Valuation/Lit. sup./Fraud/M&A
Showing 1345–1360 of 1569 results
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How to sell your sale to employees
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Just because selling owners are thrilled to have found a good buyer doesn’t mean their employees will greet the news with the same enthusiasm. In fact, there may be negative reactions and even strong resistance. Left unchecked, employee dissatisfaction can depress a deal’s ultimate value — and in extreme cases even cause its collapse. So it’s important to plan how to sell the sale of the company to these critical stakeholders, which includes communicating with candor and introducing high-performing individuals to their new managers so they can initiate a working relationship before the deal closes.
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Performance anxiety? Earnouts can help
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 713
Abstract: Given the current state of the U.S. economy, it’s not surprising that both business buyers and sellers are entering M&A transactions with increased trepidation. One way to get the deal done is by using an earnout, which sets a company’s purchase price according to how well it performs after it’s sold. It can be especially useful in bridging valuation gaps or overcoming negotiation stalemates in which the parties disagree about the company’s future profitability. But there are potential pitfalls, so participants need to ensure the agreement protects their interests and anticipates potential conflict.
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Manage risk the right way
October / November 2009
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 750
Abstract: Risk management has become a big concern for both business buyers and sellers during the recent economic downturn. More than ever, companies pursuing an M&A transaction need to adequately account for the possibility that their deal will fall through before it’s complete or fail to meet postmerger objectives. There are many different kinds of risks, but this article shows that there are also a number of strategies buyers and sellers can take to minimize the risk of catastrophe. A sidebar looks at two ways to prevent stock market volatility from destroying a deal between public companies.
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For What It’s Worth: Valuation in the Courts – Attorney-client privilege not guaranteed
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 413
Abstract: Attorney-client privilege is a cornerstone of our legal system. Yet, in a recent minority shareholder suit for fraud and breach of fiduciary duty, the New York Supreme Court ruled that attorney-client privilege doesn’t generally extend to communications between a valuation expert and attorney. Thus, before sharing information with a financial professional or committing a conversation to writing, business owners and their attorneys need to consider how opposing counsel might use it in the case at hand.
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Research shows bankruptcy drives financial statement fraud
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: The rough economy is pushing an increasing number of businesses into bankruptcy. And, according to recent research, financial state¬ment fraud may be more prevalent in companies that file for bankruptcy. A couple of recent studies take a look at where the fraud is coming from and whether Sarbanes-Oxley controls are proving effective.
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The value of a workforce – Appraisal of human capital often necessary, complex
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 639
Abstract: The rough economy has brought an uptick in the number of layoffs and furloughs. And when such events occur, the estimated value of the affected workforce can change. Thus, appraisals of this nature are becoming more and more prevalent. There are a variety of specific reasons to obtain a workforce appraisal, including when pricing and structuring a business sale or merger or for determining income and property taxes. And there are three basic valuation approaches that might be used.
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Splitting charitable remainder trusts in divorce – What are the tax consequences?
Fall 2009
Newsletter: Expert / Valuation & Litigation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 955
Abstract: While the division of some marital assets in divorce can seem straightforward, questions have arisen about making a pro rata, 50-50 division of a charitable remainder trust (CRT) into two trusts for the spouses. In response, the IRS issued Revenue Ruling 2008-41, which addresses the tax consequences of such a division. Specifically, this article addresses excise taxes in regard to self-dealing, taxable expenditures, and asset transfers between private foundations, while a sidebar looks at whether a CRT can be divided into separate trusts for multiple — but nonmarried — income recipients without triggering adverse tax consequences.
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Avoiding settlement mistakes
September / October 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 489
Abstract: Deciding whether to settle a case requires an evaluation of the likely outcome if it goes to trial. But according to one study, parties make the wrong decision a lot more often than one might think. The study discusses the types of cases and situations where litigants are most prone to making the wrong decision. It also highlights the value of expert analysis, decision-tree analysis and other strategies that can help take the guesswork out of the settle-or-litigate decision.
