Important factors to consider in making tax adjustments to pass-through income Damodaran recently wrote about the potential devaluation of dividend-paying stocks if the preferred dividend tax rate were to climb back up to the ordinary rate.  This could inspire valuation experts to make a tax adjustment reducing untaxed Pass-Through Entity (PTE) income to equate it with corporately taxed income that qualifie ...

Understanding EBITDA applications is crucial to accurate buyout values. This analysis examines EBIDTA as an overused metric that does not represent real economic profit.  According to the author, eight subtractions are required to consistently and accurately determine true profit values.   ...

Should life insurance be considered a repurchase funding asset or a corporate non-operating asset and in what situations? ...

Fraudsters Are SophisticatedThis article examines the technology associated with Wi-Fi, vulnerabilities to commit fraud and preventative measures that can be taken to avoid becoming a victim of fraud. ...

Exits of private equity firms from investments fell 67 percent by volume and 81 percent by dollar value. ...

Valuation professionals must continually keep abreast of the latest news and developments.  Whether it’s the latest Internal Revenue Service (IRS) ruling, a new, wide-ranging court decision, or newly issued standard, trying to stay on top of it all—while managing a practice—can pose a significant challenge.  But as Nancy Gault recently learned at NACVA’s Annual Consultants’ Conference, Around the Valuation ...

Changes in the capital markets utilized in financing healthcare transactions have transformed the way that the healthcare providers and enterprises operate within the current transactional marketplace, explains Robert James Cimasi.  These changes, particularly in recent years following the “Great Recession,”  relate to both the availability of capital sources and the types of financial instruments used.  As ...

Owners Looking to Protect Home Views Buy "Air Rights" to Stop Further Development.  See the Video to Find What One Homeowner Paid $600,000 to Preserve. The latest trend in Seattle's real estate market has homeowners looking up for some quick cash, reports Heather Graf at King 5 News (KVUE, an ABC affiliate)  in Seattle.  Depending on where you live, the air above your roof could be worth a lot of money.  He ...

If IRS Imposes a Penalty, That Penalty Cannot be Negotiated as Part of a Settlement on Another Tax Matter  The Internal Revenue Service is opposed to negotiating penalties with noncompliant taxpayers, a stance that should benefit appraisers and tax advisors because individuals will be required to assume more responsibility for their deductions, Bloomberg BNA (subscription required) reported this month.   Ap ...

A Majority ≠ Control or Liquidity Examining actual transactions in the private capital markets and court outcomes figure into whether holding a large block of stock equates with it control or even a premium.  The internal and external factors, legal provisions, and property performance drive this result.  ...

How Forensic Accountants Can Aid Auditors in Risk Assessment Should an assessment of corporate culture be a factor auditors should consider as part of a risk assessment process? These authors think so. Find out why. ...

One Medical Practice Could—Depending on How Rules of Thumb are Applied—be Valued at Several Radically Different Prices. Find Out Why! Paul Hyde, in a recent Around the Valuation World™ in 90 Minutes webinar, explained why rules of thumb are dangerous to rely on for valuation. The focus of his argument relied on six simple graphics that illustrated how the value of one hypothetical medical practice could—dep ...

Careful Estate Planning Overcomes IRS Objections Even After Sudden Death Keller v. United States resulted in a huge family limited partnership (FLP) win—$125 million—in Fifth Circuit Court.  In this article, learn what the lead attorneys at the Dallas-based law firm of Meadows, Collier, Reed, Cousins, Crouch, and Ungerman have to say about FLP planning and their victory as well as what every financial advis ...

There Has Been a Drop in Deal Volume, per GF Data. But Here’s Why it Hasn’t Affected Prevalent Values. Bob Wegbreit offers data confirming what private equity buyers and financial professionals have sensed since the beginning of the year—that the explosion in deal activity heading into the end of 2012 carried no momentum into 2013. Still: while deal volume has declined, valuations haven’t. Find out more. ...

How to Work with Generation Y Lawrence Horwich explains what interests Gen-Y employees and how to create an environment within your firm to engage their interests. Find out more.   ...

A Calculation of Value is Not an Opinion or a Conclusion Dave Cooper and Bob Brackett answer common questions about standards and compare calculations of value to other services provided by valuators. Read more.   ...

Forensic Accounting Requires Nuance Performing forensic accounting in front of the Justice Department is like a wild rollercoaster ride, explains John DeLuca. Here’s why.  ...

More Detail on Obligations Included in Minimum Lease Payments Required Under ASC 840  Grant Thornton's On the Horizon web publication  explains that leasing agreements vary in their specific accounting requirements when it comes to assessing — and retiring the value of  — leases.    Here's more:  ...

Find Out the Specific Requirements a Valuation Needs to Include to Pass Muster with the SBA Matt Stelzman explains in The Chattanoogan that the Small Business Administration (SBA) has loans available that can help small businesses make it to profitability, self-sufficient revenue, or at least the next round of funding  —  but in every case these loans require independent valuations.   Here's more:  ...

Requiring Valuation Analysts to Have Specialized Trainingk Credentials, and to Adhere to Professional Standards Will Protect ESOP Participants and Beneficiaries   CPA Practice Advisor reports that the President and CEO of the American Institute of CPAs (AICPA), Barry C. Melancon, CPA, CGMA, has publicly announced his organization's support for a new bill in the House of Representatives.  H.R. 2041 would mod ...