Viewpoint on Value
Showing 113–128 of 382 results
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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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Trick or treat – Could a shareholders’ agreement come back to haunt (or help) you?
September / October 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 463
Abstract: Shareholders’ agreements often include buyout provisions, governing transfers of stock if an owner leaves the business. These provisions may, for example, prescribe a fixed price, valuation discounts for lack of control or marketability, and procedures for valuing the business during a shareholder buyout. This article summarizes a divorce case where a Louisiana appellate court upheld a trial court decision to partition assets based solely on the fixed value prescribed in the shareholders’ agreement. Baumbouree v. Baumbouree, La. App. 3 Cir., 202 So.3d 1077, No. 15–1053, July 13, 2016
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4 key ways public and private companies differ
September / October 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 566
Abstract: Public company data often serves as the basis for valuing privately held businesses. This article highlights four important differences between these types of businesses that valuation experts need to consider: size, level of sophistication, access to capital and internal controls.
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Valuing S corporations – Tax law introduces qualified business income deduction
September / October 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 686
Abstract: The Tax Cuts and Jobs Act (TCJA) introduces a new twist in the tax-affecting debate for S corporations — a tax deduction equal to as much as 20% of qualified business income (QBI) that attempts to level the tax playing field between C corporations and pass-through entities, including S corporations. This article explains the rules and limitations for taking the QBI deduction — and why it’s important for business valuation experts to factor in these rules on a case-by-case basis.
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Benchmarking performance in business valuation
September / October 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 841
Abstract: One way business valuation experts gauge company-specific risk is to benchmark financial performance over time and against competitors. This article explains critical benchmarks that experts monitor: profitability, liquidity, asset management and leverage. A sidebar discusses the importance of understanding differences in accounting methods when analyzing financial results.