And the Cockroach Theory The recent bankruptcies of First Brands, a large auto parts supplier, and Tricolor, a car dealership chain, have renewed concerns about lending practices more than two years after the collapse of Silicon Valley Bank. That earlier failure was driven by rising interest rates that reduced the value of its bond holdings and caused panic across the banking sector. Appraisers may regard these as isolated instances rather than evidence of a broader financial crisis. Either way, the author proposes that business valuation professionals should consider these issues when completing current business valuation engagements. Introduction MSN[1] recently quoted…
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Engaging a Prospective Attorney for Referrals In this article, the author shares what “pick-up line” works best for him to get attorneys to refer work. I have a “pick-up line” that works almost every time with new referral sources, particularly attorneys. Want to hear what it is? Before I tell you, let’s first talk about what referral sources, like attorneys, are up against so you can see why this pick-up line works. The Resistance You Must Overcome You’ve heard about the know, like, and trust thing, right? That people do business with people they know, like, and trust. Look at…
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In Anticipation of Going to Market Valuations performed for mergers and acquisitions are different than most of the traditional valuation work. The author of this article shares the standard of value used in these engagements, the due diligence conducted, and merits of preparing a calculation report in anticipation of going to market. Valuations performed for mergers and acquisitions (M&A) are different than most of the traditional valuation work we handle on a day-to-day basis. One of the biggest differences is the standard of value used. Typically, the valuation professional will use investment value rather than fair market value. NACVA’s definition…
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How AI is Reshaping Litigation for Better and Worse AI remains a flawed practice companion. In addition to the possibility of hallucinated case citations and incorrect legal analysis, the use of AI introduces data privacy concerns and risks misadvising individuals due to overly generalized AI conclusions. In this article, the author addresses the following: Does the use of AI in litigation represent true artificial intelligence, or is it artificial interference preventing a just outcome? Artificial intelligence (AI) is rapidly transforming the modern-day legal landscape, offering tools for research, drafting, fact development, document review, expert services, jury selection, and even predicting…
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Examining Available Sale Options and Steps to Maximize the Financial Outcome (Part II of II) Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This second part of the comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. Read Part I here. Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale…
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What Might an Investigation Look Like The First Brands Chapter 11 filing, the questions raised regarding its use of off-balance sheet financing and its new leadership, is setting the stage for an investigation. In this article, the author shares what may ensue at this early stage of the controversy. Introduction Automotive News[1] reported that, on October 13, 2025, First Brands reported its founder, Patrick James, had stepped down as CEO and will be succeeded by Chief Restructuring Officer, Charles Moore, on an interim basis, as the auto parts maker advances its Chapter 11 bankruptcy process. On the same day, the…
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Examining Available Sale Options and Steps to Maximize the Financial Outcome (Part I of II) Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This two-part comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. I have been involved in buying…
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Don’t Say That! What is protected communications in one jurisdiction might be discoverable in another. Yet, many expert witnesses draft e-mails as if their words will never see the light of a courtroom projector. The author shares what she has experienced and makes suggestions. Words live forever, especially when they are typed into e-mails during litigation. As an expert witness, your casual Monday morning thoughts could become Thursday’s courtroom exhibit, projected on a screen for all to see. The discoverability rules governing expert communications vary significantly across jurisdictions.[1] What is protected in an arbitration in Michigan might be fair game…
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How Exactly Did $2.3 Billion Vanish? First Brands Group Holdings has filed for Chapter 11 bankruptcy, capping weeks of turmoil sparked by creditor concern over the auto-supplier’s use of opaque off-balance sheet financing. The U.S. Department of Justice has launched an investigation into the circumstances leading to this company’s collapse. In late September 2025, U.S. auto parts maker, First Brands, filed for bankruptcy relief. A key issue that is under investigation is a $2 billion factoring arrangement. The U.S. Department of Justice has launched an investigation into the circumstances leading to this company’s collapse. This article raises several initial questions…
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Updated Valuation Guidance for 7(a) and 504 Loans (Effective June 1, 2025) SOP 50 10 8 provides specific thresholds and scenarios dictating what type of valuation is required and by whom for 7(a) and 504 loans. Valuation professionals including CVAs, CPAs, and other appraisers should understand these guidelines to ensure their appraisals meet SBA standards. All requirements cited here are drawn directly from this SOP. Effective June 1, 2025, the U.S. Small Business Administration’s (SBA) SOP 50 10 8 (Lender and Development Company Loan Programs), brought important updates and clarifications to business valuation requirements for 7(a) and 504 loan programs.…
