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Viewpoint on Value
Showing 1–16 of 318 results
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Jensen v. Jensen – Are retained business earnings marital property?
March / April 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 443
Abstract: The Court of Appeals of Michigan recently addressed whether a business’s retained earnings should be included in a marital estate, if the business is one of the spouse’s separate property. This article summarizes the details of this case and why the court ultimately decided that this issue should be determined on a case-by-case basis. Jensen v. Jensen, No. 333569 (Mich. Ct. App., Jan. 9, 2018)
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Researching the effect of COVID-19 on the DLOM
March / April 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 592
Abstract: Business valuation experts often apply a discount for lack of marketability (DLOM) when valuing a private business interest. This adjustment reflects the relative difficulty of converting the interest into cash, quickly and at minimal cost, compared to publicly traded stocks. This article highlights common sources of empirical data that experts use to quantify the DLOM and explains how the COVID-19 crisis has affected the DLOM.
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How to calculate damages in fraud cases
March / April 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 650
Abstract: When courts order restitution from fraud, it may be difficult to determine how much the company has actually lost. This article explains how forensic accounting experts calculate damages in accordance with state laws and prepare presentations that convince judges to accept their conclusions.
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Shareholder buyout: Battle of the valuation experts
March / April 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 833
Abstract: In a recent New York buyout case, the sole issue before the court was the fair value of the petitioner’s interest in the respondent corporation. This article explains that outcome ultimately turned on the credibility of opposing valuation experts and the soundness of their methods. A sidebar highlights another shareholder dispute where the Delaware Chancery Court was provided with unreliable valuation opinions from both sides. Sergio Magarik v. Kraus USA, Inc., No. 606128/2015 (N.Y. Sup. Ct., Apr. 28, 2020) William Richard Kruse v. Synapse Wireless, Inc., No. 12392-VCS (Del. Ch., Apr. 22, 2020)
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Why experts should participate in the discovery process
January / February 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 429
Abstract: In commercial litigation, attorneys who collect facts about a case and later hire an expert to analyze those facts often miss valuable opportunities to strengthen their case. This article explains how involving financial experts early in the discovery phase can help elicit information that reinforces expert opinions and lends credibility to testimony related to business valuations and damages calculations.
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COVID-19 causes upswing in wrongful termination claims
January / February 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 562
Abstract: Many employers have furloughed or laid off workers during the COVID-19 crisis, causing a surge in wrongful termination cases and other types of employment litigation. Financial experts play a critical role in these cases. This article describes the factors that go into a defensible lost earnings calculation.
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Subsequent events: What was “known or knowable” on the valuation date?
January / February 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 668
Abstract: The COVID-19 pandemic has affected the value of many privately held businesses. When valuing a business in today’s uncertain conditions, experts must put themselves in the shoes of hypothetical investors and consider only relevant information that was known (or knowable) on the valuation date. This article explains the general rules about when events that happen after the valuation date may be considered in a valuation and how the pandemic is muddying this issue.
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Robinson v. Langenbach – Applying valuation discounts in statutory buyouts
January / February 2021
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 857
Abstract: In most states, the appropriate standard of value in statutory buyouts is fair value. Unlike fair market value, fair value generally doesn’t include discounts for lack of control or marketability. This article summarizes a recent minority interest buyout case that highlights how courts may have broad discretion when valuing minority interests for buyout purposes — and applying valuation discounts — based on case facts. A sidebar provides an example of discounts being denied. Robinson v. Langenbach, No. SC97940, Supreme Court of Missouri, En Banc (May 12, 2020) Hartman v. BigInch Fabricators & Construction Holding Company, No. 19A-PL-2263, Court of Appeals of Indiana (May 5, 2020)
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Optical Works and Logistics v. Sentinel Insurance Company – Using financial experts to support business interruption claims
November / December 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 443
Abstract: As a result of pandemic-related shutdowns, many businesses have filed claims under their business interruption insurance policies. These claims have resulted in litigation over the scope of coverage and the meaning of key policy terms. This article highlights a pre-COVID-19 case that demonstrates the importance of using a financial expert to determine losses when making business interruption claims. Optical Works and Logistics v. Sentinel Insurance Company, No. 15-163-JJM-LDA, D.R.I., March 26, 2020
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Handle financial testimony by lay witnesses with care
November / December 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 576
Abstract: When business owners or other laypeople testify on complex financial or valuation issues, there’s a risk that their testimony will be found inadmissible in commercial litigation. This article explains the Federal Rules of Evidence that apply to these witnesses and how a credentialed financial expert can help avoid potential pitfalls. United States ex rel. Technica, LLC v. Carolina Cas. Ins. Co., No. 08-CV-01673-H (KSC), S.D. Cal., April 11, 2012 Ruhr v. Immtech International, Inc., 570 F.3d 858, 7th Cir., June 30, 2009
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Restructuring: How business owners can get their groove back
November / December 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 692
Abstract: The COVID-19 crisis has affected virtually every business. Many small business owners may be ready to throw in the towel, but restructuring can provide a fresh start. This is a highly complex process that requires continuous monitoring to be effective. This article outlines four ways financial experts can help management get back in the groove by harnessing cash flow and actively managing the company’s finances.
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Calculation vs. conclusion of value – Which level of service is appropriate in litigation?
November / December 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 863
Abstract: Business valuation experts generally can be engaged to provide either a “conclusion of value” or a “calculation of value.” While these terms sound similar, this article explains the significant differences between these two types of engagements. A sidebar highlights a rare case in which a calculation of value was used to estimate the value of a medical practice for divorce purposes. Horne-Ballard v. Ballard, No. 2180194, Ala Civ. App., Jan. 24, 2020
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Estimating lost profits using the before-and-after method
September / October 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 449
Abstract: In Memorial Hermann Health System v. Gomez, a Texas appellate court upheld a compensatory and punitive damages award to a cardiovascular surgeon. The doctor’s employer raised several issues on appeal, including an argument that evidence of lost profits was legally insufficient. This article explains why the appellate court disagreed. Memorial Hermann Health System v. Gomez, 584 S.W. 3d 590 (Tex. App. 2019)
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Grieve v. Commissioner – Subsequent events: Tax Court rejects speculative assumption
September / October 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 579
Abstract: In a recent gift tax case, the U.S. Tax Court accepted the taxpayer’s value, which included discounts for lack of control and marketability. This article explains that the IRS erroneously based its value on speculative, improbable actions. Grieve v. Commissioner, TC Memo 2020-28 (March 2, 2020) Olson v. United States, 292 U.S. 246, 257 (1934)
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Factor current risks into the cost of capital
September / October 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 613
Abstract: Estimating discount rates is a complex task — even in the best of times. This article explains how today’s volatile economy has forced valuation experts to re-evaluate traditional methods of quantifying discount rates.
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How COVID-19 affects divorce cases – Pandemic creates unique business valuation challenges
September / October 2020
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 837
Abstract: The COVID-19 pandemic has had a devastating impact on the economy and created significant uncertainty. This article explains how the current environment presents unique challenges as couples in divorce proceedings strive to reach an equitable property division agreement. A sidebar explains the issue of double-dipping and summarizes a recent divorce case where an Ohio appellate court allowed double-dipping. Kim v. Kim, C.A. Nos. 28684, 29144 (Ohio Ct. App., January 8, 2020)