in Business Valuations The advent of ChatGPT and its other AI apps has come to the forefront. This is potentially disruptive technology that will raise uncomfortable issues, but also open the door to innovation and new industries. AI will impact how business valuations are performed and the role of accredited professionals. This article discusses how AI and machine learning could impact the business valuati ...

(Part IV) To look to the future of the BV profession, we must explore the relevant dynamics within the industry. That starts with looking to our past to see what events and milestones brought us to where we are today, followed by ascertaining the economic and demographic trends leading us into the future, and culminating with identifying those trends which will have the greatest impact upon the profession. ...

Structured, Clear, and Well-Researched and Reasoned In a litigation setting, a well-written business valuation report can position your conclusion of value as credible. When completed for tax purposes, a well-written business valuation report can help avoid an IRS challenge. In any circumstances, a well-written business valuation report can provide the business owner with ways to increase cash flow and redu ...

Part Two in a Series Addressing Advances in Forensic Accounting and Financial Forensics The author of this series of articles is co-founder of Valid8 Financial Forensics Software, a Seattle, WA and Boulder, CO-based professional service provider. This second article, and those in the forthcoming series, set forth techniques used to investigate financial fraud allegations and the reliance and value of artifi ...

The “Least Bad” Method Determining a discount for lack of control (DLOC) is one of the more challenging tasks facing business valuators. The reason for this is the methodologies used each have weaknesses. In this article, David Goodman looks at two methods and explains the difficulties in relying on them. This is a case where business appraisers may need to rely on the “least bad” method … a term of art. De ...

An Interview with Zain Kalson, founder of Etheia As part of a broader dialogue around business valuations in the context of divorce, this article features an interview conducted by Andrew Thompson, Esq., with Zain Kalson, the founder of Etheia. The article discusses trends regarding how advanced data analytics are helping attorneys and experts sort through hidden assets, analyze expenses, and improve outcom ...

Tests of Reasonableness Business appraisers use tests that ask whether decisions made are legitimate and designed to remedy a certain issue under the circumstances. These tests are commonly referred to in the valuation literature as tests of reasonableness. Several methods have been suggested and employed (e.g., purchase justification test), but limited literature speaks to the use of a test of reasonablene ...

Evaluation of Your Priorities Most BVFLS practitioners happen to have fallen into this line of work by accident or chance. How can we prioritize and also find meaning and purpose in our profession. Rod Burkert shares his views on this subject. Henry David Thoreau said, “The price of anything is the amount of life you exchange for it.” This made me think, “How much of our lives are we exchanging for the pric ...

(Part III) To look to the future of the BV profession, we must explore the relevant dynamics within the industry. That starts with looking to our past to see what events and milestones brought us to where we are today, followed by ascertaining the economic and demographic trends leading us into the future, and culminating with identifying those trends which will have the greatest impact upon the profession. ...

Theory to Practice VPS StraightTalk Webinar, June 15, 2023 This article summarizes key takeaways from the June 15, 2023, VPS StraightTalk Webinar presentation co-led by R. James Alerding, CPA, ABV and Carli D. Lehr, CPA, CVA, CSEP. The speakers discussed how to differentiate between a projection and forecast, the importance of developing a reliable cash flow or projection evaluation of specific risk to the ...

A Sampling of What Construction Law Attorneys Say They Expect from Experts This article provides a summary of what attorneys, who are members of the Minnesota construction law section, heard at a recent CLE regarding what attorneys expect from experts. On June 13, 2023, Michael Gregory attended the Minnesota State Bar Association Alternative Dispute Resolution Section regarding the topic of “Solve the Probl ...

FRE 702—Challenging the Expert Witness: White Buffalo Environmental, Inc. v. Hungry Horse, LLC In modern litigation, expert witnesses have become nearly indispensable. As a result, motions to preclude those experts from testifying are almost inevitable. With the forthcoming amendment to Federal Rule of Evidence 702 clarifying both which party bears the burden of proof on challenging expert testimony and the ...

Currency Investment Scams Step aside e-mail compromises and romance scams. Make way for the crypto investment scam, the newest in an ever-changing sea of schemes and scams available on the World Wide Web to minimize your life savings in as little as a few weeks. This article is a refresher for traditional indicators beyond the “too good to be true” mantra and will detail the slight modifications occurring w ...

The Use of Hypotheticals to Illustrate What Is Known or Knowable In valuation, the concept of “known or knowable” refers to events or circumstances that are (or are not) known or able to be known as of a specific date. This concept is important in the valuation process because every valuation is performed as of a particular point in time, which is referred to as the valuation date. Because the valuation pro ...

Reasons for the Recommendation and Responses On March 15, 2023, the Medicare Payment Advisory Commission (MedPAC) published its annual Report to Congress regarding the status of the Medicare program. Among other areas, the report detailed policy recommendations for the Medicare fee-for-service (FFS) payment systems, the Medicare Advantage (MA) program, and the Medicare prescription drug program (Medicare Pa ...

Steps to Immediately Take Before Focusing on Marketing In this month’s article, Rod Burkert details six positioning and marketing blunders too many appraisers are making with respect to building and growing a BVFLS practice. I just passed the seven-year milestone of launching my coaching career. And I have to say (as someone else has previously said), “I know a thing or two because I have seen a thing or tw ...

An Unimpeachable Cure for Delusive Exactness This 15th article of the unimpeachable neutrality series discusses the pathology, symptoms, and treatment for a bad case of delusive exactness. Delusive exactness affects thousands of financial experts every day and can be fatal to a case if left untreated. On balance, delusive exactness, as described herein, refers to the testimonial delirium exhibited by a fina ...

Post May 23, 2023, Developments Regarding Telehealth and Waivers Regardless of whether certain COVID-19 era waivers and flexibilities are made permanent, providers will be hard pressed to move away from what has become common practice over the past three years. A Premier Inc. survey of hospitals and non-acute providers found that 69% of respondents were still leveraging these waivers and flexibilities as of ...

A Primer on the Tax Law Issues Years ago, “golden parachute” payments were fully tax deductible by the employer if they were “ordinary and necessary” business expenses under Internal Revenue Code § 162. However, due to controversy over large executive pay packages, the Tax Reform Act of 1984 added § 280G to the Internal Revenue Code. This article discusses planning and tax deductibility issues under the cur ...

(Part II) To look to the future of the BV profession, we must explore the relevant dynamics within the industry. That starts with looking to our past to see what events and milestones brought us to where we are today, followed by ascertaining the economic and demographic trends leading us into the future, and culminating with identifying those trends which will have the greatest impact upon the profession. ...