The Mentor Group Blog
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" »
Posted on Oct 1, 2018
What is different about transfer pricing (IRC Section 482) in 2018 versus prior years? The primary differences are the following: The advent of the 2017 Tax Act is expected to place additional IRS ...
Continue reading "TRANSFER PRICING 2018" »
Posted on Sep 1, 2018
The best answer is "no one knows." Buyers of business valuations (b.v.) beware. Even many of the better trusted advisors are not versed enough to critique a b.v. Perhaps the ones who know ...
Continue reading "WHAT'S IN A BUSINESS VALUATION?" »
Posted on Aug 1, 2018
The awareness of using cost segregation to maximize tax depreciation has significantly increased. An added benefit was created by The Tax Act, allowing taxpayers to expense personal property (bonus ...
Continue reading "COST SEGREGATION PITFALLS" »
Posted on Jul 1, 2018
That is the $64,000 question. To garner potential appraisal candidates, most business people ask their trusted advisors for names. But is that the most efficient approach? We suggest that this process ...
Continue reading "HOW TO HIRE AN APPRAISER" »
Posted on Jun 1, 2018
The business valuation provided to satisfy the IRC 409A provisions is viewed by many recipients as a fungible product. That is to say that too many valuators treat the bidding process as a commodity. ...
Continue reading "409A VALUATIONS" »
Posted on May 1, 2018
Always. However, the referring public does not always concur. During the Great Recession (2008-2017), we were referred into numerous prospective valuations opportunities, along with a cadre of lower ...
Continue reading "WHEN IS EXPERTISE IMPORTANT?" »
Posted on Apr 1, 2018
The environment for litigation valuations has increased in parallel with the improved economy. That makes sense, as plaintiffs have more to spend on lawyers and the potential payoffs are magnified. We ...
Continue reading "Litigation" »
Posted on Mar 1, 2018
The Tax Act of 2017 (affecting 2018 and years beyond) provides even more significant benefits to the already positive attributes of cost segregation. A properly prepared engineering analysis of ...
Continue reading "TAX ACT 2017 - More Cost Segregation Benefits" »
Posted on Feb 1, 2018
A trademark is "a word, phrase, symbol and/or design that identifies and distinguishes the source of the goods of one party from those of another." [1] While the above definition is fairly ...
Continue reading "Trademark Valuation" »
Posted on Jan 1, 2018
The New Tax Act will definitely impact the use of valuation services. We strongly suggest each person and company coordinate with their tax advisors, since the law is subject to varying ...
Continue reading "New Tax Act" »
Posted on Dec 1, 2017
In prior years, fairness opinions were primarily applicable for publicly held companies. Today, private transactions involving disparate and potentially conflicted parties are often accompanied by ...
Continue reading "Fairness Opinion" »
Posted on Nov 1, 2017
Litigation matters are almost always settled on economic analyses/positions. Too often, they fester and proceed based on emotional, usually irrational, behavior on the part of one or both litigants. ...
Continue reading "Litigation: Critical Need for Financial Advisor" »
Posted on Oct 1, 2017
Can a brand or trade name have value apart from the business? Yes. However, the ongoing business, if profitable, will enhance the brand value and be enhanced by the brand. For the profitable business, ...
Continue reading "Brand / Trade Name Value" »
Posted on Sep 1, 2017
In financial terms, the derivative contract derives its value from the performance of an underlying property. This property – asset, index, or interest rate – is called the ...
Continue reading "Derivative Valuation" »
Posted on Aug 1, 2017
The intellectual property called Right of Publicity (RP), is also known as "Name and Likeness" "Persona," and "Personality Rights." Any and all of these terms encompass ...
Continue reading "RIGHT OF PUBLICITY (Name and Likeness)" »
Posted on Jul 1, 2017
Purchase Price Allocation (PPA) is triggered by an acquisition. The purchase price is allocated to the assets and liabilities included in the transaction. Buyers and sellers often have different ...
Continue reading "PURCHASE PRICE ALLOCATION ISSUES" »
Posted on Jun 1, 2017
With due attribution to an old song (Doggie in the Window), for most companies there is no IP value in the window, or on the Balance Sheet. The reason is simple: costs to develop and protect the IP ...
Continue reading "HOW MUCH IS THAT IP IN THE WINDOW?" »
Posted on May 1, 2017
Special equity compensation known as profits interests (PI) are only issued by Limited Liability Companies (LLCs). They provide for a share of profit in the company after a specific point in time. ...
Continue reading "Profits Interests" »
Posted on Apr 1, 2017
What makes ESOP valuations unique from other business valuations? The discussion below highlights some of these nuances. ESOP Advantages Employee Stock Ownership Plan is a qualified retirement plan ...
Continue reading "ESOP Valuation Nuances" »
Posted on Mar 1, 2017
A solvency opinion (valuation analysis) is required by sellers and new creditors to a leveraged transaction involving a company recapitalization. Due to concerns about fraudulent conveyance, parties ...
Continue reading "Solvency Opinion" »