Is Your Goal More Revenue or More Profit? Your Next Hire May Tell According to BVR’s 2023 Business Valuation Firm Benchmarking Survey, the demographics say you, dear reader, most likely run your firm as a solo (24 percent of respondents), are in a firm with one or two employees (21 percent), or are heading up a small valuation practice in a traditional CPA firm. In this article, Rod Burkert shares his thoughts on factors you may want to consider if you are thinking of growing your firm and the reasons for pursing this growth. According to BVR’s 2023 Business Valuation…
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Court Admits Royalty Analysis on a Convoyed Sales Approach and Denies Motion to Exclude Patent Infringement Case This case arose from a patent infringement lawsuit filed by the Plaintiff, Daedalus Blue, LLC against the Defendant, MicroStrategy Incorporated. Daedalus alleged that MicroStrategy’s analytics software products infringed on two patents originally developed by IBM: the ‘172 patent related to data storage and retrieval techniques, and the ‘076 patent related to restricting user access. As the case proceeded to the damages phase, MicroStrategy filed a motion to exclude certain opinions of Daedalus’ damages expert, Jim W. Bergman, under Daubert and Federal Rule of…
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The Perils of a Party Doing their Own Business Valuation in a Dissolution Action Kwak v. Bozarth is an unpublished Massachusetts case. The trial court made several decisions based on unavailable data. The case illustrates the perils of a party in a martial dissolution acting as their own expert and underscores the importance of how the standard of review affects an appellate panel’s review of the trial court decision. Valuation professionals often say that valuing privately owned businesses is a blend of science and judgment. Kwak v. Bozarth, 2023 Mass. App. Unpub. LEXIS 179; 102 Mass. App. Ct. 1116; 2023…
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For Free Imagine streamlining the administrative and marketing tasks of your business valuation or forensic accounting firm, freeing up valuable time to focus on higher-value activities. In the dynamic landscape of these industries, professionals are constantly seeking innovative solutions to boost productivity and efficiency. In this article, we delve into the extraordinary capabilities of ChatGPT and its potential to transform your firm. Imagine streamlining the administrative and marketing tasks of your business valuation or forensic accounting firm, freeing up valuable time to focus on higher-value activities. In the dynamic landscape of these industries, professionals are constantly seeking innovative solutions to…
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Part III of III This article is the third and final of a three-part series on intangible property and property tax appraisals. Read Part I here and Part II here. Valuation analysts are often retained by industrial and commercial companies to assist with state and local property tax planning, compliance, and controversy matters. Often, analysts are retained by the legal counsel for the corporate taxpayers. This is particularly the case when the property tax matter involves an assessment appeal or litigation regarding the amount of the property assessment. The articles in this series focus on the valuation of intangible property…
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The Role of a Neutral Third-Party Valuation Expert as an Umpire in Partnership Deadlocks Partnerships are common structures in professional service practices, offering opportunities for synergistic collaboration. However, conflicts can arise, especially in the absence of a well-contemplated equitable profit-sharing formula and a deadlock-breaking mechanism in the partnership contract. This article explores the fair resolution of partnership disputes arising from equitable profit-sharing in a 50/50 partnership with unequal workloads, and without a deadlock-breaking mechanism. Introduction Partnerships are common structures in professional service practices, offering opportunities for synergistic collaboration. However, conflicts can arise, especially in the absence of a well-contemplated equitable…
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Part II of III This article is the second of a three-part series on intangible property and property tax appraisals. Valuation analysts are often retained by industrial and commercial companies to assist with state and local property tax planning, compliance, and controversy matters. Often, analysts are retained by the legal counsel for the corporate taxpayers. This is particularly the case when the property tax matter involves an assessment appeal or litigation regarding the amount of the property assessment. The articles in this series focus on the valuation of intangible property within the context of ad valorem property tax disputes. Introduction…
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A Review of the Basics for Lost Profits (Part VI) The first five installments of this series have been a review of the basics for calculating lost profits. In the series, lost profits was defined, the common methods used for calculating lost profits (yardstick, before and after, sales projections, market) were discussed, the court standards for assessing lost profits (foreseeability, proximate cause, reasonable certainty) were reviewed, the way of discounting future lost profits to present value was presented, modeling lost profits calculations and how these factors impact the discount rate were discussed. In addition, this series has addressed the differences…