Expert / Valuation & Litigation Concepts
Showing 49–64 of 145 results
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3 common types of technology fraud
Summer 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: Technological developments have changed for the better how most companies do business. But high tech has its downsides as well. Among the most prominent is the increased risk of fraud perpetrated by external hackers and dishonest employees. This article takes a closer look at three common types of technology fraud: phishy e-mails, phony purchases and corrupted controls.
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Court rejects lost profits calculation for noncompete breach
Summer 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 629
Abstract: Lost profits damages often pose problems because it’s difficult to calculate them with certainty. This is especially true when direct evidence isn’t available to establish the exact loss caused by a breach of contract. Under such circumstances, courts may allow lost profits to be measured on the basis of projected profits. But there are limits — as shown by this article, which cites one recent breach-of-contract case in which the defendants exposed a critical flaw in the plaintiff’s methodology. Arthur J. Gallagher & Co. v. Babcock, No. 11-30452, Dec. 18, 2012 (5th Cir.)
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Look harder – The shadowy world of hidden assets
Summer 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 675
Abstract: Whether intentionally or not, the “lower value” side of divorce, shareholder or other conflicts may obscure or ignore certain assets to bolster its case. To establish a fully rounded value estimate, financial experts have to look harder. They must enter the shadowy world of hidden assets. This article explains the kinds of financial data experts look for and how they detect hidden assets.
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Are management’s expectations reasonable? Appraisers approach internally prepared data cautiously
Summer 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 831
Abstract: Appraisers typically assume no responsibility for the validity and accuracy of management’s financial data. Still, an appraisal is only as reliable as the information on which it’s based. That’s why, before submitting their conclusions, appraisers routinely take a step back and ask: “Are management’s expectations reasonable?” This article looks at the different types of financial statements an appraiser might examine and common pitfalls involving previous years’ operating performances and trends. A sidebar explains the distinctions between forecasts, projections and budgets.
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Zeroing in on fraud with data analysis
Spring 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: With the overwhelming amounts of financial data being churned out by businesses every day, detecting fraud might seem like looking for a needle in a haystack. But this article shows how qualified fraud experts can zero in on fraud, and produce reliable substantiating calculations, by using a number of data analysis techniques.
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Take us to your leader – Appraisers assess company risk with key-person discounts
Spring 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 685
Abstract: The great thing about “key people” is that they’re indispensable. But that’s also the bad thing: Their company would likely start to struggle almost immediately upon their departure or sudden demise. Appraisers recognize this danger and have a detailed way of calculating its effect on business value: the key-person discount. This article explains when it’s applicable — and, on the opposite side of the coin, how certain factors can reduce or eliminate use of this discount.
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Appraisal rights action has broad implications
Spring 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 645
Abstract: This article discusses a court case that provides insight into how to value common stock in a going-private transaction. The primary discrepancy between the parties’ experts was whether to subtract a liquidation preference from the value of equity before allocating value to common shares. The court ruled not only on the dissenting shareholders’ arguments, but also on several other noteworthy valuation matters — in a way that demonstrated its disdain for what it considered subjective, speculative and academically inferior analyses of fair value. In Re: Appraisal of Orchard Enterprises, Inc., WL 2923305, July 18, 2012 (Delaware Court of Chancery).
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Is the FLP safe? Valuation discounts could be on the chopping block
Spring 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 842
Abstract: Family limited partnerships (FLPs), among the more popular estate planning tools, could be on the chopping block as Congress looks for ways to cover the budget deficit. Already, there’s talk of eliminating FLP valuation discounts. This article looks at the effectiveness of these discounts on an FLP’s limited partner interests and explains how to strengthen an FLP against IRS scrutiny. A sidebar discusses one case which upheld an FLP even though formalities hadn’t been concluded before the donor’s death. Estate of Keller, No. 10-41311, Sept. 25, 2012 (5th Cir.)
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Win the battle for objectivity with a rebuttal report
Winter 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 731
Abstract: Along with accuracy, objectivity lies among the primary demands of courts and other parties when it comes to business valuations. But, when an appraisal doesn’t win the approval of a court or shareholder, another appraiser can be brought in to issue a rebuttal report to lend further objectivity to the proceedings. This article shows how rebuttal reports can be useful in a variety of situations.
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Valuing S corporations — Recent divorce case sheds light on tax affecting
Winter 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 721
Abstract: A recently decided divorce case in Massachusetts sheds some interesting light on an issue critical to the valuation of S corporations: tax affecting. Recently, the state’s appellate court addressed this contentious process, which reduces a company’s projected income by deducting hypothetical corporate income taxes. Citation: Bernier v. Bernier, No. 11-P-394, June 29, 2012 (Appeals Court of Mass.); Delaware Open MRI Radiology Assocs., P.A. v. Kessler, C.A., No. 275-N, April 25, 2006 (Del. Court of Chancery)
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E-discovery in the cloud: 3 key issues for attorneys
Winter 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 495
Abstract: Both individuals and businesses are turning to the Internet “cloud” to store their data. Yet use of the cloud raises some thorny issues related to the discovery of electronic data — known more succinctly as “e-discovery.” Cloud data is not always as easily retrievable for discovery purposes as it is for practical purposes. This article discusses three key issues of which attorneys should be aware.
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Adjustments needed? — Common considerations when evaluating financial statements
Winter 2013
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 918
Abstract: Because of their distinctive characteristics, companies account for financial results in different ways — even when conforming to Generally Accepted Accounting Principles (GAAP). As a result, appraisers must decide whether to adjust a company’s financial statements to estimate its fair market value. This article takes a closer look at specific categories of adjustments, including accounting methods and control issues. A sidebar warns against double-counting an interest’s lack of control in regard to interrelated valuation components.
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The latest word on fraud detection
Fall 2012
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 487
Abstract: The Association of Certified Fraud Examiners (ACFE) has released its 2012 Report to the Nations on Occupational Fraud and Abuse. In it, the ACFE estimates that occupational fraud costs the typical organization 5% of its revenue every year. This article discusses the report’s findings, including the most costly types of fraud, and offers suggestions for preventing it.
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Some businesses have risks all their own
Fall 2012
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 684
Abstract: Companies of like size and purpose may possess similarities that are significant for valuation purposes. But, since virtually no published market data exists for the cost of capital or financial returns of privately held companies, an appraiser must use professional judgment in determining company-specific risk. This article looks at the techniques they use.
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Carrying on — Divorce case turns on often overlooked valuation discount
Fall 2012
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 742
Abstract: Many business owners, investors and their attorneys may be familiar with reducing the value of an ownership interest for lack of marketability or lack of control. But these aren’t the only discounts a court may apply. This article looks at a divorce case in which the value of the spouses’ ownership interests in their real estate development companies was in dispute. The wife asserted that specific discounts applied to the value of the companies’ assets shouldn’t be applied again when valuing ownership interests in the companies. The court agreed in principle, but this article explains why she still lost the case. Citation: Barth v. Barth, No. WD73727, April 10, 2012 (Mo. App., Western Dist.)
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Are you for real? — M&A method provides compelling evidence of value
Fall 2012
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 895
Abstract: Many believe there’s no better way to value a business than to compare it to similar, real-life companies involved in mergers and acquisitions (M&As). Doing so is popularly known as the M&A method, which falls under the wider “market approach” to valuation. But market data is far from perfect. The key to overcoming its challenges is thoughtful, methodical implementation. This article discusses six steps appraisers use when applying the M&A method. A sidebar shows when it’s reasonable to reject market data.