Valuation/Lit. sup./Fraud/M&A
Showing 1–16 of 1569 results
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Beware of the corporate opportunity doctrine
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 428
Abstract: Under the corporate opportunity doctrine, an agent of a corporation can’t divert or exploit for the agent’s own benefit an opportunity that’s the principal’s opportunity. This article summarizes a recent case in which a New York trial court found the majority owners of a successful sports bar misappropriated a “corporate opportunity” when they used lease buyout proceeds to relocate the bar and start a new corporation to run it. O’Mahony v. Whiston, No. 652621/2014. (N.Y. Cty., Feb. 15, 2023).
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How to reduce frauds from C-suite executives
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 562
Abstract: The largest fraud losses typically come from people in positions with the highest authority — owners and executives. A recent study by the Association of Certified Fraud Examiners reports that the median loss from these fraud schemes was $337,000, compared to $50,000 for rank-and-file workers. This article discusses ways to reduce executive-level fraud risks by focusing on the three critical elements of the fraud triangle: motive, opportunity and rationalization.
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FAQs about valuing human capital
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 682
Abstract: The term “human capital” refers to a trained and assembled group of workers who know how to operate equipment, follow the company’s policies and procedures, innovate to build new products and services, and work together as a team to achieve the company’s strategic goals. Human capital is often an unreported — but valuable — asset that can be difficult to appraise. This article discusses the types of human capital assets, how to value them and when a valuation might be needed.
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Estate of MacElhenny v. Commissioner – Claims against decedent didn’t reduce the estate’s value
November / December 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 862
Abstract: The U.S. Tax Court recently ruled that an estate couldn’t deduct the value of two consent judgments entered against the decedent. This article explains why the U.S. Tax Court sided with the IRS, ruling that the judgments didn’t qualify as “bona fide” claims against the estate. A sidebar highlights the Tax Court’s rejection of the estate’s argument that entry by a state court makes judgments bona fide claims. Estate of MacElhenny v. Commissioner, Nos. 12981-19, 12982-19 (Tax Ct. March 15, 2023).
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Are PPP funds includable in business income for valuation purposes?
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 431
Abstract: The Paycheck Protection Program (PPP) was enacted during the pandemic to help struggling businesses cover operating costs incurred while they were temporarily forced to shut down. This article summarizes a recent divorce case in which the Vermont Supreme Court upheld a decision allowing PPP funds to be included in income for business valuation purposes. Griggs v. Griggs, No. 22-AP-186 (Vt. Sup. Ct. March 10, 2023).
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How financial experts can help in bankruptcy
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 548
Abstract: There’s been a wave of business bankruptcies in 2023. Companies facing financial distress may find relief by assembling a team of experienced advisors to mitigate losses and, if possible, take corrective measures. This article highlights the role a financial professional can play in reorganizations, sales and liquidations.
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11th Circuit: Plaintiff entitled to damages for future lost profits
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 654
Abstract: The U.S. Court of Appeals for the 11th Circuit in WL Alliance, LLC v. Precision Testing Group, Inc. upheld a jury award of $3.3 million, including $1.6 million in damages for lost future profits. The article summarizes why the appellate court upheld the district court’s decision to reject the defendants’ argument that lost future profits weren’t recoverable because they were too speculative. WL Alliance, LLC v. Precision Testing Group, Inc., No. 22-10780 (U.S. Court of Appeals, 11th Cir., Dec. 21, 2022).
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ES NPA Holding, LLC v. Commissioner – Tax Court finds arm’s-length sale was best evidence of value
November / December 2023
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 905
Abstract: A U.S. Tax Court case recently addressed the issue of whether a taxpayer received a capital interest or a profits interest in a partnership for services provided to the partnership. Capital interests are immediately taxable, while profits interests generally are tax-deferred. This article summarizes this case, which concluded that the characterization of the taxpayer’s interest depended on the partnership’s fair market value. A sidebar provides ideas to bridge the gap between the seller’s asking price and the buyer’s offer price. ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55.
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Are PPP funds includable in business income for valuation purposes?
November / December 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 431
Abstract: The Paycheck Protection Program (PPP) was enacted during the pandemic to help struggling businesses cover operating costs incurred while they were temporarily forced to shut down. This article summarizes a recent divorce case in which the Vermont Supreme Court upheld a decision allowing PPP funds to be included in income for business valuation purposes. Griggs v. Griggs, No. 22-AP-186 (Vt. Sup. Ct. March 10, 2023).
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How financial experts can help in bankruptcy
November / December 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 548
Abstract: There’s been a wave of business bankruptcies in 2023. Companies facing financial distress may find relief by assembling a team of experienced advisors to mitigate losses and, if possible, take corrective measures. This article highlights the role a financial professional can play in reorganizations, sales and liquidations.
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11th Circuit: Plaintiff entitled to damages for future lost profits
November / December 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 654
Abstract: The U.S. Court of Appeals for the 11th Circuit in WL Alliance, LLC v. Precision Testing Group, Inc. upheld a jury award of $3.3 million, including $1.6 million in damages for lost future profits. The article summarizes why the appellate court upheld the district court’s decision to reject the defendants’ argument that lost future profits weren’t recoverable because they were too speculative. WL Alliance, LLC v. Precision Testing Group, Inc., No. 22-10780 (U.S. Court of Appeals, 11th Cir., Dec. 21, 2022).
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ES NPA Holding, LLC v. Commissioner – Tax Court finds arm’s-length sale was best evidence of value
November / December 2023
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 905
Abstract: A U.S. Tax Court case recently addressed the issue of whether a taxpayer received a capital interest or a profits interest in a partnership for services provided to the partnership. Capital interests are immediately taxable, while profits interests generally are tax-deferred. This article summarizes this case, which concluded that the characterization of the taxpayer’s interest depended on the partnership’s fair market value. A sidebar provides ideas to bridge the gap between the seller’s asking price and the buyer’s offer price. ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55.
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Apportionment: Does your damages expert understand this legal concept?
September / October 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 451
Abstract: In Niazi Licensing, the U.S. Court of Appeals for the Federal Circuit excluded the testimony of a damages expert on the proper royalty rate for an infringed method patent. This article summarizes the case and explains where the expert went wrong. Niazi Licensing Corp. v. St. Jude Medical S.C., Inc., No. 21-1864 (Fed. Cir. April 11, 2022).
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Due diligence is critical when buying a distressed business
September / October 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 563
Abstract: In the aftermath of the COVID-19 pandemic and the ensuing market volatility, some businesses are struggling to survive. This article explains that a distressed business may be a prime target for a takeover — but due diligence is critical to avoid overpaying.
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Ransomware attacks on the rise
September / October 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 619
Abstract: Cyber insurance providers — including Marsh and Resilience — are reporting upticks in ransomware claims in 2023. This article highlights this trend and provides best practices for preventing and responding to these attacks.
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Estate of Cecil v. Commissioner – Tax Court permits tax affecting of S corp earnings
September / October 2023
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 857
Abstract: The debate about tax affecting when valuing pass-through entities for federal gift and estate tax purposes continues. “Tax affecting” refers to the practice of reducing a business’s projected future earnings for hypothetical corporate income taxes. This article explains why the U.S. Tax Court reluctantly allowed tax affecting in a recent case. Estate of Cecil v. Commissioner, T.C. Memo. 2023-24 (Tax Ct. Feb. 28, 2023). Gross v. Commissioner, T.C. Memo. 1999-254, aff’d, 272 F.3d 333 (6th Cir. 2001).