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Showing 113–128 of 384 results
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R. Kashmiry & Assocs., Inc. v. Ellis – Valuations can preempt shareholder agreement litigation
March / April 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 442
Abstract: When entrepreneurs team up to form a new (or combined) business, they often have the forethought to include business valuation provisions in their partnership or shareholder agreements. These provisions help facilitate clear and easy resolution in case an owner leaves the business. This article summarizes a recent case that demonstrates how simply drafting a business valuation provision may not suffice — hiring an outside expert to value the business on a routine basis can provide an added level of protection against protracted litigation. R. Kashmiry & Assocs., Inc. v. Ellis, 16 MA 0126, Ohio App., Jan. 26, 2018
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Applying the Daubert standard in federal cases
March / April 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 576
Abstract: More than 25 years after the U.S. Supreme Court affirmed judges’ roles to act as gatekeepers against “junk science,” hundreds of experts are still being challenged under Daubert each year. This article provides examples of how federal courts evaluate the expert’s qualifications, as well as his or her methodology based on four factors: testing, peer review, error rate and acceptability. Daubert v. Merrell Dow Pharmaceuticals Inc., 113 S.Ct. 2786, June 28, 1993 Rover Pipeline LLC v. 10.55 Acres of Land, 2018 U.S. Dist., Case No. 5:17-CV-239, 2018 WL 4386024, Sept. 14, 2018
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How journal entries may signal fraud
March / April 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 629
Abstract: With a median loss of $800,000, financial statement frauds are the costliest type of white collar crime, according to the 2018 Report to the Nations by the Association of Certified Fraud Examiners (ACFE). This article describes how auditors and forensic accountants can test journal entries to detect financial misstatement, including the benefits of computer-assisted audit techniques.
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Limited partner or assignee interest: Tax Court sides with IRS
March / April 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 898
Abstract: Wealthy taxpayers sometimes incorporate family limited partnerships (FLPs) in their estate plans to help minimize federal estate and gift taxes. Historically, the IRS has been aggressive in challenging such arrangements. This article summarizes a recent case in which the U.S. Tax Court sided with the IRS, offering a valuable reminder that, when it comes to the federal tax effect of intrafamily transfers of interests, labels aren’t determinative. Rather, the court will consider the substance of the transaction. A sidebar explains how the court handled valuation discounts. Estate of Streightoff v. Commissioner, T.C. Memo. 2018-178, Oct. 24, 2018
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Screening for signs of fraud – Beneish model helps detect earnings manipulation
January / February 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 439
Abstract: Financial statement fraud can be costly. So, early detection is important to mitigate losses. This article describes a screening tool known as the Beneish model that can help clients quickly assess the likelihood of earnings manipulation. It uses eight financial metrics to determine the probability that revenue has been overstated and expenses have been understated.
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Tax Cuts and Jobs Act – Factoring tax reform into the valuation equation
January / February 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 607
Abstract: The Tax Cuts and Jobs Act (TCJA) — enacted in late 2017 — will fundamentally alter the tax rules for businesses. This article explains some of the favorable and unfavorable provisions that valuation professionals must evaluate when they estimate the value of business interests.
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Does your case call for a calculation or full-blown valuation?
January / February 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 659
Abstract: The distinction between value calculations and value conclusions has received significant attention in the business valuation community over the last year. Calculations can be a less expensive alternative, but they’re not right for every case. This article compares these two levels of service provided by valuation experts, explains when each service level may be appropriate and highlights a recent case in which a calculation of value was admitted into evidence. Robert Joseph Rohling v. Lylie Alexandra Rohling, Court of Civil Appeals of Alabama, No. 2160859 and 2160860, June 1, 2018
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Settlement proceeds: To tax or not to tax?
