The Mentor Group Blog
Posted on Sep 1, 2020
Even in "normal" times, business valuation is an exercise that is part quantitative and part qualitative. Only after years of practicing is the valuator competent enough to know which ...
Continue reading "BUSINESS VALUATION DURING COVID" »
Posted on Aug 10, 2020
How has COVID-19 impacted real property values? The rather "obvious" conclusion might be that value is depressed. No so fast. It depends on several factors, not all of which are obvious. The ...
Continue reading "REAL ESTATE VALUES IN COVID ERA" »
Posted on Jul 1, 2020
The Tax Cuts and Jobs Act of 2017 contained an error. It did not allow for new tenant or interior improvements to be classed as 15-year property. Rather, these costs were removed from the 15-year ...
Continue reading "COST SEGREGATION - QUALIFIED IMPROVEMENT PROPERTY" »
Posted on Jun 1, 2020
There are many forms of debt. In fact, other than common stock, all other forms of capital are basically debt. By definition, debt carries an interest component. Some debt interest is paid on a ...
Continue reading "WHEN IS DEBT NOT REALLY DEBT?" »
Posted on May 1, 2020
Can you value a business without appraising the underlying assts? The answer is yes. In fact, most business valuations are not all premised upon any specific asset values. Think of a business or ...
Continue reading "BUSINESS VALUE vs. UNDERLYING ASSETS" »
Posted on Apr 1, 2020
In the most recent gift tax case, the experts on both sides applied a C corporation tax rate to the companies S corporation earnings. Initially, the IRS (Kress v. U.S.) claimed that the taxpayers paid ...
Continue reading "TAX AFFECTING S CORPS" »
Posted on Mar 1, 2020
What is "stigma" relative to real estate and how can you deal with it? Stigma, usually expressed as an albatross on the property which lowers its value, is often the subject of a litigation ...
Continue reading "REAL ESTATE: DEALING WITH PROPERTY STIGMA" »
Posted on Feb 1, 2020
For the most part, broker opinions of real estate value can be useful as a gauge or to estimate a value range. But they rarely substitute for an actual appraisal At least some of the reasons for the ...
Continue reading "BROKER OPINIONS OF REAL ESTATE VALUE" »
Posted on Jan 1, 2020
The public, including other savvy professional service providers, is acutely unaware of the difference discount valuation reports issues by supposedly competent valuators. For the most part, these ...
Continue reading "WIDE VARIANCE IN DISCOUNT VALUATIONS" »
Posted on Dec 1, 2019
The headline reflects the most common corporate conversion, C to S. At the same time, the prevailing tax consequences may also apply to C conversions to LLCs and S corporations buying assets from a C ...
Continue reading "CONVERSION OF C TO S CORPORATION" »
Posted on Nov 1, 2019
What is the definition of fair? It is an amorphous term, and subject to the perspective of each person. Thus, I contend that a Fairness Opinion is better termed a Reasonableness Opinion. The Fairness ...
Continue reading "FAIRNESS OPINION: IS IT FAIR?" »
Posted on Oct 1, 2019
The range (type) of valuation and appraisal services for non-profit entities is similar to those provided the For Profit sector. Depending upon the specific requirements, businesses and business ...
Continue reading "VALUATION SERVICES FOR NON-PROFIT INSTITUTIONS" »
Posted on Sep 1, 2019
Royalty analyses are usually required for at least the following situations: As part of an overall valuation of an intellectual asset or IP. As part of a licensing agreement whereby the licensor ...
Continue reading "ROYALTY ANALYSIS" »
Posted on Aug 1, 2019
The latest IRS regulations were promulgated on July 30, 2018. These included detailed definitions of a qualified appraisal and a qualified appraiser. The appraisal must support the value of a stock or ...
Continue reading "CHARITABLE CONTRIBUTIONS" »
Posted on Jul 24, 2019
As a relatively young profession, we are just beginning a transition beyond our original business valuation pioneers. These leaders shaped a plethora of theories and court precedents into a vocation. ...
Continue reading "Business Valuation Terms Need Restructuring Based on Value Drivers" »
Posted on Jul 1, 2019
Probably not. Most often, the client only looks at the page(s) concluding the value. Our process for conducting an appraisal, valuation or cost segregation analysis is specifically designed to fully ...
Continue reading "DO CLIENTS KNOW WHAT'S IN A REPORT?" »
Posted on Jun 1, 2019
Why, you ask, aren't all valuations for the same business or asset alike? How can they differ s much? There are reasons for divergence of opinion. And they usually involve one valuator being an ...
Continue reading "NOT ALL VALUATIONS ARE ALIKE" »
Posted on May 1, 2019
For startups and pre-revenue companies, the most accepted means to estimate business enterprise value is known as the back-solve method. This approach satisfies the IRS requirement for valuing common ...
Continue reading "STOCK OPTIONS BACK-SOLVE METHOD" »
Posted on Apr 1, 2019
Buoyed by a pulsating economy, The Mentor Group experienced strong year over year growth in revenue for nearly all service components. Some highlights follow: Valuation of partner carried interests ...
Continue reading "Q1 TMG News" »
Posted on Apr 1, 2019
Recently, the Fifth Circuit Court decision in Mansour v. Youtoo Media provided a clearer roadmap for compliance with the "reasonably certain" rule. Heretofore, many courts have rejected the ...
Continue reading "VALUATION EXPERTISE IN LITIGATION" »
Posted on Mar 1, 2019
Each Private Equity (PE) firm is unique in the following ways: How they construct and raise funds, manage that capital, and make investments, usually in going business concerns. Their criteria for ...
Continue reading "PRIVATE EQUITY" »
Posted on Feb 1, 2019
We have encountered more situations where clients who have sold a business or assets have claimed a portion of the purchase price as personal goodwill. The tax savings for the individual assigned the ...
Continue reading "Personal Goodwill" »
Posted on Jan 1, 2019
The internal rate of return (IRR) is a capital budgeting metric. IRR measures the profitability of potential investments. As used, the IRR makes the net present value of cash flows for a particular ...
Continue reading "Internal Rate of Return - IRR" »
Posted on Dec 1, 2018
A valuator (business or IP) or appraiser (hard asset: real estate, equipment or inventory) is considered an "expert" when one or more of the following occurs: He is qualified by a court of ...
Continue reading "WHEN IS A VALUATOR APPRAISER AN EXPERT?" »
Posted on Nov 1, 2018
Organically grown IP usually is not reflected on a company balance sheet. The reason is simple: these costs to develop and maintain the IP (software, patent, etc.) are expensed. The only way IP is ...
Continue reading "UNDERSTATED BALANCE SHEETS" »