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Showing 353–368 of 382 results
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Identify a qualified appraiser with these questions
July / August 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 782
Abstract: This article offers advice to help attorneys identify qualified valuation experts and facilitate questioning in deposition and at trial. It lists several points that can help determine whether an appraiser is qualified, including years of experience, percentage of time spent valuing businesses and professional business valuation credentials. The article suggests that obtaining clarification up front can help attorneys get the most from a valuator’s expertise and avoid costly mistakes.
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For what it’s worth — The issue of owners’ compensation
July / August 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1027
Abstract: One of the biggest expenses for private businesses is owners’ compensation. Value often is based on comparisons between a subject company and guideline companies. If owners are overcompensated compared with similar businesses, the subject company will be undervalued on a controlling basis — and vice versa — unless the valuator adjusts the company’s income stream. This article discusses the issues involved with owners’ compensation, including executive compensation in divorce cases, tax issues, the company’s industry and the general economy.
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Electronic discovery: Federal Rules meet the 21st century
July / August 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1087
Abstract: Most businesses create and retain information in some type of electronic format, which may include e-mails, spreadsheets, voice mails and accounting records. And all of this electronically stored information (ESI) could be relevant in a lawsuit. The federal judiciary’s Civil Rules Advisory Committee recently amended the Federal Rules of Civil Procedure (FRCP). The new rules, which took effect in December 2006 and govern ESI, provide litigants with a cost-effective, timely way to share data. This article looks at how valuation experts can help attorneys address such issues as potential sources of electronic data, control concerns, preferred formats for electronic documents, and ESI preservation and authentication. A sidebar outlines an 11-point checklist for authenticating electronic records.
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Joint appraisal: The power of one
May / June 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 454
Abstract: This brief article points out that a joint appraisal can be useful in some situations, including divorce, by facilitating information sharing to streamline the valuation process and minimize divergent opinions. In fact, some jurisdictions mandate the use of a joint appraiser when the marital estate includes a privately held business interest. The article notes the potential pitfalls, but suggests that using a joint appraiser can often save both money and time.
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Bridging the gap between public and private firms
May / June 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 708
Abstract: Transactions of public company shares can sometimes represent good benchmarks for appraisers valuing private businesses, but many privately held business owners wonder whether it’s even possible to compare small businesses with large, publicly traded corporations. While the two types of businesses differ significantly, experienced valuation professionals understand the differences — and how to account for them with well-thought-out, supportable adjustments. This article explains the distinctions between the two types of companies and how appraisers can use public market data as a resource to value even the smallest private company.
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Ready, set, go — How to ensure your valuation goes as planned
May / June 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 905
Abstract: Miscommunication and ambiguity early in the valuation process can be frustrating and costly later. This article presents some issues business owners and attorneys should discuss with prospective valuators, including the company’s entity type, size and industry classification code, the appropriate standard of value for the purpose, and what type of report format will best suit their needs. The article notes that it’s best to summarize the assignment’s scope and establish an understanding of the appraiser’s duties and responsibilities in an engagement letter up front.
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Can goodwill hold up in a bad economy?
May / June 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1126
Abstract: Privately owned companies can’t escape the effects of a slowed economy — for instance, the possibility of impaired values. Goodwill and other indefinite-lived (and long-lived) intangible assets may decline in value. Impaired values might require corrective action to conform with Generally Accepted Accounting Principles (GAAP). This article discusses several recent standards, including Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements, which provide guidelines for impairment testing. The article points out that valuators are often called in to handle these assignments because they are familiar with current standards and can add objective credibility to the process for auditors.
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How to evaluate a distressed business
March / April 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 381
Abstract: The tumultuous economy has taken its toll on many private businesses. Weaker companies may be liquidating assets to generate cash flow or even filing for bankruptcy, offering opportunities to stronger players. This brief article notes that even in these cases acquisition due diligence is extremely important to help potential buyers realistically assess the distressed business’s value.
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Valuing options: Are you up for the challenge?
March / April 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 668
Abstract: Employee stock options (ESOs) can be an effective way for companies to attract and retain key employees and are popular among startups and technology firms, which tend to be cash-poor but offer significant growth potential. But accounting for ESOs became more complicated when the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 123(R), which eliminated the intrinsic method of reporting ESOs. This article explains that now companies must use the fair value method, requiring ESO issuers to enlist valuation expertise.
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Make no mistakes — the IRS means business
March / April 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1062
Abstract: As part of the Pension Protection Act of 2006 (PPA), stiffer penalties await preparers, appraisers and taxpayers who misstate value or sidestep the appraisal process for tax purposes. This article discusses a recent court case that illustrates how overvaluation can prove costly in charitable contribution cases. The article also explains several new rules PPA introduced that revised the thresholds for substantial and gross valuation misstatements, discussing the potential implications for taxpayers. Case citation: Bergquist et al v. Commissioner, 131 T.C. No. 2, July 22, 2008.
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Successful succession planning starts today
March / April 2009
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 1134
Abstract: U.S. companies currently face an economic crisis unparalleled since the Great Depression: rising energy and commodity prices, increasingly stringent lending requirements, volatile stock market values and a general sense of uncertainty. This article points out that, while many businesses are worth less today than under more favorable market conditions, private business owners now can gift a higher percentage of the business to heirs without incurring federal gift taxes or, possibly, estate taxes. The article notes that this is a good time to start, or revisit, succession plans and lists several ways valuators can help.
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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.
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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.
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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.
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A closer look at rebuttal reports
November / December 2008
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 429
Abstract: Valuators don’t generate a full-blown valuation report for every valuation assignment. Sometimes a rebuttal report will suffice. This brief article summarizes a few scenarios in which a rebuttal report might come in handy, including in unearthing discrepancies and preparing for trial.
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Valuators can help smooth the rocky terrain of divorce
November / December 2008
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 968
Abstract: Early involvement of financial experts in marital dissolution matters facilitates the discovery process. It encourages information sharing and helps resolve financial settlements. This article uses a fictional case study to illustrate the ways financial experts can help throughout the divorce process from discovery to settlement.