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 them. Occupational fraud is formally defined as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. The purpose of this article is to take a deeper dive into understanding…
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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 intentional infliction of emotional distress. Unfortunately, the entry of this judgment against Jones is not the end of the legal battle for the plaintiffs as they are now faced with the harsh reality that Jones…
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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 the MPFS conversion factor. This article discusses the bill. 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…
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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 to see results. Intuitively, we know this is true. But it’s not what many practitioners tell me they do in real life. Many of you tell me that you start marketing…
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(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 corporations for state corporation income tax purposes. Many states tax S corporations as if they were C corporations. In addition, many other states apply a special corporate income tax rate to S corporations. The second…
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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 types of cases during times of uncertainty, including financial forensics, asset divisions, income, taxes, and other topics. Each of these are discussed below. The cryptocurrency market is down approximately 57 percent for the year as of the time…
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(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 subject private company or professional practice valuation. This discussion summarizes many of these risk factors that analysts, private company/practice stockholders, and the company/practice professional advisers should consider in the valuation of an S corporation ownership interest. Part…
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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, etc.); however, this leaves professionals in some cases quantifying goodwill without determining what, if any, personal goodwill characteristics exist. This potential misstep may leave a valuation professional not addressing or identifying evidence to support that such an intangible asset exists. This article focuses on suggested practices to identify personal goodwill…