July / August
Showing 433–448 of 616 results
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Early fraud detection: How the SEC uses data mining
July / August 2012
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 481
Abstract: The most effective strategy for combating fraud is a combination of prevention and early detection. Increasingly, organizations are turning to risk analytics, such as data mining, to uncover fraudulent activity. This article specifically shows how the Securities and Exchange Commission (SEC) has had great success using data mining to detect fraudulent hedge fund activity.
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Recession troubles linger — How distressed businesses are valued
July / August 2012
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 653
Abstract: Distress sales and auctions may offer bargains, but rock bottom prices shouldn’t cloud one’s business judgment. Acquisition due diligence is very important. This article shows how valuators can modify their appraisal approach to avoid over- or undervaluing a distressed business. A sidebar lists three financial metrics that can help buyers evaluate whether asking prices make sense.
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Developing a theory of damages? Read the contract!
July / August 2012
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 698
Abstract: This article discusses a case in which a federal court allowed most of a damages expert’s testimony regarding lost profits, but wouldn’t allow the expert to testify regarding the “residual value” of the plaintiff’s business relationship with the defendant. That element of damages conflicted with the terms of the parties’ contract, which contained a nonassignment clause. This case illustrates why, when breach or wrongful termination of a contract is involved, it’s critical for lawyers and their damages experts to consider the contract’s provisions when developing their theory of damages. Citation: Allstate Sweeping, LLC v. City and County of Denver, 1:2010cv00290, Feb. 10, 2010 (Colorado District Court)
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Fraud affects business valuations, too
July / August 2012
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 371
Abstract: Occupational fraud occurs when someone uses his or her job for personal enrichment through the deliberate misuse or misapplication of an employer’s resources or assets. Such activity can skew financial results and lead to erroneous value conclusions — unless a valuator adjusts the financial statements for fraud. Appraisers don’t audit for fraud in the course of a typical business valuation assignment, but this short article explains that companies can still include them in their overall efforts to prevent fraud.
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Discount rates vs. capitalization rates
July / August 2012
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 590
Abstract: Some clients mistakenly use the terms “discount rate” and “capitalization rate” (cap rate) interchangeably. But they are two different concepts. It’s important to understand how these terms differ to prevent erroneous conclusions and courtroom blunders. This article discusses both types of rates and gives an example of how each works.
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Virtual reality — Determining the value of intellectual property
July / August 2012
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 817
Abstract: In an ever more virtual world, business owners increasingly depend on intellectual property (IP) to generate value for their companies. But determining the value of IP can be challenging. In addition to obtaining guidance from professional appraisal organizations, appraisers use several methods to determine what these intangible assets are really worth. This article explains the methods they use in valuing IP and the approaches they take to value patents, copyrights and trademarks.
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Winning the DLOM debate — Use an appraiser to support marketability discounts
July / August 2012
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 971
Abstract: The discount for lack of marketability (DLOM) attempts to capture the various attributes associated with selling a private interest. But a taxpayer and the IRS may disagree on what constitutes a reasonable DLOM for a particular set of facts and circumstances. This article describes how valuation professionals analyze empirical data to quantify a reasonable DLOM for each subject company based on its specific attributes. A sidebar discusses whether it’s possible to take a DLOM on a controlling interest.
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Unreliable data could doom your next divorce case
July / August 2012
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 490
Abstract: This article examines a recent divorce dispute that illustrates how unreliable data can undermine an expert’s estimate. When a divorcing couple disagreed about the value of the business owned by the husband and his brother, the husband’s expert lowered his final estimate after making calculations based on the brother’s forecast. But an appeals court decided that a valuation “based on an off-the-cuff forecast by a nonexpert” didn’t provide a more accurate value than that generated exclusively from historical figures.
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When the cupboard’s bare – How fraud experts prove inventory theft
July / August 2012
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 717
Abstract: Inventory fraud is notoriously difficult to find and document. So if a client suspects an employee of stealing inventory, it’s important to get a fraud expert involved as quickly as possible. As this article notes, the expert may discover that goods have simply been misplaced. But if fraud is involved, experts look for irregularities in journal entries, vendor invoices and purchase orders, and they work with the company to confirm physical inventory.
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Copyright infringement damages: Doing the math
July / August 2012
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 541
Abstract: Technological leaps and bounds made in the past decade have opened up a virtual playground for copyright infringers. But they may find themselves liable for significant damages down the road. This article talks about the potential liability under the Copyright Act and the Digital Millennium Copyright Act and the different approaches courts have used to compute losses resulting from infringement.
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Calculating lost profits – Do post-breach conditions matter?
July / August 2012
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 984
Abstract: Recently, some breach of contract defendants have argued that poor market conditions subsequent to the alleged breach undermine plaintiffs’ claims for lost profits. This article looks at one lost-profits case in which the court didn’t agree, noting the “traditional rule” that lost profits damages are measured at the time of the breach. A sidebar discusses the distinction the court made in this case between direct lost profits and collateral lost profits.
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Ask the Advisor – How can lease options help me in this slow economy?
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 403
Abstract: Property owners who’ve had trouble locking down sales are offering potential buyers a gradual approach to purchasing their property — lease options. Although a lease option may not be the ideal structure for a sales transaction, it offers some attractive benefits, especially in today’s down market. This article explains how lease options work and their potential benefits and drawbacks.
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Before surrendering property, consider the tax consequences
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 611
Abstract: With the real estate market still sluggish, some property owners are wondering: Would they be better off surrendering their property, rather than continuing to struggle with the loan obligations? Although the answer may seem obvious, discharging debt in this way can have significant tax consequences that should be considered. This article looks at the tax consequences of defaulting on recourse vs. nonrecourse loans.
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Foreclosure investing: It’s not for the fainthearted
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 540
Abstract: Flipping foreclosures may seem like a tempting investment opportunity, but it isn’t for the fainthearted. It often requires a lot of work, research and money — it may take thousands of dollars to repair perhaps years of neglect and to make the property salable. And the property may come with hidden surprises, such as federal tax liens, partial interests, leased land, and other liabilities. This article describes some of the considerations involved and the options available, including bank-owned foreclosed properties and preforeclosures.
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Determining material participation – Tax Court addresses property owner’s “on-call” hours
July / August 2011
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1059
Abstract: Real estate professionals enjoy some tax benefits that aren’t available to other taxpayers, but the professional must meet strict rules to qualify as one. For example, it’s necessary to perform more than 750 hours of real estate–related services. But does being “on-call” qualify for hours worked? This article looks at one case in which the Tax Court disallowed the claims of a couple that they met the requirement because the husband had been on-call to perform activities related to the rental properties. A sidebar explains why they additionally had to pay a penalty. James F. Moss v. Commissioner, 135 T.C. No. 18 (2010).
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Valuing a business with significant real estate assets
July / August 2011
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 529
Abstract: Often, a business’s value is closely linked to the value of its real estate. If that’s the case, a valuation approach that yields separate values for the business and the real estate may produce more accurate results. This article explains the impact of real estate on business value and the methodology involved in separate valuations.