• Financial Forensics - QuickRead Top Story

    Is Bitcoin a Ponzi Scheme According to Charles Ponzi? Conversations with ChatGPT

    May 28, 2025

    In this article, the author discusses the conversation she had with ChatGPT regarding Bitcoin and Ponzi schemes. This question has been around nearly as long as Bitcoin itself (without the Charles Ponzi qualifier). How could I have a conversation with Charles Ponzi? Perhaps ChatGPT has ingested enough material about the historical figure to do it for me. I initiated a new conversation with ChatGPT and asked, “Is Bitcoin a Ponzi scheme?” The short answer it gave was no and the model provided some reasons but they are boring. I then responded, “Give me more specific answers designed for a legal…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Unimpeachable Certainty in the Age of Digital Distortion and Artificial Intelligence: Trust but Authenticate

    May 21, 2025

    This 20th article in the Unimpeachable Neutrality series explores why and how valuation and forensic accounting experts may need to evolve toward a new standard: unimpeachable certainty. Neutrality, once the highest standard of expert credibility, must now be supplemented with verifiable authentication practices to ensure that expert conclusions are not built upon fabricated realities. Neutrality without authentication has become not a virtue, but a risk; a structural weakness that can be exploited. This evolution marks a pivotal moment for our profession. Those who remain static, clinging to an outdated conception of unimpeachability, will find themselves undermined not by cross-examination, but…

  • QuickRead Top Story - Valuation/Appraisal

    Being a More Trusted Advisor: Retain and Build Client Relationships

    May 21, 2025

    Finding good clients can be a challenge. Even with good clients, maintaining the relationship and improving it takes a few easy steps. In this article, the author shares steps a firm can take to improve the relationships and minimize the chance of losing the client. Finding good clients can be a challenge. Even with good clients, maintaining relationships with them can be improved by a few easy steps. Consider the following ideas, which require minimal time or expense. Visit your client’s website once a month. Look for announcements about recent changes such as new products, new employees, and new locations.…

  • Financial Forensics - Litigation Consulting - QuickRead Top Story

    Reducing Privacy Fine Exposure on the Cheap: (With the Help of ChatGPT)

    May 14, 2025

    In this article, the author provides three versions of a data retention policy that appears compliant with GDPR or NIST. After taking NACVA’s cybersecurity course, a student reached out to me asking for a Data Retention Policy template that would be compliant with the statutes and frameworks discussed in the course, such as the National Institute for Standards and Technology (NIST) Cybersecurity Framework or the EU’s General Data Protection Regulation (GDPR). I thought this may be a good question for large language models because the subject matter is old enough that there is a sufficiently large amount of material available…

  • Practice Management - QuickRead Top Story

    How to Excel at BVFLS Practice Development: The Four Pillar Framework

    May 14, 2025

    Rod Burkert has been spreading the gospel about BVFLS practice development since 2013. In this article, he discusses a framework that he has developed and can be used to close the gap between the practice you have and the practice you want. The people I talk to all seem to have slightly different ideas about practice development. Here is one definition from a Forbes article that I like: “Business development is the creation of long-term value for an organization from customers, markets, and relationships.” A good definition, especially at the level of a large firm. But how do you execute…

  • Practice Management - QuickRead Top Story

    AI Managed My Work Schedule for Two Weeks and My Productivity Doubled

    May 7, 2025

    How can one materially improve productivity in just two weeks? In this article, the author describes how she allowed artificial intelligence to start managing her work schedule. What happened next surprised her: the author gained nearly two hours a day and doubled her weekly task completion rate. I am a single mom with two kids under three years old. I work full-time as a forensic accountant and economic damages analyst. I also own several rental properties—most of which are under construction at any given time—and I serve as my own general contractor. That means I juggle everything from client calls…

  • Litigation Consulting - QuickRead Top Story

    Price Isn’t Right: Inside the Expert Battle Over Kroger’s Pharmacy Discounts

    May 7, 2025

    What does “usual and customary price” mean? How does a plaintiff challenge such a broad assertion in a class action? What will a defendant assert to discredit a plaintiff’s expert? This article discusses the Daubert motion brought forth in Kirkbride v. The Kroger Co. and provides notice to how a challenge may unfold in other class action suits that have a similar underlying claim(s). In a closely watched ruling, a federal court allowed expert testimony to proceed against Kroger over claims it concealed lower prescription prices. At the center of it is a deceptively simple term, “usual and customary price”…

