The Mentor Group Blog
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" »
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" »