Valuation/Lit. sup./Fraud/M&A
Showing 1329–1344 of 1569 results
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Prepare for the worst with a MAC
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 576
Abstract: In a business acquisition, a material adverse change (MAC) clause can provide a buyer with an escape hatch if an extraordinary event adversely affects the seller’s projected performance. Although MACs don’t guarantee that exits from bad deals will be without penalties, they can be a useful tool in desperate situations. And MACs can serve as a negotiating tool; the buyer and seller can discuss what events constitute an adverse change as a way to allocate risk between both parties.
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Tough call: Deciding to write off goodwill
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 424
Abstract: During economic downturns, a company may face some major goodwill impairment. For those thinking about selling, such impairment could affect an M&A deal’s value. Companies in this position must decide whether to write off goodwill — which has both pros and cons. Companies that write off goodwill usually reason that it’s a better alternative to having to adjust their company’s overall book value downward. But prospective buyers may oppose it for potential regulatory or legal issues. More often, buyers prefer that their target write off goodwill before negotiating a sale price.
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Good financial projections can help seal your deal
Year End 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 956
Abstract: Accurately projecting future earnings for a prospective buyer is critical if a business seller hopes to close an M&A deal successfully. This article discusses three of the most common financial projections used, and lists several data points that might bear special scrutiny. While no forecast will be perfect, an enterprise resource projection system can improve accuracy, and communications with the buyer can help keep the deal alive. A sidebar shows how financial projections can also help a company evaluate its health and reverse unwanted trends.
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Punitive damages: The financial expert’s role
November / December 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 484
Abstract: Enormous punitive damage awards may be a thing of the past, but they can still make up a significant portion of a plaintiff’s recovery. An appropriate award depends on the defendant’s financial condition. Financial experts can assess this by analyzing financial statements and explaining to the judge or jury how factors other than net worth — such as cash flow and liquidity — can affect a defendant’s ability to pay.
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IP valuation using the relief from royalty method
November / December 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 748
Abstract: In today’s business environment, the valuation of intellectual property (IP) is critical — both to comply with accounting rules and for purposes of financial reporting, tax compliance, litigation, or sale or licensing transactions. Several methods can be used to value IP. One of the most effective can be the relief from royalty (RFR) method. This income-based method estimates the portion of a company’s earnings attributable to an IP asset based on the royalty rate the company would have paid for the use of the asset if it didn’t own it.
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Following the money trail in divorce cases
November / December 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 666
Abstract: Missing income is a common problem in divorce cases. If one spouse owns a business, the other spouse may allege that the business earns more than its financial records suggest. This requires a forensic expert to look behind the numbers and use forensic accounting techniques to search for unreported income. Forensic experts use two basic approaches. One is to search for hidden cash — experts typically rely on four forensic accounting techniques. The other is to identify concealed sources of income.
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Plug the drain – How to detect financial statement fraud
November / December 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 937
Abstract: Sarbanes-Oxley notwithstanding, the Association of Certified Fraud Examiners (ACFE) states that U.S. organizations continue to lose about 7% of their annual revenues to fraudsters. It also has found that financial statement fraud is the costliest form. This article looks at common financial statement schemes, and points out red flags in both the documents and in employee behavior that might indicate fraud. A sidebar points to several financial ratios and indicators that signal potential financial statement fraud.
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SBA tightens business acquisition lending requirements
November / December 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 516
Abstract: This brief article summarizes a recent SBA move to rein in lenient lending practices to small businesses: SBA Standard Operating Procedure (SOP) 50 10 5(A). The new requirement calls on business acquisition loan applicants to submit an independent business appraisal for all loans greater than $250,000 (excluding the appraised value of real estate and equipment). The article explains that the SBA defines a “qualified source” for the independent appraisal as someone who regularly receives compensation for business valuation. It also notes the controversy resulting from restrictions the SBA has placed on loans based on a company’s goodwill.
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One price doesn’t fit all — Making sense of valuation discounts
November / December 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 847
Abstract: Valuation is based on the specific facts and circumstances of a situation. If the controlling interest and all the minority interests are valued separately, they may add up to more or less than what could be received if the company were sold as a whole. This article discusses the types of valuation discounts that may affect value, including minority interest and lack of marketability discounts. It explains the importance of the degree of control represented by a block of stock and uses a hypothetical case study to illustrate the way discounts actually work in the real world. The article points out that a qualified appraiser can find well-supported discounts that will withstand IRS scrutiny.
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Knowing value is half the battle
November / December 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 721
Abstract: While baby boomers nationwide are considering selling their businesses in preparation for retirement, a majority of them haven’t had their businesses appraised by a valuation professional within the last year. This article looks at a business’s value drivers — and value drainers — listing several key factors investors look for when valuing a business interest, including profits and cash flow, competent asset management and reinvestment in research and development. The article explains that an objective valuator can help business owners find ways to minimize risks and maximize selling price when it’s time to retire.
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Built-in capital gains tax can be a real drag
November / December 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 851
Abstract: Capital gains tax obligations can significantly affect value, especially for an established holding company with low cost basis. Even if a sale isn’t imminent, investors consider tax obligations when buying and selling business interests. This article notes that courts increasingly embrace valuation discounts for built-in capital gains tax, using a case study to illustrate the point that it’s not so much whether capital gains tax affects value but how to quantify the discount. Because the IRS and the Tax Court haven’t agreed on the proper method for quantifying the discount, it’s even more important that the discount be well supported by facts and legal precedent.
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New data sheds light on Daubert challenges
November / December 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 537
Abstract: Recent PricewaterhouseCoopers data shows an increase in the number of Daubert challenges and reveals some of the factors critical to the outcomes in financial expert testimony challenges. Research found that lack of reliability was the leading cause of a financial expert opinion being excluded, but jurisdiction can also play a role.
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Lost profits damages – The trouble with start-ups and never-started-at-alls
November / December 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 750
Abstract: When calculating lost profits damages for businesses involved in litigation, damages experts can use the company’s historic financial statements to make their projections — if the business has a history. However, calculating damages for early-stage and never-launched businesses requires a different set of analytical tools if experts are to prove to a court’s satisfaction that their damages estimates are reasonably certain. This includes economic and financial data for the subject company, but also market data.
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Secrets behind securities fraud
November / December 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 637
Abstract: Growing numbers of individuals, entities and institutions have poured into the securities and commodities markets in recent years. Increased participation has, in turn, led to increased opportunities for — and incidents of — fraud. Particular schemes to look out for are Ponzi and pyramid schemes, along with “pump and dump” scams that fraudulently inflate stock prices.
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Putting a price on intangibles – Intellectual property requires valuation smarts
November / December 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 776
Abstract: Intellectual property such as patents, copyrights and trademarks can present some of the most difficult business valuation challenges. The American Society of Appraisers has recognized this by issuing a standard for valuing such intangible assets. The standard, known as BVS-IX, Intangible Asset Valuation, gives attorneys an idea of what to expect from their valuation experts and provides a baseline for evaluating the work of opposing experts. This article takes a look at factors appraisers consider when valuing intangible, while a sidebar lists some specific valuation factors addressed by the standard.
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Ask the Advisor – Q. Should I sell my company in an auction?
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 434
Abstract: To attract substantial buyer interest when putting a business up for sale, sellers might want to consider an auction. This competitive sale process is designed to get the best possible price and most attractive terms. Advantages include speed, higher prices, and the presence of backup bidders.