Advocate's Edge / Litigation Support
Showing 33–48 of 384 results
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Don’t let fraud disrupt your M&A deal
July / August 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: Due diligence is key when buying or merging with a business, especially in today’s volatile marketplace. This article discusses ways a forensic accountant can help a buyer vet the seller’s financial statements, projections and representations for errors, exaggerations — and even fraud.
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Appellate court overturns ruling based on “incompetent” valuation
July / August 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 561
Abstract: Weak valuation testimony may sometimes satisfy a jury. But it can come back to haunt clients on appeal. This article explains how a government agency learned that lesson the hard way in a recent Pennsylvania eminent domain case. State Route 00700, Section 21H v. Bentleyville Garden Inn, Inc., No. S-21-133 (Pa. Commonwealth Oct. 1, 2021).
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Factors to consider when selecting guideline companies
July / August 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 635
Abstract: When valuing businesses, experts often rely on the guideline transaction method. This technique derives market multiples from the market prices of controlling interests in companies that are engaged in the same or similar lines of business as the subject company. This article explains why careful selection of guideline companies and pricing multiples is critical to avoiding erroneous conclusions under this method.
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Bohac v. Benes Service Co. – Is the asset-based approach relevant for going concerns?
July / August 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 836
Abstract: The appropriate technique for valuing a business depends on a variety of factors, including the type of business, its plans for the future and the valuation’s purpose. This article summarizes a recent Nebraska Supreme Court ruling that called for an asset-based (or cost) approach to value a business that’s a viable going concern. A sidebar explains how the standard of value in dissenting shareholder cases usually differs from the IRS’s definition of fair market value. Bohac v. Benes Service Co., No. S-21-133 (Neb. Jan. 14, 2022).
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How business valuation pros can help when M&A talks stall
May / June 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 443
Abstract: A business valuation professional can help M&A parties work through their differences and eventually agree on a price. This article explains four ways that a valuator can help parties crunch the numbers and, ultimately, bridge the gap between the seller’s asking price and the buyer’s offer.
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Estate of Collins v. Tabs Motors of Valley Stream Corp. – Fixed-value provisions in buy-sell agreements need regular updates
May / June 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 535
Abstract: Buy-sell agreements are a critical tool for closely held businesses, and their valuation provisions play a significant role in how the agreements will play out when triggered. This article summarizes a recent New York case that teaches a valuable lesson about the importance of updating fixed-value provisions of buy-sell agreements — or choosing more prudent, alternate valuation methods. Estate of Collins v. Tabs Motors of Valley Stream Corp., No. 160529/2019 (N.Y. Sup. Ct. Dec. 15, 2021).
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Revealing and exorcising ghosts from the payroll record
May / June 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 630
Abstract: A phantom employee is someone who’s on a company’s payroll but doesn’t actually work for the company. This article explains the warning signs and tips to help businesses remove these ghosts from their books.
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Goodwill in divorce: Personal or enterprise?
May / June 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 898
Abstract: The handling of goodwill in divorce cases varies depending on the jurisdiction and case facts. This article summarizes a recent Tennessee Court of Appeals decision that provides an overview of the factors used to differentiate between personal and enterprise goodwill. A sidebar shows that it’s important to check your math when allocating nonbusiness marital assets. Cela v. Cela, No. 019-01861-COA-R3-C (Tenn. App. July 30, 2021).
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Are “calculations” of value admissible in court?
March / April 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 440
Abstract: The development and reporting requirements for a calculation are generally far less stringent than those that apply to a valuation. However, budget-conscious clients may request a calculation rather than a full-blown valuation. This article summarizes a recent Arizona divorce case, which demonstrates that, while calculation reports aren’t necessarily inadmissible, caution still is warranted. Larchick v. Pollock, No. 19-0649 (Ariz. App. Sept. 2, 2021).
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Yaquinto v. Thompson St. Capital Partners – Bankruptcy trustee falls short on transfer challenge
March / April 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 625
Abstract: In a recent fraudulent transfer case, flaws in the financial expert’s testimony proved to be a bankruptcy trustee’s Achilles’ heel. The trustee showed that the debtors transferred a property interest without receiving reasonably equivalent value. However, this article summarizes why the bankruptcy court concluded that the trustee didn’t meet his burden of proving the transfer was fraudulent. Yaquinto v. Thompson St. Capital Partners (In re Stone Panels, Inc.), No. 16-32856 (Bankr. N.D. Tex. Sept. 27, 2021).
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Using ESOPs to transfer ownership
March / April 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 838
Abstract: An employee stock ownership plan (ESOP) can facilitate the transfer of a business to the owner’s children or employees over a period of years in a tax-advantaged way. This article discusses how ESOPs differ from management buyouts, explains why a business valuation is essential and describes the potential costs. A sidebar explains why a federal district court recently rejected the government’s valuation of an engineering firm’s ESOP. Walsh v. Bowers, No. 18-00155 (D. Hawaii Sept.17, 2021).
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How to combat supply chain fraud
March / April 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Supply chains in many industries have been under unprecedented stress over the last two years. When stress runs high, internal controls may fail to adapt to operational changes, leading to increased opportunities for fraud. This article explains how a strong system of internal controls, including routine risk assessments, can help companies fortify their defenses.
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In re Kinser Group LLC – Incorrect assumptions undermine hotel appraisal
January / February 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 439
Abstract: In this federal bankruptcy case, the court found two hotel appraisals to be fundamentally flawed. This article summarizes the reasons, including the appraiser’s failure to review the reorganization plan and his incorrect assumption that the hotels would be sold rather than retained and operated. In re Kinser Group LLC, No. 2:20-bk-09355-DPC (Bankr. Ct. Ariz. Dec. 18, 2020).
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How valuation experts adjust their analyses for fraud
January / February 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 625
Abstract: Forensic accounting investigations aren’t within the typical scope of a business valuation. But fraud can drain a company of assets and adversely impact its value. This article explains how business valuation experts factor fraud risks into their analyses.
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To discount or not to discount? Court rules no DLOM for 100% interest in dental practice
January / February 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 852
Abstract: The application of valuation discounts can be a major source of contention in a legal action. This article summarizes a recent ruling by the Indiana Court of Appeals that upheld a lower court’s rejection of a discount for lack of marketability on a controlling interest in a divorce action. Conversely, a sidebar highlights a shareholder buyout case in which the Missouri Supreme Court allowed discounts for lack of marketability and control based on the unique facts of the case. Kakollu v. Vadlamudi, No. 21A-DC-96 (Ind. App. July 26, 2021). Robinson v. Langenbach, No. SC97940 (Mo. May 12, 2020).
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3 fraud prevention tips for small businesses
January / February 2022
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 576
Abstract: Fraud prevention efforts reduce opportunities for employees to steal assets from their employers and for managers to intentionally misstate their companies’ financial results. Preventive measures don’t necessarily need to be expensive to be effective. This article explains three cost-effective ways small business owners can help reduce their fraud risks.