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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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Fairness Opinion

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 ...
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Litigation: Critical Need for Financial Advisor

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. ...
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Brand / Trade Name Value

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, ...
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Derivative Valuation

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 ...
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RIGHT OF PUBLICITY (Name and Likeness)

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 ...
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PURCHASE PRICE ALLOCATION ISSUES

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 ...
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HOW MUCH IS THAT IP IN THE WINDOW?

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 ...
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Profits Interests

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. ...
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ESOP Valuation Nuances

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 ...
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