Viewpoint on Value

Showing 273–288 of 306 results

  • Shortcuts can be embarrassing — and costly

    September / October 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 561

    Abstract: This brief article warns that novice valuators who sidestep valuation procedures to save money — as well as clients who misrepresent the facts to skew valuation results — may be in for a rude awakening. Courts are becoming increasingly sophisticated in appraisal matters. When a valuator skips steps or fails to understand a company’s operations, the court is likely to discount — or even reject — the expert’s opinion. The article uses the recent case Burr v. Burr to illustrate this point. Case citation: Burr v. Burr (2008 WL 4906271, Mass. App. Nov. 18, 2008).

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  • Avoid M&A pitfalls with targeted due diligence

    September / October 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 765

    Abstract: Anyone buying, selling or merging with a business needs to “kick the tires” before signing on the dotted line. This article explains that a financial professional can conduct due diligence procedures that target high-risk areas for any industry. The article lists seller — and buyer — M&A concerns. It also notes that do-it-yourself M&As can lead to disastrous outcomes and unexpected surprises, pointing out that engaging financial and legal professionals early in the process can save money and stress over the long run.

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  • How valuators assess the rising risk of fraud

    September / October 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 758

    Abstract: The current economic downturn has produced an upswing in incidents of occupational fraud, so it’s imperative for businesses to step up efforts to deter and detect it. 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 of fraud risks based on the subject company’s size, complexity, industry and goals. The article has an accompanying pie graph chart that shows business fraud scheme type and prevalence over the past few years.

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  • What’s the valuation Rx for unhealthy companies?

    July / August 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 435

    Abstract: The recession has taken its toll on many companies. Factors driving companies to the brink of bankruptcy include weak demand, scaled-back corporate budgets and rising commodity prices. This brief article discusses the warning signs of trouble, including late or missing financial records; deferred maintenance, repair and equipment updates; and sales of fixed assets to generate cash. It then points out how valuators can work with management to help distressed companies accurately project value in light of turnaround plans as well as determine liquidation value if needed.

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  • Identify a qualified appraiser with these questions

    July / August 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 782

    Abstract: This article offers advice to help attorneys identify qualified valuation experts and facilitate questioning in deposition and at trial. It lists several points that can help determine whether an appraiser is qualified, including years of experience, percentage of time spent valuing businesses and professional business valuation credentials. The article suggests that obtaining clarification up front can help attorneys get the most from a valuator’s expertise and avoid costly mistakes.

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  • For what it’s worth — The issue of owners’ compensation

    July / August 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1027

    Abstract: One of the biggest expenses for private businesses is owners’ compensation. Value often is based on comparisons between a subject company and guideline companies. If owners are overcompensated compared with similar businesses, the subject company will be undervalued on a controlling basis — and vice versa — unless the valuator adjusts the company’s income stream. This article discusses the issues involved with owners’ compensation, including executive compensation in divorce cases, tax issues, the company’s industry and the general economy.

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  • Electronic discovery: Federal Rules meet the 21st century

    July / August 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1087

    Abstract: Most businesses create and retain information in some type of electronic format, which may include e-mails, spreadsheets, voice mails and accounting records. And all of this electronically stored information (ESI) could be relevant in a lawsuit. The federal judiciary’s Civil Rules Advisory Committee recently amended the Federal Rules of Civil Procedure (FRCP). The new rules, which took effect in December 2006 and govern ESI, provide litigants with a cost-effective, timely way to share data. This article looks at how valuation experts can help attorneys address such issues as potential sources of electronic data, control concerns, preferred formats for electronic documents, and ESI preservation and authentication. A sidebar outlines an 11-point checklist for authenticating electronic records.

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  • Joint appraisal: The power of one

    May / June 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 454

    Abstract: This brief article points out that a joint appraisal can be useful in some situations, including divorce, by facilitating information sharing to streamline the valuation process and minimize divergent opinions. In fact, some jurisdictions mandate the use of a joint appraiser when the marital estate includes a privately held business interest. The article notes the potential pitfalls, but suggests that using a joint appraiser can often save both money and time.

