Viewpoint on Value
Showing 129–144 of 382 results
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Finch v. Campbell – Prior business valuations may come back to haunt you
July / August 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 443
Abstract: Two divergent valuation reports were prepared for a law firm: first, in 2012 for a partner’s divorce in 2012; second, in 2014 for a partner dispute. This article explains how the discrepancy between the conclusions was handled by the courts, highlighting the importance of disclosing prior business valuations and reconciling any discrepancies to preserve the admissibility of appraisal evidence. Finch v. Campbell, Mo. App., 2017 WL 6329924, December 12, 2017
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Ready, set, sell – Business valuation experts can provide insight during M&As
July / August 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 578
Abstract: A recent survey reported an active merger and acquisition (M&A) market for small businesses in 2017 — and that momentum has continued in 2018. This article explains how business valuation professionals can help owners prepare for sale and increase the chances of receiving a premium selling price.
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Factoring fraud into the business valuation equation
July / August 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 624
Abstract: Business valuations typically are not designed to unearth fraud. But experts need to be on the lookout for signs of fraud and, when necessary, may expand the scope of the engagement to include forensic accounting services. This article explains how business valuation experts assess fraud risks and adjust their procedures to achieve an accurate conclusion.
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How the new tax law affects divorce settlements and business valuations
July / August 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 928
Abstract: Business valuation experts often help formulate settlement offers in divorce cases. This article highlights provisions of the Tax Cuts and Jobs Act (TCJA) that could affect divorce settlements, including elimination of the deduction for alimony payments, restricted deductions for state and local taxes, expanded uses of Section 529 education plans and reductions in business tax rates. A sidebar defines alimony under the tax rules that will apply through 2018.
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Garbage in, garbage out – Court rejects DCF model based on flawed projections
May / June 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 406
Abstract: The Delaware Court of Chancery deferred to the deal price, not a DCF analysis, in a recent going-private merger of pet specialty retailer PetSmart. Though DCF is often seen as the “gold standard” among valuation tools, this article shows how this method is only as reliable as its underlying assumptions. In re Appraisal of PetSmart, Inc., Delaware Ch., C.A. No. 10782-VCS, May 26, 2017
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How will new accounting rules affect the valuation process?
May / June 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 621
Abstract: Under U.S. Generally Accepted Accounting Principles (GAAP), two new accounting rules on revenue recognition and leases will soon go into effect for public companies. (Private companies get an extra year’s reprieve.) This article explains that these changes could have a major impact on how business valuation professionals evaluate financial statements, apply pricing multiples and estimate a company’s cost of capital.
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Classifying shareholder “loans”
May / June 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 686
Abstract: Valuation professionals must decide whether shareholder loans are bona fide debt obligations, a type of equity transaction or a hybrid of the two. Debt vs. equity classification has relevance when valuing a business, as well as in divorce cases. This article explains why the distinction matters and what factors the IRS considers when deciding what qualifies as a bona fide loan. In re Appraisal of PetSmart, Inc., Delaware Ch., C.A. No. 10782-VCS, May 26, 2017
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3 questions to ask about tax reform when valuing a business
May / June 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 862
Abstract: The Tax Cuts and Jobs Act (TCJA) is the biggest change to the tax law in over 30 years. This article explains why it’s important to consider 1) how tax reform will specifically affect the subject company’s cash flow, 2) how management plans to use any tax savings, and 3) whether management’s projections seem reasonable. A sidebar explains how the new law could also affect a company’s tax base (the amount to which new, lower tax rates will be applied).
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Make business valuation experts a forethought, not an afterthought
March / April 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 421
Abstract: Too often, valuation experts are hired months after a case is filed or just before it goes to trial. This limits the documents and procedures that they can use to perform their analysis. This article reminds attorneys that it’s important to hire experts early in the litigation process and ask for relevant items during discovery.
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Estate of Kollsman – The valuation of art . . . and the art of valuation
March / April 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 594
Abstract: The U.S. Tax Court recently decided a high-profile estate tax case involving the valuation of two Old Master paintings from the 17th century. This article summarizes the details of this case and explains how it has implications that extend to valuations of other types of assets. Estate of Kollsman v. Commissioner, T.C. Memo. 2017-40 (Feb. 22, 2017)
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3 ways valuation experts adjust financial statements
March / April 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 656
Abstract: Business valuation experts can’t always accept the subject company’s financial statements at face value. Sometimes adjustments are needed before an expert can use the financial statements to value a business. This article provides three common types of adjustments and explains when each one might be relevant.
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Avoid common pitfalls when applying the income approach
March / April 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 846
Abstract: Valuing a business using projected earnings is a complex undertaking. This article identifies common pitfalls that novice or untrained valuators tend to make when using the income approach. A sidebar compares and contrasts two methods that fall under the income approach: the capitalization of earnings and discounted cash flow methods.
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Valuing pop-ups
January / February 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: Pop-ups are sweeping the retail, restaurant and entertainment industries. During the recession, many entrepreneurs turned to these temporary, low-rent outlets as a responsible, cost-effective way to grow their operations. This article discusses some key cost considerations and risks to consider when evaluating a pop-up’s business model.
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Patent damages – Federal Circuit clarifies apportionment of lost profits
January / February 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 599
Abstract: In Mentor Graphics Corporation v. EVE-USA, Inc., et. al, the U.S. Court of Appeals for the Federal Circuit provided welcome guidance on apportionment of lost profits in patent infringement cases. This article explains the Panduit test and how the court used it to decide this case. Mentor Graphics Corporation v. EVE-USA, Inc., et al., Nos. 2015-1470, 2015-1554, 2015-1556, U.S. Court of Appeals, Fed. Cir., Mar. 16, 2017 Panduit Corp. v. Stahlin Bros., 575 F.2d 1152 (6th Cir. 1978)
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Common pitfalls when applying the market approach
January / February 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: The market approach is based on a straightforward premise: The value of a business can be derived from the prices others are paying for similar businesses. But, in practice, this valuation technique isn’t nearly so simple. This article identifies several common mistakes that experienced business valuation experts have learned to avoid when applying the market approach.
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Buyer beware – Hire a pro to help with M&A due diligence
January / February 2018
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 869
Abstract: The merger and acquisition (M&A) market is currently hot in many industries. But, before merging with another business, it’s important to do your homework. This article explains how a business valuation professional can help with buy-side due diligence. In addition to evaluating historical and prospective financial statements, an expert can help identify potential hidden liabilities and misrepresentations. A sidebar discusses the recent withdrawal of the proposed regulations on liquidation restrictions when valuing interests for gift and estate taxes.