Viewpoint on Value

Showing 33–48 of 306 results

  • Beyond Georgia-Pacific – How market data can be used to calculate reasonable royalty damages

    May / June 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 462

    Abstract: In intellectual property infringement cases, business valuation experts often use the Georgia-Pacific model to determine reasonable royalty rates. This article lists the 15 factors that are considered under this model, and describes a market-based alternative that’s gaining momentum. Georgia-Pacific Corp. v. United States Plywood Corp., 318 F.Supp. 1116, S.D.N.Y., 1970 StoneEagle Services, Inc. v. Pay-Plus Solutions, Inc., No. 8:13-cv-2240-T-33MAP, M.D. Fla., 2015

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  • Valuing distressed companies

    May / June 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 575

    Abstract: Struggling businesses face different financial challenges than healthy ones do. This article discusses how business valuation experts factor these differences into their estimations when valuing troubled companies.

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  • Close-up on goodwill in divorce cases

    May / June 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 672

    Abstract: When divorcing spouses own a private business interest, it complicates the settlement process. In general, the business needs to be valued and then included — either entirely or partially, depending on state law and legal precedent — in the marital estate. For some businesses, goodwill can provide significant value. This article summarizes different ways goodwill may be handled in divorce cases across the United States.

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  • West Plains, LLC v. Retzlaff Grain Co. – Loss-of-value damages upheld despite survival of business

    May / June 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 855

    Abstract: In commercial tort claims, courts must decide how much damage the plaintiff suffered from the defendant’s alleged wrongdoing. This article summarizes a recent Eighth U.S. Circuit Court of Appeals case that upheld a jury’s damages award based on lost market value, even though the business wasn’t completely destroyed. A sidebar highlights the benefits of hiring a separate financial expert to conduct a formal appraisal review. West Plains, LLC v. Retzlaff Grain Co., 870 F.3d 774, 8th Cir., August 30, 2017

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  • Warning: Expert admissibility standards may vary

    March / April 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 422

    Abstract: In federal court, the admissibility of expert testimony is governed by the strict Daubert standard. Courts in most states have also adopted the Daubert standard, but others may apply the less stringent Frye standard. This article compares these standards, and explains why it’s important to look beyond state law to determine which standard applies in a particular case. Daubert v. Merrell Dow Pharmaceuticals, Inc., 113 U.S. 2786, 1993 Frye v. United States, D.C. Cir., 293 F. 1013, 1923 Kumho Tire Co. v. Carmichael, 526 U.S. 137, 1999 Delisle v. Crane, No. SC16-2182, October 15, 2018

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  • How to calculate terminal value

    March / April 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 533

    Abstract: When using the discounted cash flow method to value a business, a large chunk of the value is contained in the “terminal” value. This article discusses ways business valuation experts estimate terminal value and the importance of using reasonable assumptions about long-term growth.

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  • Buyer beware – Hire a business valuation pro to help with due diligence

    March / April 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 709

    Abstract: The U.S. merger and acquisition (M&A) market hit a record high in 2018. That momentum is expected to continue in 2019. But, before you get swept away in the hype, it’s important to do your homework. This article explains the importance of conducting thorough due diligence and preparing detailed financial projections before you close on a deal.

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  • Verition Partners Master Fund Ltd. v. Aruba Networks, Inc. – Court turns to stock price as best evidence of fair value

    March / April 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 853

    Abstract: In recent years, Delaware’s Supreme Court has shown its preference, under the right circumstances, for market-based indicators of value in statutory appraisal cases. This article summarizes a recent dissenting shareholders case in which the court concluded that the best evidence of fair value was the target company’s unaffected stock price. Conversely, a sidebar highlights another case in which the court relied on an expert’s discounted cash flow analysis in the absence of reliable market-based indicators of value. Verition Partners Master Fund Ltd. v. Aruba Networks, Inc., Delaware Ch., C.A. No. 11448-VCL, February 15, 2018 Dell, Inc. v. Magnetar Global Event Driven Master Fund Ltd, Del., 177 A.3d 1, 2017 Blueblade Capital Opportunities LLC v. Norcraft Companies, Inc., Delaware Ch., C.A. No. 11184-VCS, July 27, 2018

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  • A picture’s worth a thousand words – Why valuation experts use visual aids

    January / February 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 415

    Abstract: Valuation experts often use visual aids, such as graphs and charts, to capture the attention of a judge or jury and drive home key points. This article highlights the benefits of using visual aids during trial and deposition, and provides examples of situations in which visual aids might be used to reinforce an expert’s conclusions.