January / February 2019
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 871
Abstract: When negotiating a settlement in employment law cases, employees sometimes overlook how the language of the settlement agreement can have significant tax consequences, depending on what’s included in the description of the claims being settled. This article summarizes a recent U.S. Tax Court ruling in favor of the IRS, which found that the taxpayer’s discrimination and work environment settlement proceeds were indeed taxable. A sidebar summarizes the tax treatment for various types of damages awards. Zinger v. Commissioner, T.C. No. 2018-33, July 2, 2018
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For richer, for poorer – Factoring valuation into premarital agreements
November / December 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 445
Abstract: Roughly half of U.S. marriages end in divorce. So, many people enter into premarital agreements before they tie the knot. This article describes why it can be risky for couples to cut corners on hiring a valuation expert to help draft the agreement, especially if one of the parties owns a business.
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Valuation matters when a company is liquidating
November / December 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 628
Abstract: Even in a bull market, some businesses struggle to make ends meet. This article highlights how outside financial experts can help struggling owners make informed decisions about their company’s future and maximize liquidation proceeds. It also explains how experts can help potential buyers of financially distressed businesses determine the appropriate asking price and conduct acquisition due diligence.
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Data analytics roundup
November / December 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 565
Abstract: When it comes to fraud detection, the amount of available data in the company’s paper and electronic records can seem staggering. This article explains how modern forensic accounting experts use analytical tools — such as association, outlier and cluster analyses — to unearth fraud in today’s data-driven world.
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What’s the fairest method of apportionment? Court rules on damages from breached lawnmower improvement
November / December 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 879
Abstract: When patents covering multicomponent inventions are infringed, a key question is: How should damages be “apportioned” to adequately compensate the patentee for only losses due to infringement of a product improvement? This article summarizes a recent case where the U.S. Court of Appeals for the Federal Circuit specifically addressed whether apportionment should be based on the royalty base or the royalty rate. A sidebar explains how the Federal Rules of Evidence (FRE) have recently been updated to streamline the admissibility of digital evidence. Exmark Manufacturing Company Inc. v. Briggs & Stratton Power Products Group, LLC, No. 2016-2197, 879 F.3d 1332, January 12, 2018
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What’s normal? Normalization adjustments are essential in valuation
September / October 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 427
Abstract: Fine-tuning financial statements helps a business valuation expert compare the subject company’s performance to the financial performance of similar public or private companies. This article explains normalization adjustments for 1) unusual and nonrecurring items, 2) nonoperating assets, 3) related-party transactions, and 4) accounting norms. Regardless of how an adjustment may be classified, however, professional judgment is essential to ensure meaningful comparisons.
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Updated survey provides insight into fraud trends and prevention methods
September / October 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 584
Abstract: The Association of Certified Fraud Examiners (ACFE) has released its Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse. Consistent with previous studies, the ACFE estimates that occupational fraud costs the typical organization 5% of its revenue every year. This article discusses the report’s findings, including median fraud losses, popular fraud schemes and the most common methods of detection.
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How causal assumptions can lead to damages dilemmas
September / October 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 531
Abstract: Whether due to time, cost or other constraints, attorneys sometimes ask damages experts to simply assume causation. This article discusses a recent Texas Supreme Court case where that assumption backfired, substantially reducing the amount of damages awarded to the plaintiff. Horizon Health Corp. v. Acadia Healthcare Co., Inc., No. 15-0819, 520 S.W.3d 848, Supreme Court of Texas, May 26, 2017
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Delaware high court endorses deal price for fair value in appraisal actions
September / October 2018
Newsletter: Advocate's Edge / Litigation Support
Price: $225.00, Subscriber Price: $157.50
Word count: 896
Abstract: In a landmark decision, the Delaware Supreme Court has made clear its preference for valuations based on the deal price in appraisal proceedings. This article summarizes the case, which concludes that “the collective judgment of many” is generally considered superior to other valuation models imposed by a single analyst. A sidebar highlights a subsequent statutory appraisal case that was remanded to the Chancery Court on similar grounds. DFC Global Corp. v. Muirfield Value Partners, L.P., No. 518, 2016, 172 A.3d 346, Supreme Court of Delaware, August 1, 2017 Dell, Inc. v. Magnetar Global Event Driven Master Fund Ltd., No. 565, 2016, 177 A.3d 1, Supreme Court of Delaware, December 14, 2017