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Viewpoint on Value
Showing 1–16 of 390 results
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Building blocks for the cost of capital – How interest rates and market volatility affect business valuations
March / April 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 449
Abstract: Today’s market conditions are uncertain. Higher interest rates and stock market volatility generally translate into lower business values. This article discusses how negative market conditions impact value and ways to counteract those effects.
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Valuation of conservation easement leads to battle of experts
March / April 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 580
Abstract: Judges aren’t valuation experts. Their role is to weigh the evidence on the record and determine the value of property based on expert opinions. This article summarizes a recent U.S. Tax Court case that provides guidance on the method used to value a conservation easement for charitable deduction purposes, as well as valuable insight into the court’s role in evaluating expert testimony. Champions Retreat Golf Founders, LLC v. Commissioner, T.C. Memo 2022-106 (Oct. 17, 2022).
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Using structured settlements to finance business sales
March / April 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 603
Abstract: Structured settlements are commonly used to pay claims and damage awards in personal injury lawsuits. However, these arrangements — composed of annuity payments from an insurance company — can also be used to finance the sale of some closely held businesses. This article explains how this creative strategy works.
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In re Tesla Motors, Inc. Stockholder Litigation – SolarCity acquisition satisfies “entire fairness” review
March / April 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 882
Abstract: Under the business judgment rule, courts generally defer to a board of director’s decisions regarding corporate transactions. However, if a plaintiff can show that a board acted in bad faith, engaged in illegal acts, was grossly negligent or had a conflict of interest, courts will generally apply the more stringent “entire fairness” test to evaluate the board’s actions. This article summarizes a recent case that demonstrates how this test works. A sidebar explains how fairness opinions may help avoid valuation disputes. In re Tesla Motors, Inc. Stockholder Litigation, 298 A.3d 667 (Del. 2023). Kahn v. M & F Worldwide Corp.,88 A.3d 635 (Del. 2014).
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Business valuation, real estate appraisal — or both?
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: Every business needs real estate, whether it’s commercial office space, a retail store, a manufacturing facility or a home office. If a valuation is needed, should you use a business valuation professional, a real estate appraiser or both? This article explores situations where this question may come into play and how to proceed in order to achieve the most meaningful valuation results.
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Connecticut court determines fair value of 50% ownership interest
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 621
Abstract: Fair value in shareholder disputes is typically defined by state law. It generally equals fair market value without discounts for lack of control or marketability. This article discusses a recent case in Connecticut that addressed this issue in the context of a dissolution proceeding. Buccieri v. New Hope Realty, Inc., 2022 Conn. Super. LEXIS 2230 (Oct. 20, 2022).
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How to factor fraud risks into a business valuation
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 612
Abstract: An important part of the valuation process is identifying potential risks and gauging whether management has taken appropriate action to mitigate those risks. This article explains how valuators evaluate internal controls and corporate culture, tailoring their analyses based on the subject company’s size, complexity, industry and goals.
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Clary Hood, Inc. v. Commissioner – Tax Court provides guidance on determining reasonable compensation
January / February 2024
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 879
Abstract: The issue of reasonable compensation frequently comes up when valuing a business. In Clary Hood, Inc. v. Commissioner, the U.S. Tax Court provided valuable guidance on the determination of reasonable compensation as well as the sufficiency of expert testimony on the subject. This article explores the court’s decision, which not only addresses a federal tax issue, but also clarifies how to determine reasonable compensation in other contexts, such as shareholder disputes and divorce matters. T.C. Memo 2022-15, affirmed in part and vacated in part (with respect to penalties), Clary Hood, Inc. v. Commissioner, 69 F.4th 168 (4th Cir. 2023).
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Are PPP funds includable in business income for valuation purposes?
November / December 2023
Newsletter: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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: Viewpoint on Value
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.