A Legislative Approach? In April of 2023, the United States Department of Labor (DOL) committed to move forward with a regulation to clearly detail “adequate consideration” in section 408(e) of the Employee Retirement Income Security Act of 1974 (ERISA). For decades the DOL has utilized litigation versus heeding Congress’s edict to enact regulations regarding adequate consideration and it seems as though action is going to finally be taken. This article discusses recent developments suggesting a change in their approach. In April of 2023, the United States Department of Labor (DOL) committed to move forward with a regulation to clearly detail…
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How AI is Transforming the Industry Artificial Intelligence (AI) represents a paradigm shift in the realm of computational capabilities, transcending traditional boundaries of machine functionality to emulate human-like intelligence. AI has made remarkable advances in recent years due to the availability of massive amounts of data, powerful computing resources, and innovations in methods and architectures. This article will explore the role and impact of AI in valuation and forensic accounting, addressing the challenges and issues with AI, and ensuring quality control in using AI. Introduction to AI in Business Valuation and Forensic Accounting Artificial Intelligence (AI) represents a paradigm shift…
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Damages Before? Or Damages After? For those that perform lost profits and other commercial damage calculations, you are most likely familiar with the ex-ante versus ex-post approaches and applications when it comes to applying discounts to present value calculated damages. But what about the application of the ex-ante and ex-post theories and approaches to the damages calculations themselves? This article addresses this topic. For those that perform lost profits and other commercial damage calculations, you are most likely familiar with the ex-ante versus ex-post approaches and applications when it comes to applying discounts to present value calculated damages. But what…
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As readers know, the holy grail of a firm’s success is the professional stream and practices that sustain the referral stream. In the author’s view “it does not have to be an endless stream, just a manageable one.” The author shares his views on how to make this happen. As you know, the holy grail of your successful professional practices is a stream of referrals. But it does not have to be an endless stream, just a manageable one. Let us consider how to calculate the number—literally, the number—of referral sources you need to sustain your BV practice. And as…
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Principles, Tasks, and Tools for Success This article is based on the presentation given by Andreas Creutzmann at the NACVA and the CTI’s BVFL Super Conference in Fort Lauderdale, FL, on December 14, 2023, and on his book, Soft Skills for the Professional Services Industry: Principles, Tasks, and Tools for Success, published by Wiley. It aims to present the principles, tasks, and tools that are essential for professionals in the digital world. This article is based on the presentation given by Andreas Creutzmann at the NACVA and the CTI’s BVFL Super Conference in Fort Lauderdale, FL, on December 14, 2023,…
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Factors to Arrive at a Value that are Beyond the Three Approaches This article addresses valuations for buy/sell transactions with private buyers and private sellers. A business owner calls and says: I want to sell my business. Can you tell me what it’s worth? Thousands of these transactions are occurring daily. But before you go any further, stop and ask more questions. As business valuators, we are conditioned to crank out conclusions of value based on a pre-set series of steps like the hitch-hiker’s guide to the galaxy; the meaning of life, the universe, and everything is 42! But what…
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And How the IRS Unravels Contract Law in its Newest Cryptocurrency Proposals This article details the issues with the proposal put forth by the IRS related to cryptocurrency transaction reporting and identifies the actionable bits of information that may be useful to practitioners. This article also covers proposed rules expanded definition of a broker and whom the new regulation will cover along with the what and whys; a second article will cover the how. This article details the issues with the proposal put forth by the IRS related to cryptocurrency transaction reporting and identifies the actionable bits of information that…
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A Process to “Right” the Company Often later-stage, venture-backed companies (“late-stage start-ups”) seek advice as they find themselves languishing in the neverland between being heavy on intellectual property (IP) assets and light on commercial products or services. Typically, we are contacted by an investor or board member who has become fatigued by management’s assertions that ultimate success is ‘just around the corner,’ only to see the company repeatedly fail to achieve important milestones. The board of directors and capital sources have begun to lose confidence in management and want to get R.E.A.L. about the company’s status and prospects. Introduction Often…