Valuation Concepts
Showing 17–29 of 29 results
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The perplexing puzzle of economic damage claims
Fall 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 701
Abstract: Calculating economic damages is similar to assembling a complex puzzle. Doing so requires gathering pieces of economic information and then fitting them together to make the injured party “whole” again. This article looks at how appraisers manage this challenging process. (Updated 2/7/12)
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Taxpayer scores eleventh-hour victory in capital gains case
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 629
Abstract: Although courts are increasingly permitting built-in capital gains discounts for C corporations, exactly how to quantify such a discount remains unclear. In this issue’s “For what it’s worth: Valuation in the courts,” we look at a recent case that sheds some light on this ongoing issue and provides a succinct review of relevant case law. Citations: Estate of Frazier Jelke III v. Commissioner, U.S. Court of Appeals for the 11th Circuit, No. 05-15549, November 15, 2007. Estate of Dunn, 301 F.3d. 339, 2002.
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Today’s appraisers bring various credentials to the table
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 783
Abstract: Many business owners and attorneys often find themselves overwhelmed by the many acronym-heavy credentials associated with the ever-growing pool of qualified appraisers. Understanding these credentials, and the standards that create them, can help business owners and attorneys not only choose the right appraiser, but also better understand the final work product produced. This article describes some of the more common valuation credentials.
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No business operates in a vacuum – How current and prospective economic conditions affect value
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1095
Abstract: Try as it might, no management team can control every factor that affects a company’s success or failure. Outside forces, such as government regulation, global competition, interest rates, labor supply and tax policy, may all influence the organization’s estimated value. In other words, no business operates in a vacuum. This article discusses an appraiser’s role in this context: to size up current and prospective economic conditions and synthesize them into a meaningful value estimate. (Updated 11/14/12)
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Taking a red pen to financial statements – Adjustments a must for many private business valuations
Summer 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 715
Abstract: Financial statements are an important source of valuation data, but they tell only part of the story. An accurate appraisal hinges on a comprehensive understanding of the subject company’s relative performance and earnings power. This article explains how, to clarify matters, an appraiser often makes various financial statement modifications, including nonrecurring, normalizing, control and balance sheet adjustments. (Updated 2/7/12)
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For what it’s worth: Valuation in the courts – S corporation dispute highlights valuation challenges
Spring 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 564
Abstract: This issue’s “For what it’s worth: Valuation in the courts” looks at a recent divorce case that demonstrates the significant impact that “tax-affecting” an S corporation can have on a business appraisal. The case also shows that court decisions can sometimes have bearing on valuation issues debated in other venues. Citations: Bernier v. Bernier (2007 Mass. LEXIS 598, May 7, 2007). Gross v. Commissioner of Internal Revenue (272 F. 3d 333, 6th Cir. 2007, cert. denied, 537 U.S. 827, 2002). Delaware Open MRI Radiology Associates v. Kessler (898 A 2d 290, 327, Del. Ct. Ch. 2006).
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Distinctive challenges: Appraising professional practices
Spring 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 631
Abstract: Professional practices — such as architecture, accounting, medical and law firms — present distinctive challenges for appraisers. Despite the divergent nature of their operations, however, professional practices do share a few common valuation denominators. This article looks at those denominators and how appraisers apply them. (Updated 11/14/12)
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The fair value remedy – Important considerations in minority shareholder disputes
Spring 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 758
Abstract: Minority shareholders who feel mistreated in a major business transaction can file suit against controlling owners. For instance, a minority shareholder might object to a stock-for-stock or “squeeze-out” merger. Or, if a proposed transaction will reduce a minority shareholder’s compensation, divert corporate assets — or both — he or she may file an oppression suit. This article explains how, in such cases, courts will often apply a fair value remedy. (Updated 2/7/12)
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Mergers and acquisitions – Appraisers can play critical role in private business sales
Spring 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1061
Abstract: Selling a private company for top dollar requires a team effort. Few private business owners have previous merger and acquisition (M&A) experience, making it essential that they seek input from outside professionals. In addition to attorneys, accountants and business brokers, appraisers can play a critical role in the sale of a private business. This article explains how. (Updated 2/7/12)
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For what it’s worth: Valuation in the courts – Cherry-picking trumps splitting the difference
Winter 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 579
Abstract: In this issue’s “For what it’s worth: Valuation in the courts,” we discuss divorcing couples and their unresolved valuation differences. To wit, disputing parties cannot expect judges to simply split the difference and average opposing expert opinions. Rather, courts will more than likely take in the science underlying each business appraisal and then “cherry pick” the most sensible portions of each expert’s analysis. A recent Florida case demonstrates just such a scenario. Citations: Augoshe v. Lehman, (2007 Fla. App., No. 2D05-2034, August 10, 2007); Solomon v. Solomon, (861 So. 2d 1218, 1221, Fla. 2d DCA 2003).
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IRS cracking down on inaccurate appraisals
Winter 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 756
Abstract: Although the Pension Protection Act of 2006 (PPA) may seem like old news, its repercussions are still being felt in the valuation community. Namely, the IRS is using provisions of the act to rein in abusive appraisal practices. This article tells how and why taxpayers and appraisers alike may be subject to sanctions for valuation misstatements related to noncash charitable contributions.
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Discounts for lack of marketability – 4 FAQs on these critical valuation adjustments
Winter 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 766
Abstract: One of the most significant — and subjective — valuation adjustments is the discount for lack of marketability (DLOM). This article answers four frequently asked questions regarding this critical valuation adjustment. (Updated 11/14/12)
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Goodbye averages, hello analyses – Supporting FLP discounts isn’t getting any easier
Winter 2008
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1164
Abstract: A difficult task to begin with, supporting discounts for family limited partnerships (FLPs) isn’t getting any easier. More specifically, judges are looking beyond the magnitude of discounts to examine precisely how appraisers are arriving at their opinions. This article provides some legal cases in point and goes on to explain what makes for a well-supported FLP discount. Citations: Peracchio v. Commissioner, T.C. Memo 2003-280. Berg v. Commissioner, T.C. Memo 1991-279.