VV

Showing 321–336 of 378 results

  • Would you, should you, reuse an appraisal?

    September / October 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 471

    Abstract: A business appraisal provides a snapshot of a company’s value on a specific date and for a specific purpose. Although it may be tempting to reuse old valuations to save time and money, recycled valuations may cause more problems than they solve. This article uses a hypothetical case study to illustrate the potential drawbacks of reusing an old appraisal for a different purpose.

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  • Estate of Black: Another notch in taxpayers’ FLP belts

    September / October 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 599

    Abstract: Family limited partnerships (FLPs) are proven estate planning tools. But the IRS sometimes attacks a partnership’s discounts or business purpose under Internal Revenue Code Section 2036, “Transfers with retained life estate.” This article notes the importance of proper FLP structure, explaining that when the IRS succeeds in proving that the donor or decedent retains ongoing economic benefit — either express or implied — it assesses gift and estate taxes for the full value of the partnership’s underlying assets without allowing discounts for lack of control and marketability.

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  • Great expectations: Finding the value of startups

    September / October 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 791

    Abstract: It’s difficult to value a startup business when it has no track record and has never generated positive cash flow — or even revenues. Without history to lead the way, startups often derive value from exceptional growth expectations. This article explains that valuators know how to spot the clues, including management style, business type, market size, potential growth opportunities and development stage, which can help them more accurately estimate future performance. A brief sidebar explains that employee stock options (ESOs) can be an effective way for startup companies to attract and retain key employees.

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  • Transaction databases can be powerful tools

    September / October 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1007

    Abstract: Appraisers use the guideline merger and acquisition method, a subset of the market approach, to derive a company’s value using samples of comparables (or guideline companies). To do so, they frequently refer to several private transaction databases to select appropriate comparable transactions. This article lists some of these database sources and points out some of their pros and cons. In addition to noting several criteria valuators use to collect a manageable sample of strong comparables, the article discusses how valuators calculate appropriate pricing multiples. A sidebar looks at other factors they typically consider.

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  • Take control of subsequent events

    July / August 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 390

    Abstract: How do valuators handle an event that occurs after the valuation date, but before the report is published? Usually valuators consider only circumstances and events that exist or occur before and up to the valuation date. But subsequent events that were “known, knowable or foreseeable” on the valuation date are fair game. This brief article looks at Estate of Noble, a Tax Court case that draws an important distinction between subsequent events that affect value and those that provide evidence of value.

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  • Solving the puzzle — How to find the right-size discount or premium

    July / August 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 668

    Abstract: Valuation discounts and premiums can be difficult pieces to fit into the valuation puzzle. They may be somewhat subjective, and valuators may use methods that preclude the need to subtract discounts — or add premiums. This article explains how discounts and premiums relate to marketability and investor control and how valuators typically go about finding and supporting them.

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  • Exit stage right — A good exit strategy is worth applauding

    July / August 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 731

    Abstract: In these uncertain economic times, having a sound exit strategy — including a plan for passing on responsibility for running the company, transferring ownership and extracting money — can be a great help to those who take over the business. The optimal exit plan depends not only on the transfer scenario, but also on the owner’s personal needs and objectives. This article sets forth some common exit strategies and their pros and cons.

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  • No question: Onsite interviews provide value

    July / August 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 894

    Abstract: While financial statements, tax returns and Web sites provide some insight into value, the valuator gets the most complete picture by also physically touring the business’s facilities and speaking with managers face-to-face. This article discusses the areas often covered in an interview, which may include corporate culture and strategy, marketing and sales, and internal controls and governance. The article cites several recent cases that illustrate the importance of onsite interviews in generating credible value conclusions that stand up in court.

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  • Guidance issued on valuation of partial interests

    May / June 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 524

    Abstract: After a six-year development period, the American Society of Appraisers (ASA) recently added a new procedural guideline to its Business Valuation Standards: PG-2 — Valuation of Partial Ownership Interests. Although not a binding standard, PG-2 offers valuable guidance to ASA members and other business valuators on this difficult and often controversial subject. This article looks at some of the highlights.

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  • Lucent sheds light on patent infringement damages

    May / June 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 497

    Abstract: Courts are generally loath to disturb a jury’s verdict on damages. But an appeals court threw out a $350 million patent infringement award that wasn’t supported by substantial evidence. This case illustrates the need for detailed expert testimony, which will establish credible evidentiary facts and conclusions and, thus, support a claim for patent infringement damages.

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  • What’s behind the veil? — Digging for the truth in alter-ego cases

    May / June 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 740

    Abstract: When a plaintiff can’t collect a judgment from a corporation and seeks to obtain it from the corporation’s owners, it may try to show that the corporation and its shareholders lack separate identities — that is, the corporation is the owners’ alter ego. Key factors in determining an alter-ego relationship include not only this lack of separateness, but also financial dependence of the corporation upon its shareholders or parent, and undue influence upon a corporation.

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  • Struggling economy presents business valuation challenges

    May / June 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1046

    Abstract: In bad times, appraisers may face a disconnect between the income and market approaches, creating a wide gap between valuations. The challenge becomes reconciling these differences. This article explains how to approach valuation for both profitable and distressed companies, and notes that the purpose of a business valuation can have a big impact on the valuation methods that are used. A sidebar looks at one case in which a court rejected the uses of the discounted cash flow method by both the creditors’ and the debtors’ experts.

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  • Tiered valuation discounts: How low can you go?

    March / April 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 353

    Abstract: Valuation discounts can substantially lower the fair market value of gifted business interests. But business interest owners often inquire as to whether additional discounts apply when multiple layers of ownership exist. The answer is, maybe — if each entity exists for a bona fide business purpose. This brief article uses a landmark case, Astleford v. Commissioner, to examine the ramifications of tiered valuation discounts.

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  • Fine-tuning the value estimate — The importance of valuation adjustments

    March / April 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 736

    Abstract: An appraiser often makes adjustments to normalize companies’ earnings, removing all unusual, nonrecurring events from a company’s financial statements to reveal a clearer picture of the company’s normal operations. But what is normal? It depends. This article looks at the various adjustments an appraiser might make to achieve the appropriate basis of value.

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  • Rules of thumb are no substitute for the real

    March / April 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 791

    Abstract: Rules of thumb are simplified formulas that may be published in trade journals or passed along by word of mouth. These equations vary from industry to industry, and their simplicity can be appealing to business owners. But it is that very simplicity that can cause problems. This article looks at the potential pitfalls of using rules of thumb to determine the value of a business interest.

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  • Economic bust, litigation boom

    March / April 2010
    Newsletter: Viewpoint on Value

    Price: $225.00, Subscriber Price: $157.50

    Word count: 902

    Abstract: The sluggish economy might not be the only scapegoat for lackluster business performance. Civil wrongdoings, such as breach of contract or negligence, also cause companies to lose money. This article explains how a financial expert uses the evidence to determine the appropriate damages theory to account for loss in a damages case. The article mentions several factors the expert considers, including financial projections, comparable data, and damages duration. It also lists several accepted methods for quantifying economic damages.

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