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  • Bridging the gap between public and private firms

    May / June 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 708

    Abstract: Transactions of public company shares can sometimes represent good benchmarks for appraisers valuing private businesses, but many privately held business owners wonder whether it’s even possible to compare small businesses with large, publicly traded corporations. While the two types of businesses differ significantly, experienced valuation professionals understand the differences — and how to account for them with well-thought-out, supportable adjustments. This article explains the distinctions between the two types of companies and how appraisers can use public market data as a resource to value even the smallest private company.

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  • Ready, set, go — How to ensure your valuation goes as planned

    May / June 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 905

    Abstract: Miscommunication and ambiguity early in the valuation process can be frustrating and costly later. This article presents some issues business owners and attorneys should discuss with prospective valuators, including the company’s entity type, size and industry classification code, the appropriate standard of value for the purpose, and what type of report format will best suit their needs. The article notes that it’s best to summarize the assignment’s scope and establish an understanding of the appraiser’s duties and responsibilities in an engagement letter up front.

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  • Can goodwill hold up in a bad economy?

    May / June 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1126

    Abstract: Privately owned companies can’t escape the effects of a slowed economy — for instance, the possibility of impaired values. Goodwill and other indefinite-lived (and long-lived) intangible assets may decline in value. Impaired values might require corrective action to conform with Generally Accepted Accounting Principles (GAAP). This article discusses several recent standards, including Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements, which provide guidelines for impairment testing. The article points out that valuators are often called in to handle these assignments because they are familiar with current standards and can add objective credibility to the process for auditors.

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  • How to evaluate a distressed business

    March / April 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 381

    Abstract: The tumultuous economy has taken its toll on many private businesses. Weaker companies may be liquidating assets to generate cash flow or even filing for bankruptcy, offering opportunities to stronger players. This brief article notes that even in these cases acquisition due diligence is extremely important to help potential buyers realistically assess the distressed business’s value.

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  • Valuing options: Are you up for the challenge?

    March / April 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 668

    Abstract: Employee stock options (ESOs) can be an effective way for companies to attract and retain key employees and are popular among startups and technology firms, which tend to be cash-poor but offer significant growth potential. But accounting for ESOs became more complicated when the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 123(R), which eliminated the intrinsic method of reporting ESOs. This article explains that now companies must use the fair value method, requiring ESO issuers to enlist valuation expertise.

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  • Make no mistakes — the IRS means business

    March / April 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1062

    Abstract: As part of the Pension Protection Act of 2006 (PPA), stiffer penalties await preparers, appraisers and taxpayers who misstate value or sidestep the appraisal process for tax purposes. This article discusses a recent court case that illustrates how overvaluation can prove costly in charitable contribution cases. The article also explains several new rules PPA introduced that revised the thresholds for substantial and gross valuation misstatements, discussing the potential implications for taxpayers. Case citation: Bergquist et al v. Commissioner, 131 T.C. No. 2, July 22, 2008.

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  • Successful succession planning starts today

    March / April 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1134

    Abstract: U.S. companies currently face an economic crisis unparalleled since the Great Depression: rising energy and commodity prices, increasingly stringent lending requirements, volatile stock market values and a general sense of uncertainty. This article points out that, while many businesses are worth less today than under more favorable market conditions, private business owners now can gift a higher percentage of the business to heirs without incurring federal gift taxes or, possibly, estate taxes. The article notes that this is a good time to start, or revisit, succession plans and lists several ways valuators can help.

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  • Less can be more — When calculations offer an alternative to valuations

    January / February 2009
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1035

    Abstract: Calculations can be an efficient, economical alternative to detailed, written valuation reports — but only under the right circumstances. This article explains what a calculation is, identifies the pros and cons, and considers some examples of when a calculation might (or might not) work. The article notes that whether or not a calculation will work depends on the engagement specifics, including the appraisal’s intended use, the interest being valued and the availability of information.

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