Valuation/Lit. sup./Fraud/M&A
Showing 1–16 of 1533 results
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To discount or not to discount? Court rules discounts are inappropriate in forced buyout case
May / June 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 436
Abstract: New Jersey law allows discounts for lack of control and lack of marketability in certain fair value situations. But the propriety of these discounts depends on many factors, including what’s fair and equitable for the circumstances. This article explains why the court decided against applying discounts when valuing the interests of dissociated minority partners in a shopping mall. Robertson v. Hyde Park Mall, No. 13370-13 (N.J. Super. May 19, 2022).
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M&A advisor: How to protect deals from targeted ransomware attacks
May / June 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 538
Abstract: Merger and acquisition volume is expected to rebound to pre-pandemic levels in 2023, according to a recent survey by Citizens Bank. The survey also found that sellers are increasingly seeking guidance from financial professionals to maximize the price. However, there’s a new reason for sellers to seek professional advice — to lower the risk of ransomware attacks. This article explains how these frauds are perpetrated and provides prevention tips.
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Secrets to a successful turnaround strategy
May / June 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 680
Abstract: The COVID-19 pandemic took a toll on many businesses. However, companies that were able to hunker down and save cash during the economic downturn may be in a position to buy competitors that are in financial distress. But acquiring a troubled target can also pose greater risks than buying a financially sound business. This article discusses ways a valuation professional can help reduce such risks.
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Furrer v Siegel & Rouhana, LLC – Lack of buy-sell agreement leads to lengthy litigation
May / June 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 886
Abstract: When small businesses and professional practices operate without an effective operating or buy-sell agreement, costly disputes may arise when the owners part ways. This article summarizes a recent case involving a law firm that drives this point home. A sidebar provides best practices when drafting valuation provisions of buy-sell agreements. Furrer v Siegel & Rouhana, LLC, No. 13370-13 (Md. App. Oct 17, 2022).
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Market approach: Don’t compare apples to oranges
May / June 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 427
Abstract: Under the market approach, the value of a business is derived from comparisons between the subject company and transactions involving similar businesses. This article lists factors to consider when selecting “comparables” and explains how the availability of closely tied comparables can affect an expert’s analysis. Heck v. Commissioner, T.C. Memo. 2002-34.
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M&A due diligence – Buyers should exercise caution when relying on financial statements
May / June 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 626
Abstract: Comprehensive due diligence is an essential part of acquiring a business. But it can be a daunting task — especially for inexperienced buyers. This article explains how financial professionals can help evaluate historical and prospective financial statements, identify potential hidden liabilities and misrepresentations, and prepare independent forecasts and projections. This information is critical when determining the optimal offer price and deal terms.
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Valuing collateral in bankruptcy
May / June 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 663
Abstract: A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes. This article summarizes this complex case, which demonstrates the leeway given to bankruptcy when valuing collateral and the importance of providing reasonable, well-supported valuation analyses and methods. In re Sears Holdings Corporation, 51 F. 4th 53 (2nd Cir. 2022).
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Court rejects valuation based on unsustainable past earnings
May / June 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 844
Abstract: In a recent divorce case, an Arizona court of appeals vacated a trial court’s ruling regarding the value of a 25% business interest owned by the wife. This article summarizes the case. A sidebar highlights another Arizona appellate court decision in which a calculation of value was accepted without a full opinion of value. In re Riddle, No. 1 CA-CV 21-0249 FC (Ariz. App. April 5, 2022). Mikalacki v. Rubezic, No. 1 CA-CV 21-0483 FC (Ariz. App. October 18, 2022).
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Market approach: Don’t compare apples to oranges
May / June 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 427
Abstract: Under the market approach, the value of a business is derived from comparisons between the subject company and transactions involving similar businesses. This article lists factors to consider when selecting “comparables” and explains how the availability of closely tied comparables can affect an expert’s analysis. Heck v. Commissioner, T.C. Memo. 2002-34.
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M&A due diligence – Buyers should exercise caution when relying on financial statements
May / June 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 626
Abstract: Comprehensive due diligence is an essential part of acquiring a business. But it can be a daunting task — especially for inexperienced buyers. This article explains how financial professionals can help evaluate historical and prospective financial statements, identify potential hidden liabilities and misrepresentations, and prepare independent forecasts and projections. This information is critical when determining the optimal offer price and deal terms.
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Valuing collateral in bankruptcy
May / June 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 663
Abstract: A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes. This article summarizes this complex case, which demonstrates the leeway given to bankruptcy when valuing collateral and the importance of providing reasonable, well-supported valuation analyses and methods. In re Sears Holdings Corporation, 51 F. 4th 53 (2nd Cir. 2022).
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Court rejects valuation based on unsustainable past earnings
May / June 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 844
Abstract: In a recent divorce case, an Arizona court of appeals vacated a trial court’s ruling regarding the value of a 25% business interest owned by the wife. This article summarizes the case. A sidebar highlights another Arizona appellate court decision in which a calculation of value was accepted without a full opinion of value. In re Riddle, No. 1 CA-CV 21-0249 FC (Ariz. App. April 5, 2022). Mikalacki v. Rubezic, No. 1 CA-CV 21-0483 FC (Ariz. App. October 18, 2022).
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Proposed FRE amendments may affect your expert witnesses
March / April 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 407
Abstract: Proposed amendments to the Federal Rules of Evidence (FRE), expected to take effect in late 2023, may affect the admissibility of expert testimony. This article discusses the two key changes the amendments, if approved by the U.S. Supreme Court, would make and the impact they would have on the use of financial experts in federal cases.
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How to estimate lost profits for a start-up business
March / April 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 594
Abstract: The usual methods of calculating lost profits may fall short when a start-up is involved. This article explains alternative methods of assessing damages that experts use for companies without an established track record.
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Redleaf v. Commissioner – Cash payments are property settlement, not deductible alimony
March / April 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 613
Abstract: Pursuant to a marital termination agreement from 2008, the husband in Redleaf v. Commissioner deducted $51 million in deferred cash payments to his ex-wife. The U.S. Court of Appeals for the Eighth Circuit Court affirmed that the payments weren’t deductible as alimony under the tax law that was in effect at the time the agreement was executed. This article summarizes the case and highlights the importance of considering tax issues when executing a divorce or settlement agreement. Redleaf v. Commissioner, 43 F.4th 825 (8th Cir. 2022).
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DLOM dilemma – Defendants’ bad-faith behavior precluded marketability discount
March / April 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 898
Abstract: In Sipko v. Koger, Inc., the New Jersey Supreme Court found that a discount for lack of marketability (DLOM) was inappropriate, noting the “defendants’ bad-faith behavior throughout this 15-year litigation.” This article summarizes this family business drama. A sidebar discusses the issue of applying DLOMs to controlling interests in private businesses to reflect the time and effort needed to convert them to cash. Sipko v. Koger, Inc., 276 A.3d 160 (N.J. Sup. Ct. 2022).