  • QuickRead Top Story - Valuation/Appraisal

    SBA 7(a) and 504 Loans: How Business Valuations Drive Smarter Lending Decisions

    April 30, 2025

    This article provides a case study that highlights the methodology behind SBA-compliant business valuations. The article underscores the importance of grounding the analysis in standard valuation techniques, using reliable industry benchmarks, and properly documenting adjustments. The role and value of business appraisers to the lender and parties involved in a potential SBA-financed transaction is also discussed. Business valuations play a vital role in SBA financing. For both 7(a) and 504 loan programs, an independent business valuation is typically required in the following situations: The total financing amount (including SBA loans, seller financing, or other funding sources) exceeds the appraised value…

  • Financial Forensics - QuickRead Top Story

    Untangling the Fraud: Utilizing Data Analytics to Investigate Ponzi Schemes

    April 30, 2025

    This article examines how data analytics combined with other forensic accounting tools can help investigators uncover how investors in both traditional and newer types of Ponzi schemes were victimized, and how data can be compiled to locate stolen assets and create an analytical report that aids regulators and in legal proceedings focused on recovering funds or determining investor losses. Introduction It is widely recognized that deceiving investors is the bread-and-butter of a Ponzi scheme.[1] However, the term “investors” often conjures images of Shark Tank or Wall Street, and this is far from the type of investor that many Ponzi schemes…

  • QuickRead Top Story - Valuation/Appraisal

    From Generalist to Specialist: Tips to Successfully Transition to the Expert Level

    April 23, 2025

    There are several steps to making the transition from generalist to specialist. For those who have gone through this process, the primary regret is often that they did not make the transition earlier. To help anyone sitting on the fence, I am sharing some brief tips from my own experience. There are several benefits to being highly specialized. One of them is the reduction in the number of competitors. This tends to result in higher billing rates and less time needed for business development. Generalists tend to devote significant time to looking for prospective clients; on the other hand, specialists…

  • QuickRead Top Story - Valuation/Appraisal

    How Does Your Business Grow? The Importance of Growth Assumptions in Delaware Appraisal Rulings

    April 23, 2025

    An important input to many valuations for disputes in the Delaware Court of Chancery is a business’s terminal value; the future value of a business that reflects all the cash flows expected to occur after the period for which management or analysts typically prepare cash flow projections. In this Q&A, the article’s authors explain how the assumptions underlying such calculations affect the valuation results when employing different valuation methodologies. In valuation disputes, adjudicators critically examine the methods and assumptions used by opposing experts when estimating a business’s future value. An important input to many valuations for disputes in the Delaware…

  • QuickRead Top Story - Valuation/Appraisal

    HVAC Business Valuation Considerations: Beyond Heating and Cooling

    April 16, 2025

    From coast to coast and everywhere in between, HVAC plays a critical role in economic performance and presents compelling opportunities. This article discusses factors business valuators must consider when they are engaged to value HVAC companies. Heating, ventilation, and air conditioning (HVAC) services are not only essential, they are foundational to modern comfort and thriving businesses. The history of HVAC is rich with innovation, and so is the craft of valuing HVAC companies. From coast to coast and everywhere in between, HVAC plays a critical role in economic performance and presents compelling opportunities whether you are launching a startup, expanding…

  • Practice Management - QuickRead Top Story

    What Do I Get by Hiring You? Self-reflection and the Engagement Process

    April 16, 2025

    The buying process begins when a prospect or a referral source considers you for a new engagement, or when a client considers you for a repeat performance. In this article, Rod Burkert reflects on this aspect of the engagement process. The buying process begins when a prospect or a referral source considers you for a new engagement, or when a client considers you for a repeat performance. And it almost always begins with the same question (or thought) from the buyer: What do I get by hiring you? So, what does that prospect, referral source, or client get by hiring…

