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FAIRNESS OPINION: IS IT FAIR?

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 ...
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VALUATION SERVICES FOR NON-PROFIT INSTITUTIONS

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 ...
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ROYALTY ANALYSIS

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 ...
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CHARITABLE CONTRIBUTIONS

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 ...
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Business Valuation Terms Need Restructuring Based on Value Drivers

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. ...
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DO CLIENTS KNOW WHAT'S IN A REPORT?

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 ...
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NOT ALL VALUATIONS ARE ALIKE

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 ...
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STOCK OPTIONS BACK-SOLVE METHOD

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 ...
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Q1 TMG News

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 ...
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VALUATION EXPERTISE IN LITIGATION

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 ...
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PRIVATE EQUITY

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 ...
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Personal Goodwill

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 ...
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Internal Rate of Return - IRR

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 ...
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WHEN IS A VALUATOR APPRAISER AN EXPERT?

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 ...
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UNDERSTATED BALANCE SHEETS

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 ...
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TRANSFER PRICING 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 ...
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WHAT'S IN A BUSINESS VALUATION?

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 ...
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COST SEGREGATION PITFALLS

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 ...
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HOW TO HIRE AN APPRAISER

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 ...
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409A VALUATIONS

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. ...
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WHEN IS EXPERTISE IMPORTANT?

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 ...
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Litigation

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 ...
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TAX ACT 2017 - More Cost Segregation Benefits

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 ...
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Trademark Valuation

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 ...
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New Tax Act

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 ...
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