Viewpoint on Value

Showing 81–96 of 310 results

  • Buy-sell agreements: How to cover all the (valuation) bases

    July / August 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 453

    Abstract: Every business with more than one owner needs a buy-sell agreement to handle voluntary and involuntary ownership transfers. This article explains why it’s important to update the agreement regularly and address all of the valuation issues that may arise.

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  • Parker v. Parker – Trial court uses DLOM to achieve “fairness and equity”

    July / August 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 566

    Abstract: In a recent appraisal rights case, a New Jersey trial court applied a 25% discount for lack of marketability (DLOM) to punish a selling shareholder for his oppressive behavior toward the purchasing shareholder. This article explains what happened and why this controversial decision warrants attention from business owners and attorneys across the country. Richard Parker v. Steven Parker, 2016 N.J. Super, Unpub. Docket No. UNN-C-108-13, December 22, 2016

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  • Family businesses bring valuation challenges

    July / August 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 678

    Abstract: From the Rockefellers to the Kardashians, working together can bring out the best — and worst — in families. This article discusses four key questions valuation experts ask when valuing family businesses. They relate to family members on the payroll and other related-party transactions, management styles and key person discounts.

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  • Let’s make a deal – Customize M&A terms to fit your needs

    July / August 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 874

    Abstract: In mergers and acquisitions, the gap between how much the seller expects to receive and how much the buyer is willing to pay can be bridged by incorporating creative options into the purchase agreement. But it’s important to understand the financial implications. This article discusses the pros and cons of earnouts, installment sales, consulting agreements and noncompetes. A sidebar explains the fundamental differences between asset and stock sales.

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  • Ready, set, sell – 4 ways to add value before selling a business

    May / June 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 433

    Abstract: Business owners typically want to maximize the selling price when it’s time to cash out — and buyers may be willing to pay top dollar if the company is positioned for future growth. This article discusses how valuation experts can help owners understand their strengths and weaknesses, allowing them to boost bargaining strength with potential buyers over the long run.

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  • Deal price doesn’t always represent fair value

    May / June 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 544

    Abstract: In appraisal rights claims, the price paid in a merger may not represent “fair value,” especially when the deal involves related parties. This article summarizes a recent Delaware Chancery Court case, where the judge concluded that a deal price is only as reliable as the process that was used to negotiate the transaction. In the absence of a “competitive and fair auction,” the court will rely on other valuation methods instead. John Douglas Dunmire v. Farmers & Merchants Bancorp of Western Pennsylvania, Inc., 2016 Del. Ch., C.A. No. 10589-CB, Nov. 10, 2016

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  • Beyond beta – Assessing industry risk is a critical part of the valuation process

    May / June 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 703

    Abstract: Valuation professionals typically factor industry risk into the cost of capital, using a “beta” or other industry-specific risk premium. But industry risk isn’t something one factors in once and then forgets about. It’s something the pros consider throughout the valuation process — and its relevance even extends beyond the income approach. This article presents some questions an expert considers when evaluating industry risk.

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  • Finding hidden assets and unreported income

    May / June 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 870

    Abstract: Valuation experts are not responsible for finding fraud unless a client specifically hires them to conduct a forensic investigation. But the business valuation and forensic accounting disciplines often intersect. This article explains the warning signs that controlling shareholders are hiding assets or downplaying cash flow to minimize buyouts of their spouses or minority shareholders and why it’s important to hire a financial expert from the get-go. A sidebar discusses unintentional financial statement omissions — and how they may be unearthed.

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  • What’s the outlook for FLPs?

    March / April 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 441

    Abstract: The viability of family limited partnerships (FLPs) and other family-controlled entities is uncertain. This article discusses recent public feedback to an IRS proposal issued in August 2016 that was intended to curb abusive estate planning practices involving these entities. Despite IRS enthusiasm for the proposal, this article explains how it may not be a priority under the new administration.

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  • Consider the cost approach in M&A

    March / April 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 591

    Abstract: Under the cost approach, a company’s value equals the difference between its combined assets and liabilities. It requires a substantial amount of work to convert a cost-basis balance sheet to the required standard of value. This article explains how buyers and sellers are increasingly using this approach in mergers and acquisitions (M&As) to help compartmentalize the components of value, facilitate discussions about how to structure a deal and prepare for postsale purchase price allocations. This article also covers the basics, including the pros and cons, of this valuation approach.

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  • Business valuation pitfalls – 3 reasons earnings may not equal cash flow

    March / April 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 640

    Abstract: Valuations based solely on oversimplified price-to-earnings multiples won’t pass muster in court — and they should never be the sole method of valuation when pricing a business for sale. This article identifies important considerations that may be missing when the terms “earnings” and “cash flow” are used interchangeably, including capital expenditures, working capital needs and changes in debt.

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  • Discounted cash flow vs. capitalization of earnings – How two methods measure up

    March / April 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 862

    Abstract: Future earnings drive value under the income approach. This article compares and contrasts two methods that fall under this approach: the discounted cash flow and capitalization of earnings methods. A sidebar explains what terminal value is — and how to calculate it.

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  • Using a “yardstick” to measure damages

    January / February 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 417

    Abstract: The yardstick method is a tried-and-true way to measure economic damages in contract breach, patent infringement and other tort claims. This article explains how the method works — and when it might not work as well.

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  • Court increases dissenters’ buyout offer by more than 25%

    January / February 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 593

    Abstract: When computer maker Dell decided to delist in 2013, the deal led to a showdown between management and dissenting shareholders who argued that management’s buyout price was unfair. This article explains why the Delaware Chancery Court decided to base fair value on a discounted cash flow analysis rather than the company’s stock price — and how taxes can have a major impact on value. In Re: Appraisal of Dell Inc., Delaware Ch., C.A. No. 9322-VCL, May 31, 2016

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  • See for yourself – Site visits are a critical part of the valuation process

    January / February 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 670

    Abstract: Financial statements, tax returns and marketing materials tell only part of the story. To get a comprehensive understanding of how a business runs, a valuation expert usually needs to see it — and talk to management — firsthand. This article explains the information that may be unearthed during site visits and the types of questions to expect during management interviews.

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  • 3 reasons why selling price isn’t necessarily a cash-equivalent value

    January / February 2017
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 852

    Abstract: When the value of a business is based on the sales of comparable companies under the guideline merger and acquisition (M&A) method, it’s important to understand the cash-equivalent value of comparables. Creative deal terms can make a deal more (or less) valuable than it appears on the surface. This article lists three common reasons why selling price can be misleading: installment sales, earnouts and contractual agreements with sellers. Deals with such terms may require an adjustment to arrive at a cash-equivalent value. A sidebar demonstrates how deal structure can help bridge a bid-ask spread in an M&A transaction.

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