Part II of IV This article is part two (read Part I here) of a four-part series related to the bankruptcy-related appraisal of industrial and commercial company real estate and real property, tangible personal property, and intangible personal property. Part one of the series considered all of the reasons why a valuation specialist in any appraisal discipline (herein called an “appraiser”) may be retained to value the debtor company property within a bankruptcy context. This article considers what the appraiser, the client, and the client’s legal counsel need to know about the bankruptcy appraisal assignment and process. Introduction This article…
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Tax Saving Tips for Small Business Owners This article discusses the recently issued Rev. Proc. 2022-32. The revenue procedure also serves to remind every estate planner that the days of the high lifetime exemption will soon be ending starting in 2025, if not sooner with all the uncertainties in Congress and the economy. The author discusses the merits of gift-giving in light of the potential changes. On July 8, 2022, the IRS released a revenue procedure that can be seen as a wake-up call about a tax-saving opportunity that may be overlooked by estates and their fiduciaries. Rev. Proc. 2022-32…
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Third Quarter 2022 2021 was a significant year for business owners who chose to exit via a sale of their privately held businesses. The government’s response to the COVID-19 pandemic pumped billions of dollars into the economy, helping to drive a robust mergers and acquisitions market led by aging baby boomers preparing to retire and concerned about the prospect that the Biden administration was potentially eliminating the favorable capital gains tax. This article is written to provide an exit planning market update following this historic M&A cycle against some economic headwinds and challenges in today’s market. The article focuses on…
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Part I of IV This is the first article of a four-part series. This initial article summarizes the generally accepted property appraisal approaches and methods that appraisers typically consider in a bankruptcy-related assignment. This discussion also describes the property appraisal synthesis and conclusion process. Due to the litigious nature of a bankruptcy proceeding, bankruptcy-related property appraisals are often subject to a rigorous contrarian review. Therefore, this discussion summarizes what the parties-in-interest (and their legal counsel) and the appraiser should know about an effective (i.e., persuasive) bankruptcy-related property appraisal report. Introduction After adjusting to the initial pandemic-related disequilibrium, many industry segments…
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An Outline for Making Awards Useful and Final (Part III of III) Appraisal is a frequently used and often maligned method to adjudicate disputes in the property insurance world. Typically, appraisal is used for the purposes of evaluation only and will not bring finality to a claim in which coverage, or, in certain jurisdictions, causation is also being disputed. Although the perceived advantages of appraisal versus litigation are that it is considered fast, inexpensive, and relatively final, the appraisal process is often criticized because of unpredictable awards that are not helpful in settling a disputed claim and, in some cases,…
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Why isn’t that client opting for the higher level of service? Why hasn’t that prospect accepted my proposal? Why can’t these people see the value in what I do? Can’t they see I’m an investment, not a cost? Oh, sorry—I’m not talking about your clients and prospects. I’m speaking for your current and potential vendors, i.e., that means you, but from someone else’s perspective. In this article, the author proposes that we reflect on why prospects shop for services and recognize that, perhaps, we are not offering them what they need and that we too do the same. Why isn’t…
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Conclusory Conclusions and Opinionated Opinions Tests of Time The current valuation environment tends to be more about supporting the conclusion of value based upon the chosen approach and methodology with consideration of all three approach to business valuation far too often involving little more than the analyst placing a wet finger in the air and saying “ah yes, a discounted cash flow.” This eleventh article of the Unimpeachable Neutrality series discusses the need for abductive inferences when valuing a business and delineates conclusory conclusions, opinionated opinions, and concluded opinions of value. I have a business that I would like to…
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An Outline for Making Awards Useful and Final (Part II of III) Appraisal is a frequently used and often maligned method to adjudicate disputes in the property insurance world. Typically, appraisal is used for the purposes of evaluation only and will not bring finality to a claim in which coverage, or, in certain jurisdictions, causation is also being disputed. Although the perceived advantages of appraisal versus litigation are that it is considered fast, inexpensive, and relatively final, the appraisal process is often criticized because of unpredictable awards that are not helpful in settling a disputed claim and, in some cases,…