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  • Market approach – How to pick a relevant pricing multiple

    January / February 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 579

    Abstract: Courts tend to prefer the market approach in business valuation, because it’s based on real-world “comparable” transactions. This article identifies different pricing multiples that may be used in the market approach and explains when each one tends to work best. Statistical tools can help business valuation experts evaluate which multiples are most relevant based on market evidence.

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  • Dissenting shareholders: What’s the fair value of the interest?

    January / February 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 654

    Abstract: The Tennessee Supreme Court recently turned to case law from Delaware to decide on the appropriate method to value shares in appraisal rights actions. This article explains how the Delaware Block method works and why the state supreme court decided to allow “any technique or method that’s generally acceptable in the financial community and admissible in court.” Athlon Sports Communications v. Stephen Duggan, et al., No. M2015-02222-SC-R11-CV, June 8, 2018 Weinberger v. UOP, Inc., 457 A.2d 701, 712-13, Del. 1983

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  • Differentiating active vs. passive appreciation in divorce

    January / February 2019
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 858

    Abstract: The laws in most states make a distinction between marital and separate property for purposes of marital dissolution. In cases where property increases in value during the marriage, experts may be hired to determine whether that appreciation is passive or active. This article explains the difference between these terms and why it matters when divvying up a marital estate in divorce. A sidebar highlights the need to take a holistic approach when differentiating between the active and passive appreciation when valuing a business. Bair v. Bair, 214 So. 3d 750 (Fla. 2nd DCA 2017)

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  • Asetek Danmark A/S v. CMI USA, Inc. – Patent infringement damages require a thorough analysis

    November / December 2018
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 455

    Abstract: Federal patent law allows courts to award damages that are “adequate to compensate for the infringement but in no event less than a reasonable royalty” for an infringer’s use of the patented invention. This article summarizes a recent patent infringement case in which the Federal Circuit upheld reasonable royalty damages based largely on the plaintiff’s profit under a licensing agreement with a third party. Asetek Danmark A/S v. CMI USA, Inc., 842 F.3d 1350, 2016-1026, 2016-1183, Dec. 6, 2016

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  • How tax law changes may affect the cost of capital

    November / December 2018
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 594

    Abstract: The costs of debt and equity capital are key components of business value under the income approach. But traditional methods of calculating the cost of debt, the cost of equity and the relative percentages of debt vs. equity financing may not be relevant under the Tax Cuts and Jobs Act (TCJA). This article explains what the weighted average cost of capital (WACC) is, how it’s used in the income approach and what aspects of the income approach could change for valuations with effective dates after the TCJA was enacted.

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  • Vetting IP – In M&A, it’s critical to evaluate intellectual property

    November / December 2018
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 656

    Abstract: From patents to licenses, intellectual property (IP) assets often represent a significant portion of the purchase price in mergers and acquisitions. This article describes how business valuation professionals can help ensure IP assets are valued correctly and that the rights are transferable to a new owner.

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  • 3 ways to evaluate capital budgeting decisions

    November / December 2018
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 836

    Abstract: Many business owners plan to reinvest their tax savings from the Tax Cuts and Jobs Act (TCJA) into their operations. Strategic investments shouldn’t be made solely on gut instinct, however. This article explains the importance of projecting cash flows and using them to calculate the accounting payback period, net present value (NPV) and internal rate of return (IRR) to evaluate a project’s potential. A sidebar provides a reminder of TCJA provisions that are expected to lower business taxes.

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