Beyond the Numbers eNewsletter 


November 19, 2015

What Professional Standards to Apply to Business Valuations
When valuing a business, experts use different standards. An appraisal report should clearly state which standards were followed. Here's a rundown of what is required of appraisers, including standards published by The Appraisal Foundation, the AICPA, and the National Association of Certified Valuators and Analysts.

Fraud Awareness
When was the last time you recommended to your clients that they pause to think about fraud? Here are some simple ways you can beef up your anti-fraud efforts — and a look at potential problems with the chip cards that banks have been issuing to protect against counterfeiting frauds. 


October 27, 2015

Financial Forecasts and Projections in Litigation
In litigation, an attorney may need a financial projection or forecast from an expert. This could be used for business valuation purposes in a sale, divorce or estate -- or for other purposes. Here is an explanation of the difference between a forecast and a projection and some of the issues involved when an expert performs the service as part of a legal matter.

Timing is Everything: How to Handle Subsequent Events in Valuation
Valuations are prepared as of a specific date.  But should appraisers consider events that occur after the valuation date that help determine or impact value?  Without consensus among the IRS, professional standards and legal precedent, appraisers need to rely on professional judgement and be ready to defend their handling of subsequent event in retrospective valuations.

 

September 18, 2015

How Purchase Offers Factor into the Valuation Equation
Under the market approach, a company's value is derived from sales of similar businesses. But what if the subject company itself has received a purchase offer from a third party? Although appraisers should consider written bids and less formal offers when valuing a business, the weight these indicators deserve depends on the facts and circumstances of the case.

How Industry Fits Into the Valuation Puzzle
Industry risks and trends are important considerations when managing or valuing a private business. This article explains how appraisers measure industry risks, why clients should leverage their appraisals to implement industry best practices and what some of the riskiest industries in today's marketplace are.

 

July 21, 2015

Business Valuation Approaches As Easy As 1-2-3
Business valuation may seem daunting, but essentially it comes down to three techniques: The asset, income and market approaches. Which will be appropriate when valuing your business? That's a complicated question that's best left to the experts. Here, we discuss the ins and outs of these approaches. 

 

June 16, 2015

A Closer Look at the Market Approach
Real world transactions provide some of the most objective sources of appraisal evidence. But applying the market approach isn't always as easy as it appears. Can public stock really be used to value private firms? Which selection criteria determines a reliable comparable? Experienced valuation professionals understand the ins and outs of the market approach. 

The Limits of a Successful Daubert Challenge
Challenges against expert witnesses in stock valuation cases have found greater success than ever before as a result of the 1993 Daubert case. Click "Full Article" to read about the factors involved in a Daubert dispute, along with a case before the U.S. Court of Federal Claims that helps clarify the limits of a challenge. 

 

May 19, 2015

Valuation Issues in Divorce
In some ways, valuing a closely held business in a divorce case is like the Wild West. That's because the cases are subject to the laws and rules of particular states or jurisdictions. The rules are complex and depend not just on state law, but on whether the business is a sole proprietorship, partnership, S corporation, C corporation or LLC. This article explains some of the issues involved. 

Proving Damages When Intellectual Property is Stolen
In cases of patent infringement, the patent owner may want to sue for lost profits. In other words, the amount of profits the patent owner would have earned if the infringement had not occurred. This requires an analysis of certain criteria. Click "Full Article" for an explanation of four factors courts often use in determining awards involving lost profits after patent infringement.

Miles Earns CPA Credential
Congratulations to staff analyst Johnathan Miles who earned the Certified Public Accountant (CPA) designation passing all four parts of the Uniform Certified Public Accounting (CPA) exam and fulfilling the work experience requirement. 


May 5, 2015

Business Valuation - Valuations in Shareholder Disputes
|In today's complex business world, shareholder disputes are common. They can be divisive, expensive, last a long time -- and arise without warning. This article describes the different types of disputes, including those related to shareholder agreements, and provides considerations to help ensure you are protected by proactive planning.

A Case Study of Damages Involving Noncompetes (Litigation)
What's the proper method for determining damages when executives with noncompete agreements leave their companies and take valuable customers with them? The determination must be made using actual information from the companies -- or by looking at similar companies. You can't compare apples and oranges. This article provides an in-depth case study that explores the alternatives.