Valuation/Lit. sup./Fraud/M&A
Showing 1441–1456 of 1569 results
-
Occupational hazards: An internal fraud update
January / February 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1149
Abstract: This brief article highlights some recent trends found in the Report to the Nation on Occupational Fraud & Abuse published in 2008 by the Association of Certified Fraud Examiners (ACFE). These trends include a rise, since 2006, from 5% to 7% in occupational fraud in U.S. organizations. In addition, the report notes that small businesses continue to be more vulnerable to fraud and that the industries most often hit include banking and financial services, government and health care.
-
What are the options when valuing share-based compensation?
January / February 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1156
Abstract: Recently, employee stock options (ESOs) have lost some of their allure as a compensation tool. New mandatory expensing of ESOs highlights the importance of choosing an appropriate option-pricing model as well as the challenge of valuing these options in closely held companies. This article explains that selecting the wrong model can significantly distort stock option value and, therefore, the company’s reported net income. The article points out that the traditional Black-Scholes approach may not adequately reflect outstanding ESOs’ impact on the value of a closely held company.
-
Before and after – Court paints picture of lost profits and other calculations
January / February 2009
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1150
Abstract: In Floorgraphics Inc. v. News America Marketing In-Store Services Inc., the U.S. District Court for the District of New Jersey provided valuable insight into the “before-and-after” method, guideline company use, and marketability discount availability. This article discusses the ins and outs of the case, noting the importance of demonstrating in court that financial experts’ methods are reliable in order to better defend them against attacks on their reliability in the form of Daubert challenges. Case citation: Floorgraphics Inc. v. News America Marketing In-Store Services Inc., No. 04-3500 (D.N.J. 02/04/2008).
-
For what it’s worth: Valuation in the courts – IRS plays role reversal in charitable contribution case
Winter 2009
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 616
Abstract: In charitable contribution cases, taxpayers want property appraised as high as possible to maximize their deductions. Meanwhile, the IRS seeks low appraisals for assets donated to charities to maximize tax receipts. But, in a recent charitable contribution case, the IRS reversed its usual role, arguing in favor of hefty discounts for lack of control and marketability. The result may be surprising. Citation: Bergquist, et al v. Commissioner, 131 T.C. No. 2, July 22, 2008.
-
What factors determine company-specific risk?
Winter 2009
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 700
Abstract: Valuation is both art and science. When financial data and empirical research aren’t enough, appraisers typically make subjective assessments to bridge the gap — for example, when quantifying company-specific risk. This article looks at what factors appraisers consider to estimate company-specific risk.
-
FASB 141(R), Business Combinations – Revised accounting standard has valuation implications
Winter 2009
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 1191
Abstract: The accounting rules for mergers, acquisitions and other types of business combinations underwent a major overhaul in December 2007. The revised standard, Financial Accounting Standards Board (FASB) Statement No. 141 (revised), Business Combinations, or FASB 141(R), is effective for fiscal years beginning after December 15, 2008. This article revisits the subject of business combination in light of the new standard, exploring its valuation implications.
-
Turning a critical eye … 7 questions to ask about an appraisal report
Winter 2009
Newsletter: Valuation Concepts
Price: $225.00, Subscriber Price: $157.50
Word count: 784
Abstract: The content and format of business valuation reports may differ somewhat depending on appraiser preferences, firm protocol and the requirements of any professional organizations to which the appraiser belongs. But many of the underlying analyses and explanations are similar. This article suggests seven questions to ask that can help ensure an appraiser has covered all the bases.
-
Less can be more — When calculations offer an alternative to valuations
January / February 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1035
Abstract: Calculations can be an efficient, economical alternative to detailed, written valuation reports — but only under the right circumstances. This article explains what a calculation is, identifies the pros and cons, and considers some examples of when a calculation might (or might not) work. The article notes that whether or not a calculation will work depends on the engagement specifics, including the appraisal’s intended use, the interest being valued and the availability of information.
-
Statistics add value to appraisals
January / February 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Statistical analyses can supplement an appraiser’s professional judgment, adding sophistication and credibility to the business valuation. This article looks at regression analysis and uses an example to illustrate how a regression analysis can help an appraiser build stronger, more defendable valuations. The article points out that regression analysis, like any statistical tool, cannot substitute for a valuator’s judgment and experience.
-
How fraud affects value — and valuation
January / February 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1455
Abstract: Businesses lose an average of 7% of their annual revenues to fraud, according to the 2008 Report to the Nation on Occupational Fraud & Abuse issued by the Association of Certified Fraud Examiners. This article discusses what fraud consists of, how it may affect value, and how appraisers take fraud risk into account when valuing companies. The article points out, however, that appraisers need to beware of double-counting the effect of fraud risk on value, which may cause them to undervalue business interests.
-
Only words? Forensic document examinations consider content and context
January / February 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 725
Abstract: Fraud investigations almost inevitably require documentary evidence to be examined — and it’s not a job for amateurs. Professional forensic document examiners review not only the content of documents. They also consider physical and latent evidence, such as handwriting, alterations and faded or decomposed material. To ensure accuracy and opinions that will stand up in court, experts follow scientific procedures and use technologies such as electrostatic detection apparatus.
-
Home run – FLLCs enjoy a Tax Court victory
January / February 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 898
Abstract: In recent years, taxpayers have found themselves on the losing end in cases questioning the legitimacy of FLPs and FLLCs. But, in a 2008 case, Estate of Mirowski v. Commissioner, the U.S. Tax Court threw a curve ball, allowing family FLLC assets to be excluded from the decedent’s gross estate. This article summarizes the case and suggests that taxpayers can use the court’s findings to form and operate these vehicles.
-
Financial statement analysis – Don’t value a business without it
January / February 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 708
Abstract: Merely accepting a company’s financial statements at face value can lead to seriously undervaluing or, more likely, overvaluing a business. Often, closely held companies fail to comply with GAAP, and financial data may be shaped to favor the owner’s interests. This article explains how experts review several years of financial statements and make normalizing adjustments such as removing nonrecurring items and adjusting expenses that a potential buyer wouldn’t likely incur. They also look for suspicious trends and relationships.
-
Discounting future losses for lost profits
January / February 2009
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 1042
Abstract: In many business litigation cases, financial experts must project damages for losses that the plaintiff will incur in the future because of the injury involved. Discounted future losses represent the amount of compensation needed now to replace that future lost income. But, as this article discusses, losses in a litigation context are different from the lost income that comes up in business valuation situations, requiring an expert to calculate a discount rate based on relevant risks.
-
Ask the Advisor – Q. Does my private company need to comply with any SOX provisions?
Year End 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 477
Abstract: This column explains how private companies can benefit from adopting Sarbanes-Oxley (SOX) provisions — particularly if they expect their business to be acquired by a public company. SOX adherence makes sellers more attractive to public company buyers, which can result in a higher sale price. Compliance with SOX can also improve a company’s image and reputation with investors, lenders and the public by demonstrating it has nothing to hide.
-
A sprint and a marathon – How dual-purpose integration supports short- and long-term goals
Year End 2008
Newsletter: Merger & Acquisition Focus
Price: $225.00, Subscriber Price: $157.50
Word count: 729
Abstract: Sometimes M&A dealmakers focus too much on the first few months of postclosing integration and neglect to plan for the long-term success of a deal. But as this article argues, dual-purpose integration plans that are closely coordinated, yet have distinct purposes, help to immediately secure deal benefits as well as set the merged organization on the path to future success.