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Fairness opinions can help provide needed assurance
September / October 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 714
Abstract: Many shareholders have challenged transactions that seem to benefit corporate “insiders,” believing that the decision makers aren’t fulfilling their fiduciary duty to act in the best interests of the corporation and its shareholders. But companies can help insulate their directors and officers from personal liability and avoid shareholder litigation by obtaining a fairness opinion — a written opinion from an independent financial expert that a proposed transaction is fair, from a financial perspective, to the corporation’s shareholders or a particular group of shareholders.
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Vying for the rights to flat-screen TV technology – No damages for breach of patent license
September / October 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 760
Abstract: Last summer, two companies engaged in a fierce battle over licensing rights to a patented flat-screen TV technology. In Nano-Proprietary Inc. v. Canon Inc., the U.S. Court of Appeals for the Fifth Circuit held that a patent licensor couldn’t terminate a “perpetual” license agreement, despite the licensee’s material breach of the agreement. In addition, the licensor couldn’t recover monetary damages, because it had failed to establish the amount of damages with reasonable certainty. This case shows how a qualified valuation expert can help eliminate speculation.
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Don’t play games with goodwill
September / October 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 938
Abstract: The Financial Accounting Standards Board’s (FASB’s) Statement of Financial Accounting Standards (SFAS) No. 142 requires a company to test goodwill for impairment between annual tests if certain “triggering events” — including “a significant adverse change in legal factors or in the business climate” — indicate that its fair value has deteriorated. This article shows that testing for goodwill impairment is a two-step process, and how a valuator can help put together a goodwill allocation strategy designed to minimize the impact of impairment on the client’s financial statements. A sidebar discusses SFAS 157, which provides accounting rules for determining fair value, and a FASB Staff Position offering guidance on applying SFAS 157 when the market is inactive or when available pricing data reflects distressed sales.
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Finding the appropriate valuation standard
September / October 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 916
Abstract: Valuation isn’t static and can change depending on the purpose of the valuation. This article looks at the three most common standards of value: fair market, investment and fair. It briefly defines each standard and discusses the circumstances in which one standard may be more appropriate than another. The article points out that identifying the appropriate valuation standard up front can minimize confusion down the road. The goal is to arrive at a reasonable and supportable value conclusion in light of all the surrounding facts and circumstances.
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Shortcuts can be embarrassing — and costly
September / October 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 561
Abstract: This brief article warns that novice valuators who sidestep valuation procedures to save money — as well as clients who misrepresent the facts to skew valuation results — may be in for a rude awakening. Courts are becoming increasingly sophisticated in appraisal matters. When a valuator skips steps or fails to understand a company’s operations, the court is likely to discount — or even reject — the expert’s opinion. The article uses the recent case Burr v. Burr to illustrate this point. Case citation: Burr v. Burr (2008 WL 4906271, Mass. App. Nov. 18, 2008).
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Avoid M&A pitfalls with targeted due diligence
September / October 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 765
Abstract: Anyone buying, selling or merging with a business needs to “kick the tires” before signing on the dotted line. This article explains that a financial professional can conduct due diligence procedures that target high-risk areas for any industry. The article lists seller — and buyer — M&A concerns. It also notes that do-it-yourself M&As can lead to disastrous outcomes and unexpected surprises, pointing out that engaging financial and legal professionals early in the process can save money and stress over the long run.
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How valuators assess the rising risk of fraud
September / October 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 758
Abstract: The current economic downturn has produced an upswing in incidents of occupational fraud, so it’s imperative for businesses to step up efforts to deter and detect it. An important part of the valuation process is identifying potential risks and gauging whether management has taken appropriate action to mitigate those risks. This article explains how valuators evaluate internal controls and corporate culture, tailoring their analyses of fraud risks based on the subject company’s size, complexity, industry and goals. The article has an accompanying pie graph chart that shows business fraud scheme type and prevalence over the past few years.
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User-created data: Handle with care
September / October 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 457
Abstract: Production of electronically stored information (ESI) has become a routine part of discovery. But the primary target of an ESI request often is user-created data — a type of information that’s constantly evolving and can prove elusive. A qualified expert can help extract all the user-created data needed.