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Increases Payments Earlier this year, the CMS released its proposed MPFS for 2026. In addition to the agency’s suggested increase to physician payments, the proposed rule also announces a new payment model and more telehealth flexibilities. This article summarizes the proposed fee schedule changes. On July 14, 2025, the Centers for Medicare and Medicaid Services (CMS) released its proposed Medicare Physician Fee Schedule (MPFS) for calendar year (CY) 2026. In addition to the agency’s suggested increase to physician payments, the proposed rule also announces a new payment model and more telehealth flexibilities.[1] According to CMS, the “proposed rule is one…
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Thoughts on Thought Leadership When an attorney, banker, CPA, or wealth planner refers business to us, it can feel like we should refer business back to them. But we can’t refer to everyone because we likely don’t have that many referrals to make. The author provides insight on what it takes to become the recommended expert vis-à-vis a referral. When an attorney, banker, CPA, or wealth planner refers business to us, it can feel like we should refer business back to them (because, surely, everyone is keeping score). And we do that when we can. But we can’t refer to…
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And How to Maximize It What truly influences value is the quality, consistency, and transferability of the earnings. Buyers are not solely purchasing a history of profitability; buyers are seeking future income that is sustainable and independent of the current owner’s direct involvement. Most business owners do not know what their business is worth. In many cases, they have never measured it in a formal or objective manner. Yet for most entrepreneurs, their business represents their single largest asset. It may be central to their retirement plan, their family’s financial well-being, or even their legacy. Despite its significance, the topic…
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Pre-Sale Accounting Best Practices for Buyers and Sellers In today’s market, it is especially important that prospective acquirers of emerging companies understand exactly what they are purchasing and how to allocate the purchase price among the assets acquired and liabilities assumed. This article discusses the importance of quality of earnings and impact on the acquisition price. As buyers tighten their purse strings in a volatile economy, parties on both sides of startup M&A deals must ensure they are prepared to effectuate the transaction from a financing perspective as well as address the related financial reporting and other accounting implications. This…
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The Hidden Risk Behind the Hype Among the most pressing concerns is the phenomenon of AI washing, which can be the practice of overstating or misrepresenting a company’s AI capabilities or can be the increased acceptance of low-quality output. While it may be a trendy marketing tactic, AI washing can also carry significant legal liabilities and valuation distortions that demand scrutiny. The author discusses her views on AI washing and the implications for companies and professionals that view it as a panacea. With all the Artificial Intelligence (AI) prefixes affixed to articles, software, and paid gateway add-ons, buyer’s remorse and…
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Evaluating Your Work Product and Professional Services The author states that over the past year, he has seen clients use AI tools to “check” his work, draft their own valuation commentary, and even generate critique his reports. While he welcomes their curiosity, some encounters have been alarming. Artificial Intelligence (AI) is no longer just a topic for webinars or conference panels. It is now part of daily client interactions. Over the past year, I have seen clients use AI tools to “check” my work, draft their own valuation commentary, and even generate critiques of my reports. While I welcome curiosity,…
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Potential Impacts On July 15, 2025, the CMS released the proposed rule for the OPPS and ASC Payment System for calendar year 2026. This article provides an update on the proposed OPPS changes. On July 15, 2025, the Centers for Medicare & Medicaid Services (CMS) released the proposed rule for the Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Payment System for calendar year (CY) 2026. Among other items, the agency proposes increasing payments to all outpatient providers, eliminating the Inpatient Only (IPO) List, and changing quality reporting programs. For most procedures, the payment rates under the OPPS…
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Nunes v. Lizza—Establishing Special, General, and Exemplary Damages Former House Representative, Devin Nunes, sued Lizza and the Hearst Corporation for defamation. Nunes sought damages. The court dismissed his claim and explained how special, general, and exemplary damages are proven when the Plaintiff is a public figure. Indian musician Adnan Sami once observed, “Being a public figure, you cannot make everyone happy. Some people will criticize your actions.” Devin Nunes, a former Congress member from California and current chief executive officer of the Trump Media & Technology Group, became a lightning rod for criticism from political opponents. As Mr. Nunes learned…
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Pearls Clutched, Loaded, and Now AI-Augmented The hired guns now have AI, and they are even more convincing at making the truth sound like a lie and a lie sound like the gospel. This 23rd article in the Unimpeachable Neutrality Series revisits and revolutionizes the art of the rebuttal in an age where AI has become both sword and shield in the expert witness arena. This 23rd article in the Unimpeachable Neutrality Series revisits and revolutionizes the art of the rebuttal in an age where artificial intelligence (AI) has become both sword and shield in the expert witness arena. Last…
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It is About Positioning In this article, Rod Burkert reflects on the value and limits of thought leadership, how to position oneself or the firm, and ways that AI can help bolster the positioning effort. Ok. First, I am not a fan of the term “thought leadership” … or its predecessor, “content marketing” (so 2010s) … or the latest I’ve heard, “being a sage.” But let’s proceed with “thought leadership,” and if you know what I’m talking about, we are good to go! Pick a Niche, Build a Thought Leadership Platform Around It, and Own It One of the most…