The Winklevoss Twins Realized Too Late the Value They’d Agreed to for Their Common Shares of Facebook. Here’s How it Played Out. Last week Lorenzo Carver introduced the topic of how 409A valuations destroy value for some shareholders.  Today’s piece is a case study in how a wide disparity in value estimates largely created by the 409A process played out in the UConnect v. Facebook lawsuit. ...

Authors of New Book Describe How Ability to Bring in New, High-Quality, Well-Paying Clients Consistently is Key   Bruce H. Rogers and Russ Alan Prince are the co-authors of the just published book Profitable Brilliance: How Professional Service Firms Become Thought Leaders.  At Forbes, the authors detail how a strong referral strategy is critical to a profitable, growing business, and that one of the best w ...

Why Choosing Good Counsel to Help with Exit Planning Can Be the Most Important Decision a Business Owner Makes Venture Resources believes many business owners don’t fully appreciate the complexities and factors that are present in the deal structuring and business selling process, including understanding how to project the company’s future, applying alternate deal structures, and maximizing current business ...

Good Mentors Not Only Catch Errors, but Speed Professional Development, Provide Perspective, and Help Build Your Company Brand The mentoring process is invaluable, explains Baria Jaroudi. That’s not simply because it provides a proofread and detail check, or even because it strengthens professional development and solicits team expertise and new perspectives. Perhaps most importantly, strong mentoring helps ...

Why Built-up Volatility Rates Produce Better Value Indications In part one of a three-part series, Lorenzo Carver explains how the interaction between auditors and valuation professionals during dual-purpose 409A valuations of common stock and employee stock options destroys value for hundreds of thousands of employees receiving stock options every year by granting options at strike prices that are above th ...

Avoid Hypotheticals. But Remember: Experienced Experts Recognize that Limited Evidence Will Often Support a More Limited Opinion Michael Kaplan explains how limited evidence can still support a limited opinion. Read about a valuator who had access to an insufficient number of documents and a hard cutoff date to complete a valuation by. Since the valuation was prepared in a manner that meets the professional ...

Arizona Board of Appraisal Dismisses USPAP Complaint Filed by Chase   On August 10, the Appraiser’s Guild blog reports, the Arizona Board of Appraisal dismissed the USPAP violation complaint filed by Chase Bank against John Dingeman on initial file review: ...

Study:  More Deals Occur in Countries That Follow Similar Financial-Reporting Standards   At CFO.com Kathleen Hoffelder reports that dissimilar national accounting standards and the lack of adherence to international financial reporting rules seem to be a major deterrent to companies eyeing targets beyond their borders, according to a recent academic study. Moreover, cross-border acquisitions by companies o ...

Few Companies with Under 100 Employees Have Fraud Controls in Place Small businesses are significantly more likely than their larger counterparts to neglect instituting basic antifraud controls that could save them from costly losses, a recent worldwide survey shows. The Journal of Accountancy reports in the August issue:  ...

The U.S. Must Cut $800 or $900 billion From Our Annual Government Spending to Maintain Mid-term Economic Solvency.  And That's Just the Beginning.     Flooding the system with trillions of dollars and deficits has bought the U.S. economic stagnation, writes Rob Slee in an August 20, 2012 post at MidasNation.   "What a lost opportunity. One thing we learned in MidasNation over the past few years is that when ...

Acquiring Companies Need to Conduct a Brand Valuation Post-Acquisition to Comply with IFRS.  Here's Why it Makes Sense to Do it Before the Acquisition.   As all companies complying with IFRS must carry out a brand valuation post acquisition for compliance, there’s a strong argument for carrying out the necessary due diligence and valuation beforehand, explains the marketing director of Intangible Business, ...

Divorce Proceedings Can Stall Operations, Distract Key Employees, and Require Expensive Outside Counsel. Here’s How Good Planning Can Mitigate the Costs. Solid legal counsel, pre- and post-nuptial agreements, shareholder agreements, confidentiality, and structured settlements can all ease the strain on a small business during a divorce proceeding, explains Jennifer A. Brand at the Fox Small Business Center. ...

Infosys, the Indian IT Services Giant, Has Assigned a Value to Its Entire Workforce Since 2008. Here’s Why European and American Companies Don’t Yet Formally Value Employees—and Why They Should! Recognizing the value of employees in company accounts makes a compelling business case and reflects the realities of 21st century business, argues Leon Kaye in the Guardian. ...

Healthcare Practices Still Command Significant Goodwill Value. Here’s How Owners Can Successfully Plan an Exit. According to The Health Care Group’s Goodwill Registry, a database of buy-in and sale transactions, medical and dental practices are still commanding significant prices for intangible value/goodwill. Here’s the detail on the numbers and guidance for optimal ways owners can find a successor, partne ...

New Rule Intended to Help Inform Mortgage Applicants of How Value Is Determined  The Consumer Financial Protection Bureau (CFPB) released Wednesday a new proposed rule that would require mortgage lenders to provide home loan applicants with appraisal reports to determine how the value of a property was determined, reports Tory Barringer at DS News, an outlet that focuses on the mortgage default servicing in ...

It’s Critical to Have an Exit Plan: But Unforeseen Disability or Untimely Death Contingencies Need to Be in Place Too. Here’s What to Consider Have you ever dreamed of selling your business and retiring to pursue a lifelong passion or hobby? Hopefully, that will happen. But, let’s face it. Life is unpredictable. ...

Key Strategies Include Building Competitive Intelligence, Reading Trade Media, Innovation and Response to Trends,  and More.   Bruce Marcus at CPA Trendlines offers a guide to trend-spotting for accountants: ...

Survey Shows Half of Respondents are Considering Cloud Solutions, and Three Quarters Believe Cloud Strategies Will Be Important for Their Firm's Success Within 12-18 Months Christine Camara at Accounting Web reports that a majority of top finance executives in US companies foresee Cloud computing lowering costs and helping their businesses succeed in the near future, according to a new survey - The Business ...

Recommendation Framework Paper Available; Comment Period Ends October 31st.       Late last month the FASB released its initial staff recommendations on whether and when it will be appropriate to adjust financial reporting requirements for private companies, the Journal of Accountancy reports.  The recommendations are contained in a paper, Private Company Decision-Making Framework: A Framework for Evaluatin ...

Beyond Deal Price, Consider Deal Structure, Earnouts, and Appropriate Standard of Value    When one company is acquiring another, the deal price is often the primary factor considered. Too many times, however, critical issues are overlooked, explains Sean R. Saari, CPA/ABV, CVA, MBA.  Smart Business spoke with Saari about five questions any business valuation any acquirer needs to consider:   ...