Understand the Critical Distinction Between a “Testifying Expert” and a “Consulting Expert.” Brad Eldridge and Rebekah Smith explain how the requirements for a “testifying expert” in litigation work vary considerably from those for a “consulting expert.” Learn more about this distinction and find out how consultants can develop a checklist of best practices for courtroom preparation. ...

Critically Assess Underlying Data and an Appropriate Method for Value Determination Richard Claywell regularly reviews business valuations that seem to consider the asset, market, and income approaches in forming an opinion, but that never explain or justify a weighting methodology used to arrive at a final value conclusion. Here’s why that’s a mistake.   ...

Appeals Courts in Iowa and Mississippi Settle Divorce Disputes The Mississippi Court of Appeals reverses a trial court’s ruling in Marter v. Marter because of a valuation without sufficient evidence, and the Iowa Court of Appeals affirms the value of a wife’s intangible contributions to a business in re Marriage of Kinser.  ...

Enumerate Specific Assets, and a Specific Methodology for Those Assets If a fair market value is determined by multiple appraisers, it’s likely to be too high—and lead to a rush for the door, where the first doctor out wins. Here’s why. ...

Owners Can Improve Cash Flow, Reduce Risk, and Generate Growth Successful exit plans require building long-term value, and Ron Stacey explains how business owners can begin to do that today by improving cash flow, reducing risk, and accelerating growth. ...

Should Losses Trigger an Immediate Charge or Later Write Down? The Financial Accounting Standards Board (FASB) is engaged in an interesting discussion with the International Accounting Standards Board (IASB) regarding how quickly bad loans need to be recognized by banks. Here’s the essence of the dispute. ...

Fairness Opinions Help Mitigate Conflicts of Interest, Establish Transaction Credibility, and Avoid Unfavorable Tax Issues Brian A. Sullivan and Andrew C. Smith discuss how you can leverage fairness opinions to mitigate conflict of interest, avoid unfavorable tax issues, and help secure acceptance of transactional decisions by minority shareholders. ...

The Future Will Probably Include Not Only More ESOPs, But More High-Percentage (70-100%) ESOPs. Here’s Why What will happen with Employee Stock Ownership Plans and Trusts over the next few decades? Many authorities estimate that as many as one out of every two businesses will change hands over that time period as baby boomers enter retirement age and look to transition their long held businesses. Where does ...

There are Lots of Exit Options Owners Can Plan for, but Putting Together a Plan is Essential Business owners need to plan the sort of exit they hope for early on and treat exit options explicitly as part of their initial business plan. Whether owners are looking to sell outright, be acquired by another company, go public, choose simply to liquidate, or let the business run dry matters. Here’s why. ...

Tax Treatment for Rebates Differs Depending on How Insurance Premiums Were First Paid The last wave of MLR rebates have either reached their recipients or are in the mail. Reed Tinsley explains how healthcare practice managers can determine the appropriate way to treat those rebates when tax time comes. ...

Choosing Board Members for a Family Business Can be a Delicate Process, but with Proper Due Diligence, a Perfect Fit Can be Achieved. Mario Vicari and Tyler Ridgeway cover some of the key points in choosing board members for a family business, covering topics from how a board should be structured, how board members should be qualified and compensated, and what work should be expected from them. ...

Different Standards of Value Apply to Different Sort of Intellectual Property Valuations. Here’s Why it Matters—and How to Figure Which Standards Apply. Robert Reilly explains how different sorts of intellectual property (patents, trademarks, copyrights, and trade secret) valuations have different objectives depending on their varying purposed. It’s critical to understand those objectives in order to define ...

Appraisers in Violation of 6701 May Face Devastating Consequences. Learn More About Potential Penalties—and How to Stay in Compliance Joel N. Crouch and Joseph D. Brophy discuss the IRS Code’s Section 6701 and the relevant penalties that can be leveraged against violators. While IRS sources say that the number of penalties imposed is still negligible, this number has increased significantly and the trend co ...

New Operational Risk Thinking Can Help Predict and Prevent Disasters of a Global Scale and Improve Bottom Lines as Well In an interview with Renee Boucher Ferguson of the MIT Sloan Management Review, Kathleen Long discusses some of the threats operational risk can pose to a company and how her company, Montage Analytics, is helping businesses combat these dangers. ...

At Stake was Client Confidentiality   The Appraisers Guild reports on an important bit of recent case law.  On August 10, the Arizona Board of Appraisal dismissed the USPAP violation complaint filed by Chase Bank against John Dingeman on initial file review.  Why is this newsworthy?  Because it represents a major victory for appraisers everywhere.  Dingeman, has been fighting strong arm tactics employed by ...

Good Values are Sometimes Overlooked.  How Can Private Equity Investors Best Assess Company Viability?   With nearly $1 trillion in dry powder, the private equity market is becoming steadily more competitive. EBITDA multiples are rising, PE firms are holding their portfolio companies longer, and pension funds are starting to make direct investments. So how do smart investors in private equity compete?   Axi ...

Great Testimony Doesn’t Proceed From Charisma Alone. It’s Mostly about Preparation. Here’s Why. Joe Epps, CPA/CFF/ABV, CFE, CVA, explains that great expert testimony proceeds from extensive preparation of testimony outlines and demonstration exhibits to a thorough review of relevant documents, including expert reports, deposition transcripts, and a full reading of other parties’ testimony. ...

Whether you are engaged in a business valuation or a forensic investigation, do you know exactly what to do if you suspect that an employee of the subject company is committing theft? Darrell Dorrell and Gregory Gadawski provide company owners, CFOs, valuators, and forensic accountants with a check list of how to proceed in fraud investigations. The key procedural ingredient is caution. Here’s why. ...

More: A Case in Texas Turns on a Husband and Wife with Differing Appraisals of a Business That’s Declined in Value Peter Agrapides gathers recent federal cases bearing on valuation and family law. In Georgia, a county issues bonds to finance a regional warehouse built by the corporation; the parties agree to use a certain valuation methodology, and since agreement is mentioned in the lease, the Georgia Cour ...

ESOPs serve as a utilitarian strategy for business owners looking for unique and effective ways to improve employee benefits and business flexibility. William Stewart explains how an ESOP, depending on how you set it up, can function like a Swiss Army Knife. Depending on how you set it up, an ESOP is fully flexible. ESOPs, for instance, offer buyers and sellers a wide range of purchasing options that can va ...