November 2022 The importance of consumer protection laws can seem unfathomable when you see a label on a sweater reminding you to remove the child before laundering, but laws prohibiting deceptive trade practices and false advertising exist because the incentives to run roughshod over consumers are significant. Since the individual harm resulting from consumer fraud is often small, those laws often provide ...

On Business Valuation The effects of inflation on consumers’ spending and psyche are well-known. The difficulties each causes in day-to-day life are often discussed. Inflation has affected everything from the cost of transportation to the cost of food and housing. What is less discussed, however, is how the current inflationary period is affecting small business owners and their companies. In this article t ...

Alleged Best Practices to Whom? Peter J. Butler, CFA, ASA, MBA, founder of Valtrend, LLC and inventor of the Total Cost of Equity Calculator (TCOE), responds to comments made by Robert Reilly and Connor Thurman regarding best practices used to arrive at the company specific risk; the latter article did not discuss the TCOE and here he “key[s] in on Part III—the section which addresses empirical evidence in ...

It is that time of the year when we take stock of what we accomplished, what we did not, and plan for next year. But chances are, you may be too focused on tasks you can check off when they are done and not the big picture goals or where they are leading you towards—or not. This article discusses the importance of taking-in the big picture—the goals, strategies, and tactics—as one develops and/or reviews th ...

A Review of the Basics for Lost Profits (Part III) This is the third installment of this series. The first part provided an overall introduction to this review of the basics for lost profits. The second part reviewed the similarities and differences between estimating lost profits and litigious based business valuations. This installment takes a deeper look into the methods for calculating lost profits. Fou ...

The Consistency of Data and Trends The real estate sector encompasses a variety of activities, limited only by the imagination, including: selling, leasing, management, development, appraisal, title services, and investment. When valuing businesses linked to the real estate market, whether directly or indirectly, it is essential to examine both the risk and the cash flow generating ability of each company. ...

Taking Another Look at Perpetrators and Their Schemes—Can a Testifying Expert Witness Rely on the Financial Statements and/or Other Financial Reports Provided? For more than a decade, the Association of Certified Fraud Examiners (ACFE) has published its report on global occupational fraud. The term occupational fraud refers to frauds that are committed by individuals against the organizations that employ th ...

The Statute of Elizabeth Lives On The Sandy Hook school massacre is the subject of multiple pending litigations commenced by the families of students killed in the tragedy. Alt-right radio show host and prominent conspiracy theorist, Alex Jones, is the main target of these actions following years of broadcasting that the shooting was a hoax. The initial actions are based on allegations of defamation and int ...

Valuation Implications On September 13, 2022, Representatives Ami Berra (D-CA-7) and Larry Bucshon (R-IN-8) introduced the Supporting Medicare Providers Act of 2022 (H.R. 8800), which aims to infuse the Medicare Physician Fee Schedule (MPFS) with a 4.42% funding increase for 2023. With a bipartisan coalition of 12 co-sponsors, the bill would have the practical effect of negating the impending 4.42% cut to t ...

No matter what marketing strategies we use, we must be committed to them—and be consistent with them—if we want to see results. Intuitively, we know this is true. But it’s not what many practitioners do in real life. The author shares two strategies that are needed to successfully market services. No matter what marketing strategies we use, we must be committed to them—and be consistent with them—if we want ...

(Part II of II) There are special tax considerations related to the transfer of S corporation stock at the time of the owner’s death. Therefore, owners of S corporation stock must be intentional with regard to the risks (and the tax costs) associated with an inadvertent termination of the subject entity’s S corporation status. S corporation owners—and analysts—should be aware that many states tax S corporat ...

Strategies for Resolving Litigation Disputes The cryptocurrency market is down approximately 57 percent for the year as of the time of this writing. For many, this news may bring a feeling of JOMO (Joy of Missing Out). For practitioners involved with crypto-litigation, however, it just further complicates a complex subject matter. This article explores the considerations and strategies to help resolve these ...

(Part I of II) Analysts are quick to identify and quantify the implicit and explicit S status economic benefits in the S corporation business valuation. The objective of this discussion is to summarize the offsetting economic risks associated with an S corporation ownership interest. Analysts should be equally aware—and intentionally consider the risks as well as the benefits—of S corporation status in the ...

Identification First! Few articles in the business valuation profession address the identification component of valuing goodwill, particularly personal or professional goodwill in the context of matrimonial dissolution matters. Current literature provides valuation professionals with techniques regarding the quantification or valuation exercise (e.g., cost approach, discounted cash flow, relief from royalty ...

In Collaborative Practice Collaborative practice differs from arbitration, where a “private” judge decides the matter. It also differs from mediation where a mediator tries to steer/cajole the parties to a settlement. Under collaborative practice, the parties to a dispute, supported by a team, work together to reach a settlement that works for them. This article discusses the elements of collaborative pract ...

Conclusory Conclusions and Opinionated Opinions Tests of Time While there is usually more than one reason that something bad occurs, it is often standard setters or practitioners that are rightfully or wrongfully accused of actions or inactions that may or do have a detrimental impact on an industry, case, business, or even members of a protected class. This twelfth article of the unimpeachable neutrality s ...

Beyond Prescription Drug Costs On August 16, 2022, President Joseph Biden signed the Inflation Reduction Act of 2022 (IRA) into law. The broad bill, which covers healthcare, taxes, and climate change, had been passed around Congress in assorted versions with varying support for months, but under the specter of a record 40-year-high inflation rate, congressional Democrats ultimately came together to pass the ...

How does a business valuation appraiser become top of mind? For an expert to be top of mind in the mind of their target audience, this audience wants to see examples of the writer’s passion, personality, and perspective—the last item meaning, “show me how you would approach and solve this problem.” To do this, the writer needs original content. Content that is educational, a bit entertaining, and likely to ...

Part IV of IV This article is the fourth (Read Part I, Part II, and Part III) and final part of a series related to the development of—and the reporting of—a bankruptcy-related appraisal of debtor company industrial or commercial property. This part considers (1) the valuation synthesis and conclusion process and (2) the reporting of the bankruptcy-related property appraisal. Introduction Property appraisal ...

With Examples From Asset Misappropriation to Financial Statement Fraud (Part II of II) This two-part article (Read Part I here) focuses on the two significant, but different, roles forensic accountants play in quantifying employee losses and how—in the normal course of the analysis—they may find instances of fraud that require further investigation. The authors first provide detailed guidance for forensic a ...