-PAF (Del. Ch. October 31, 2022).

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  • How to communicate statistical evidence to jurors

    July / August 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 639

    Abstract: Statistical evidence can be pivotal in many types of commercial litigation related to liability and economic damages. But this type of evidence can cause jurors’ eyes to glaze over with boredom, lack of comprehension or skepticism — unless it’s presented just right. This article describes ways to engage jurors and overcome hurdles when presenting statistical evidence in court.

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  • Using earnouts and CVRs in M&A transactions

    July / August 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 847

    Abstract: Earnouts can help bridge the valuation gap between buyers and sellers in mergers and acquisitions. This article provides an overview of the complex accounting and tax issues that earnouts and contingent value rights (CVRs) may raise. A sidebar highlights recent IRS guidance on structured attorneys’ fee arrangements. Childs v. Commissioner, 103 T.C. 634 (1994), aff’d without opinion, 89 F.3d 856 (11th Cir. 1996).

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  • Market approach: Don’t compare apples to oranges

    May / June 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 427

    Abstract: Under the market approach, the value of a business is derived from comparisons between the subject company and transactions involving similar businesses. This article lists factors to consider when selecting “comparables” and explains how the availability of closely tied comparables can affect an expert’s analysis. Heck v. Commissioner, T.C. Memo. 2002-34.

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  • M&A due diligence – Buyers should exercise caution when relying on financial statements

    May / June 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 626

    Abstract: Comprehensive due diligence is an essential part of acquiring a business. But it can be a daunting task — especially for inexperienced buyers. This article explains how financial professionals can help evaluate historical and prospective financial statements, identify potential hidden liabilities and misrepresentations, and prepare independent forecasts and projections. This information is critical when determining the optimal offer price and deal terms.

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  • Valuing collateral in bankruptcy

    May / June 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 663

    Abstract: A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes. This article summarizes this complex case, which demonstrates the leeway given to bankruptcy when valuing collateral and the importance of providing reasonable, well-supported valuation analyses and methods. In re Sears Holdings Corporation, 51 F. 4th 53 (2nd Cir. 2022).

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  • Court rejects valuation based on unsustainable past earnings

    May / June 2023
    Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 844

    Abstract: In a recent divorce case, an Arizona court of appeals vacated a trial court’s ruling regarding the value of a 25% business interest owned by the wife. This article summarizes the case. A sidebar highlights another Arizona appellate court decision in which a calculation of value was accepted without a full opinion of value. In re Riddle, No. 1 CA-CV 21-0249 FC (Ariz. App. April 5, 2022). Mikalacki v. Rubezic, No. 1 CA-CV 21-0483 FC (Ariz. App. October 18, 2022).

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