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Showing 33–48 of 324 results

  • Weak damages evidence can mean nominal damages

    January / February 2020
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 444

    Abstract: A start-up company lost out on a jury’s $4.35 million lost profits award in a breach of contract action after a federal court found its expert’s “yardstick” analysis faulty. This article explains what happened, why the U.S. Court of Appeals for the Second Circuit upheld a $1 damages award and how the case may apply to other clients who rely on financial experts to quantify economic damages.

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  • Marroquin v. Marroquin – Evaluating goodwill for a one-person business

    January / February 2020
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 610

    Abstract: In divorce cases, the treatment of a closely held business’s “goodwill” varies from state to state. It also depends on the nature of the business. This article discusses the concept of goodwill in a divorce context and highlights a recent Utah appeals court case which determined that there was no enterprise (institutional) goodwill in a business that entirely depended on the owner-spouse’s efforts and reputation.

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  • Control risk with a comprehensive ERM program

    January / February 2020
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 621

    Abstract: Business owners can’t eliminate all risk factors. But they can manage their company’s risk profile by implementing an Enterprise Risk Management (ERM) program. This article explains how financial experts can help business owners adopt an integrated approach to assess and manage fraud risk.

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  • To tax-affect or not to tax-affect – Valuing pass-through businesses

    January / February 2020
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 866

    Abstract: The debate in valuation circles over tax-affecting — reducing a pass-through entity’s projected future income for hypothetical corporate income taxes on that income — has heated up in recent years. This article outlines arguments for and against tax-affecting. It also explains how recent tax law changes may have leveled the playing field between C corporations and pass-through entities. A sidebar summarizes a recent case in which the U.S. Tax Court allowed tax-affecting methodology to account for the tax consequences of pass-through status.

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  • Calculating damages for intangibles

    November / December 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 414

    Abstract: Financial experts need some predictable building blocks to construct a reliable estimate of lost profits or reasonable royalties in cases involving intangible assets. This article highlights the types of evidence and analysis that may be needed to support an estimate of damages in breach of contract, infringement and other tort claims.

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  • When good employees go bad – Preventing and detecting employee cyberattacks

    November / December 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 588

    Abstract: Dishonest workers can initiate a cyberattack by stealing valuable information from a company’s computer network and using it for personal gain. This article explains how these crimes work, what motivates some employees to steal and ways companies can prevent and detect cyberattacks.

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  • Risky business – FAQs about the cost of capital

    November / December 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 663

    Abstract: Under the income approach to valuing a private business interest, an expert discounts the subject company’s future earnings using a rate of return that’s based on the risk of the investment. This article answers common questions that arise when evaluating the discount rate, which is also known as the “cost of capital.”

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  • How control and marketability affect the value of minority interests

    November / December 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 842

    Abstract: Discounts for lack of control and lack of marketability rank among the most contentious issues when valuing a minority interest in a privately held company. This article explains these discounts and the evidence that’s used to quantify them. A sidebar describes another discount that may apply to businesses with appreciated assets: the built-in gains discount.

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  • Kress v. United States – Federal court and the IRS approve tax affecting for S corporation

    September / October 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 465

    Abstract: For decades, the IRS has taken the position that pass-through entities possess valuable tax advantages. And the U.S. Tax Court has agreed, routinely ruling that the earnings of pass-throughs should not be tax affected. This article summarizes a recent federal district court ruling that accepted a valuation report in which the earnings of an S corporation business were tax affected as if it were a regular C corporation. The court also rejected the application of an S corporation premium. Kress v. United States, 2019 WL 1352944, U.S. District Court, E.D. Wisconsin, Case No. 16-C-795, March 26, 2019

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  • Look beyond deal price in statutory appraisals

    September / October 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 565

    Abstract: Statutory appraisals in dissenters’ actions are typically based on either the deal price or the company’s unaffected market value as a going concern. This article summarizes a recent Colorado Court of Appeals case that affirmed a decision to consider more than just deal price when determining the fair value of a minority shareholder’s interest. Crocker v. Greater Colorado Anesthesia, P.C., 2018 Colo. App. 33, 2018 WL 1247618, Mar. 8, 2018

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  • What’s the value of a noncompete?

    September / October 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 663

    Abstract: Noncompete agreements can be valuable to a business. They help retain key employees, safeguard inside information and prevent unfair competition. This article explains how financial experts value noncompetes and why it’s important in M&A and beyond.

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  • Spotlight on securities fraud – Consumer debt portfolios allegedly used in recent Ponzi scheme

    September / October 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 817

    Abstract: It’s been more than a decade since Bernie Madoff made headlines for his massive Ponzi scheme. That case taught a valuable lesson: If an investment seems too good to be true, it probably is. Unfortunately, some investors are still being duped by slick con artists who promise quick and easy returns. This article highlights another recent securities fraud indictment last fall and explains how these frauds work. A sidebar discusses ways a forensic accounting expert can help identify the signs of securities fraud scams.

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  • MUM’s the word – Court upholds simplified method to allocate goodwill in divorce

    July / August 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 459

    Abstract: When the marital estate in a divorce case includes a private business interest, a valuation expert may be needed to allocate value between personal and business goodwill. To determine the proper allocation, courts increasingly are accepting a straightforward approach known as the multiattribute utility model (MUM). This article explains how this model works and how it was accepted in a recent Illinois Second District Court of Appeals case. In re Marriage of Preston, No. 2-17-0656, Ill. App., Aug. 1, 2018

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  • 4 signs of A/R fraud

    July / August 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 603

    Abstract: Accounts receivable (A/R) are often a popular fraud target, because of the high volume of transactions that go through the A/R account. These types of fraud can be costly, but early detection can help minimize losses. This article identifies four signs that something is amiss with receivables: slow turnover, missing controls over financial reporting, excessive write-offs and errors, and customer complaints.

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  • Fair market value: Dissecting Revenue Ruling 59-60

    July / August 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 659

    Abstract: IRS Revenue Ruling 59-60 provides a step-by-step outline of the factors to consider when valuing a private business. This article outlines those factors, as well as revealing other hidden details in the fine print of this guidance.

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  • Exelon Corp. v. Commissioner – Attorney’s role in property valuation backfires

    July / August 2019
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 821

    Abstract: The key to a solid appraisal is the expert’s independence. Though it can sometimes be tempting to try to influence an appraiser’s conclusions, the potential consequences can be costly. This article summarizes a recent tax case where the Seventh Circuit Court of Appeals found that meddling by the taxpayer’s legal counsel in the appraisal process rendered the reports “useless,” leading to almost $90 million in underpayment penalties. A sidebar highlights limits on like-kind exchanges under the Tax Cuts and Jobs Act. Exelon Corp. v. Commissioner, 7th Cir., No. 17-2964, 17-2965, October 3, 2018

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