A Primer for Business Valuation, Forensic, and Litigation Support Professionals This is the first article in a series related to the cryptocurrency valuation and litigation. This is an emerging area of practice. In this first article, the author explains what is a blockchain and the purposes blockchains serve. Cryptocurrency litigation in the past decade has appeared in various dispute types: Matrimonial disputes where property characterization, asset concealment, and valuation are key components of the forensic practitioner’s work product; In civil disputes where a lack of professional skepticism, an over-reliance on 409(A) valuations, and subversive explanations are key pitfalls of a…
-
-
An Option to Full-Blown Litigation This article is the first of a multi-part series wherein I will provide the broad strokes of the Collaborative Process and continue with examples of engagements wherein the process has been used (both successfully and unsuccessfully). For the first two years of my practice (2013 through 2015), I worked almost exclusively in pre-nuptial agreements and divorce, mostly in business valuation services and litigation support. These first two years, as is likely the case for many sole proprietors, were from a professional perspective, the most significant for me and the future operations of my company. It…
-
A Deeper Inquiry to Better Understand Risk and Performance Key performance indicators (KPIs) can provide business valuation better insight regarding the risk profile of the company, revenue drivers, forecasts, and performance of management in the market served. In this article, the author provides insight regarding what metrics are potentially available to better understand a firm that is being valued. When performing a business valuation analysis, one essential consideration is understanding the subject company’s revenue drivers. Looking at the company’s top-line revenues, a growth or a decline rate is clearly visible. Throughout the valuation engagement, a valuation professional may inquire about…
-
The Layered Approach There is a maxim in forensic accounting that investigations take twice as long as anticipated, yet the final report appears to have taken half the time. This article provides an overview of the forensic methodology to balance client expectations with the appropriate level of service. Each progressive layer allows for the milestones reached to be evaluated before expanding the scope. This article will also assist the forensic practitioner in communicating the costs of continuing the analysis against the anticipated benefits. There is a maxim in forensic accounting that investigations take twice as long as anticipated, yet the…
-
Business Revolution, Ethical Implications, Strategies for Business, and the Path Forward In this article, the authors examine the fine line between the unparalleled benefits of AI and its potential pitfalls. The authors advocate for a future where humans and AI work together harmoniously, driving innovation, productivity, and long-term success in an increasingly competitive global landscape. As professionals continue to develop and utilize AI, it is essential to remember that it is a human creation, designed to enhance humanity. AI should remain a tool for human betterment, augmenting our capabilities rather than replacing them entirely. This said, there are risks and…
-
Reflections from an Experienced BV and Litigation Support Professional The author recalls that he originally thought that going solo was an ideal world. He distinctly recalls “I imagined hanging out my shingle and top shelf clients calling me to do their valuation projects on day one. Those clients would pay premium fees for my sage advice and bespoke reports. And the workflow would be steady.” Given his years of experience, the author shares eight truisms of being a solo practitioner. In my original, ideal world of going solo, I imagined hanging out my shingle and top shelf clients calling me…
-
(Part IV of IV) Analysts often apply the cost approach to value special-purpose property. And the measurement of economic obsolescence is an important but often controversial procedure in such cost approach analyses. Part one of this four-part series considered economic obsolescence concepts. Part two discussed the generally accepted measurement methods. Part three recommended responses to the most typical assessment authority objections to economic obsolescence measurements. This fourth part recommends best practices responses to other (but still common) assessor objections to economic obsolescence measurements. Introduction Valuation analysis (“analysts”) are often asked to value special-purpose industrial and commercial property. When analysts value…
-
To look to the future of the BV profession, we must explore the relevant dynamics within the industry. That starts with looking to our past to see what events and milestones brought us to where we are today, followed by ascertaining the economic and demographic trends leading us into the future, and culminating with identifying those trends which will have the greatest impact upon the profession. NACVA set upon drafting a white paper that would provide valuable insight to the future of the business valuation profession, with Chris Mercer taking the lead who is known by nearly every person in…