  • Healthcare - QuickRead Top Story

    Hospital Finances Held Steady: In First Month of 2025

    April 9, 2025

    In the first month of 2025, hospital revenue and expenses both increased, balancing each other out and resulting in continued steady financial performance for hospitals, according to Kaufman Hall’s January 2025 National Hospital Flash Report. This article reviews the report and the current state of hospital operations. In the first month of 2025, hospital revenue and expenses both increased, balancing each other out and resulting in continued steady financial performance for hospitals, according to Kaufman Hall’s January 2025 National Hospital Flash Report.[1] Revenues grew more quickly in the inpatient setting, as more patients were treated in the hospital and emergency…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Understanding the Income Approach: Forecasting Errors

    April 9, 2025

    One of the common pitfalls in applying the income approach is committing forecasting errors. To understand the impact of this error, this article discusses the importance of the income approach in business valuations and areas that require careful evaluation. One of the common pitfalls in applying the income approach is committing forecasting errors. To understand the impact of this error, let us first discuss the importance of the income approach in business valuations. Unlike the asset-based approaches, which primarily focus on the value of a company’s tangible assets, the income approach considers the earning potential of the business. This is…

  • QuickRead Top Story - Valuation/Appraisal

    Seize the Opportunity: Strategic Gifting Before 2026

    April 2, 2025

    The Tax Cuts and Jobs Act of 2017 presented an opportunity by significantly raising lifetime gift and estate tax exclusions, but this window is closing soon. With the exclusions set to expire at the end of 2025, there is an urgency to plan your gifts sooner than later. Imagine it is December 2025, and you have a chance to gift $14 million to your children without incurring a single dollar in federal gift tax. Fast forward just one day to January 1, 2026, and that same gift could trigger a whopping $2.8 million in taxes. This is not just a…

  • Litigation Consulting - QuickRead Top Story

    Measuring Damages Involving Individuals: What is an Injured Party Worth?

    April 2, 2025

    The Forensic and Valuation Services division of the AICPA and CIMA issued a Practice Aid in 2020 on Measuring Damages Involving Individuals. This Practice Aid supersedes AICPA Forensic and Valuation Services Practice Aid 98-2, Calculation of Damages from Personal Injury, Wrongful Death, and Employment Discrimination. This NACVA QuickRead article provides a summary of the updated Practice Aid. Introduction The Forensic and Valuation Services division of the AICPA and CIMA issued a Practice Aid in 2020 on Measuring Damages Involving Individuals. This Practice Aid supersedes AICPA Forensic and Valuation Services Practice Aid 98-2, Calculation of Damages from Personal Injury, Wrongful Death,…

  • Healthcare - QuickRead Top Story

    Fast and Furious: Healthcare Policy Edition

    March 26, 2025

    During his two months in office, President Trump’s administration has called for significant changes at a fast and furious pace, with several healthcare agencies and programs across the U.S. Department of Health and Human Services (HHS) targeted. To keep up with the latest actions of the legislative and executive branches of the federal government, this article summarizes recent events in Washington and the impact of these changes (both imminent and impending) on providers and patients. During his two months in office, President Donald Trump’s administration has rolled out edicts calling for significant changes at a fast and furious pace, with…

  • Case Law - QuickRead Top Story

    Legal Update: March 2025 | Matter of Weber—Challenges to a Trustee’s Accounting Go Awry

    March 26, 2025

    Serving as a Trustee of a Trust is difficult. In the case presented, a trust beneficiary alleged that the trustee—his aunt—breached her fiduciary duty. The trust beneficiary retained an expert in connection to this claim and this did not go well for either the beneficiary or damages expert. The article summarizes the case, provides a road map and an admonition to experts in these types of cases regarding what is needed, and the perils of using AI. British mathematician, Hannah Fry, once said, “People are often quite lazy. We like taking the easy way out …” In Matter of Weber,…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Unimpeachably Neutral Professional Judgment: Is AI the Death of Professional Judgment or its Reincarnation

    March 19, 2025

    Only with careful oversight and the application of seasoned professional judgment can AI deliver results that are not only accurate but also defensible and unimpeachably neutral. This article in the Unimpeachable Neutrality Series explores the indispensable role of professional judgment, particularly as it intertwines with the capabilities of AI. The advent of artificial intelligence (AI) has brought a seismic shift to the field of valuation and forensic accounting. Data that once required weeks of meticulous analysis can now be processed in mere minutes. While AI’s outputs relative to financial modelling can be impressive, their reliability hinges on the neutrality and…