Questions from the NACVA Conference Regarding Discounting Lost Earnings for Self-Employed Individuals In June 2021, the author of this article made a virtual presentation at the NACVA and the CTI’s Business Valuation & Financial Litigation Hybrid & Virtual Super Conference. The presentation was “Estimating Economic Loss of the Self-Employed: Lost Profits or Lost Earning Capacity”. One of the attende ...

Last month, Rod Burkert wrote about the four worst ways to generate new clients. Well, then there has to be the four best ways—right?! Read on! Here, Rod Burkert describes what you must do more of to get new clients. Last month, I wrote about the four worst ways to generate new clients. Well, then there has to be the four best ways—right?! Read on! For most businesses, getting referrals is usually a top mar ...

This article discusses the recent settlement of National Spine and Pain Center signed with the U.S. Department of Justice and provides the basis to discuss the importance of obtaining an opinion regarding the FMV physician compensation. On August 6, 2021, the U.S. Department of Justice announced that it had reached a settlement with National Spine and Pain Center, LLC (NSPC), a Maryland physician management ...

Grantor Trust—Living Trusts to Irrevocable Trusts and their Taxation This article provides the general rules which are applicable for many and sometimes almost every situation, but with taxes and legal issues there are very few absolutes and almost everything has exceptions. That is why competent and experienced advisors must be used in every situation. This article provides an overview of the different typ ...

Post Closing Task List This article provides readers with a checklist used at a business transaction that just closed. The list was adapted from e-mails sent by the author to clients immediately after the closing. The list includes what they can and should do following the closing and is a way to further involve oneself in post-closing activities. The list collects all the different things (personal, invest ...

What to Watch For and What to Watch Out For Expert testimony is not for the faint of heart. The best expert is that person who gathers trial experience well before the first testimony experience and in that time has not only developed the technical skills—meaning mastered and acknowledged the methodologies—but has also attended depositions, jury trials, and bench trials. The practitioner will also understan ...

Fraud Issues in the Hospitality Industry Post-COVID-19 Pandemic The hospitality industry is already experiencing an increase in fraud, and everyone associated with the business—including operators, owners, managers, employees, and even guests—is at risk of being affected. In this article, the author identifies areas of fraud and provides recommendations to mitigate risk.  As a self-proclaimed foodie, I am e ...

The Future of Main Street Business Succession In 2001, veteran investment banker, Peter Christman, first identified the need for a holistic approach to preparing owners of midmarket businesses for sale and/or exit. He set about writing a book to address this. At the time, the first Baby Boomer was 56 years of age. Those Baby Boomers are now not so young. In this article, the author shares his impression of ...

Pearls Clutched and Loaded Have you ever read an opposing expert’s rebuttal of your expert report that left you clutching your pearls the rest of the day? With over 2,000 cases under my belt, I have had some true works of fiction written about me and still can be found clutching my proverbial pearls from time to time. This ninth article of the Unimpeachable Neutrality series discusses how to quell the no go ...

That You Think Still Work What are the most effective ways to market professional services? In this article, Rod Burkert shares the four worst ways to get new clients. We all know the “generally accepted” marketing techniques to create referral opportunities that can lead to new clients. We also know the mileage of different techniques can vary. What if I could tell you the worst (and best) ways? Backed up ...

And S Corporation Acquisitions Analysts should be aware that one transaction tax structure that is particularly popular regarding private equity firm acquisitions is an Internal Revenue Code Section 368(a)(1)(F) reorganization of the private S corporation. The article discusses several of the reasons why owners may want to sell—and why private equity firms may want to buy—an S corporation target company. Th ...

The Dark Web Criminals Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have issued recent advisories concerning ransomware payments. This article provides an overview of those advisories. Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have ...

The Evolution of Digital Forensics and Growth of the Industry The rapid growth of technology has resulted in the computer age, which has given rise to cybercrimes. Savvy criminals today use devices such as tablets, computers, smartphones, and cloud storage in the planning and commission of cybercrimes, whether to wreak havoc in the system of an organization or in the commission of a crime of self-enrichment ...

A Data Analytics Approach The valuation of minerals and renewables falls outside the usual guidelines of real property appraisal, where real property broadly defined includes land, everything permanently attached to it, at, above, and below the earth’s surface and all the interests, benefits, and rights inherent in the ownership collectively referred to as “the bundle of sticks”. This is because most apprai ...

How Does it Work? Everyone seems to be talking about cryptocurrency these days, but many are unsure how to define it and fewer still, know exactly how it works. Cryptocurrency is a digital construct without physical substance; the only evidence of its existence is the digital record or ledger indicating balances held (like a balance sheet) and transactions that have occurred (like an income statement). What ...

Communicating Value “Comparing apples to oranges” refers to contrasting two or more items that are similar, but that have important differences. While apples and oranges are both fruits, they have different flavors, colors, textures, etc. In a business valuation, comparing enterprise value to equity value is like comparing apples to oranges. Both measure the value of a business, but the results can differ s ...

Diversify the Revenue Sources Valuation consultants usually have training and experience with the process of normalizing owner compensation. They may also have access to compensation comparability data, which is a collection of actual amounts paid by other employers which can be sorted. Therefore, valuation specialists may already have what they need to begin adding compensation consulting services to their ...

Risks in a Post Pandemic Environment The pandemic placed many individuals into an environment where they had to rely on technology to conduct daily life and the financial transactions associated with it. This was a major change; especially for a generation that was accustomed to handling their banking and financial transactions face to face. Forcing a generation to begin to conduct banking and purchasing on ...

Analysis of Deal Stats Pre- and Post-COVID-19 This article will review PE activity generally, and in the healthcare industry, during the COVID-19 pandemic, and discuss what is expected for the remainder of 2021, as the economy evolves in response to a post-pandemic America. The involvement of private equity (PE) in the healthcare industry in the first quarter of 2021 disappointed investors after the number ...

You Should Feel the Same Way There is a great expression that is used as advertising in our industry: the business we value most is yours. (It is like: The customer is always right.) It is a great slogan and one the author quoted in his LinkedIn profile! And then, as the author states, he wised up and discovered that the business he valued most was his own. In this article, he explains why the reader should ...