It is Not Just About Having a Buy-Sell Agreement A business is a dynamic entity. Businesses are fueled by the passion and vision of its owners. While it is hard to be passionate about administrative aspects of building a successful business, the truth is, some of that stuff is crucial. Take the buy-sell agreement or similar provisions in an operating agreement—think of it as the business will—the "what happ ...

In More Ways Than One It seems every few months we read about a financial institution involved in a money laundering scandal. The bank typically agrees to pay a fine, promises to behave, hires consultants to monitor and report to the regulators, and the scandal is generally forgotten. You may ask what do the consultants do and what do they monitor? This article will discuss the development of two recent sca ...

Your Blog Posts Writing a blog is an achievement, in and of itself, but that is just the beginning. In this article, Dr. Frederiksen shares five steps you can take to effectively promote your blog posts. [su_pullquote align="right"]Resources: Marketing Techniques: Content Marketing and Thought Leadership Social Media and Networking How to Become a High Visibility Expert [/su_pullquote] If you have written a ...

Criticism of Ang (Part II of III) In the second part of this three-part article, Roger Grabowski respond to criticism over the years about the validity of CRSP Decile Size premia data. He begins by addressing the criticisms from a paper published in NACVA’s QuickRead by Clifford Ang. Roger Grabowski argues that Ang’s critique is flawed and presents concrete evidence to that effect. He also addresses other c ...

in Economic Damages Calculations (Part I of III) The AICPA has issued two practice aids, one on 2015 and most recently in November 2018, focused on the calculation of economic profits and damages. The purpose of this article—the first of three on this topic—is to provide the reader with an understanding of Chapter 1 (Revenue and Growth Rates) of the 2018 Practice Aid as well as certain other publications co ...

and Expert Witnessing In this article, the Expert Witness Exchange (EWE) discusses expert witness opportunities available to CVAs. [su_pullquote align="right"]Resources: Certified Valuation Analyst® (CVA®) Credential Online Directory: Find a CVA Expert Witness Bootcamp [/su_pullquote] As a Certified Valuation Analyst (CVA), there is a vast array of employment opportunities you can pursue. One area that may ...

Good E-mail Newsletter In January, I asked: Are you a Digital Sharecropper? Are you relying solely on someone else’s digital platform (e.g., Facebook, LinkedIn, Twitter) to reach your audience of leads, prospects, clients, and referral sources? Many of you do … that is not a good thing … and I told you why. In February, I wrote about How to Build an E-mail List from Scratch. It all starts with personally an ...

When Estimating the Cost of Capital (Part I of III) In this paper, published in three parts with NACVA’s QuickRead, Roger Grabowski reviews the size effect, potential reasons why one observes the size effect, and correct common misconceptions and address criticisms of the Size Premia (SP). Throughout this paper, the author shows that using a pure market factor as the sole risk factor in estimating the expec ...

Fresenius is the First (General) MAC in Delaware History (Part II of II) This is a follow-up article about the first seller that successfully terminated a deal in Delaware due to a MAC clause. The previous article addressed the General MAC clause. This article addresses the Regulatory MAC clause. Introduction This is a follow-up article about the first seller that successfully terminated a deal in Delaware ...

and Defense Strategies Beyond Reasonable Certainty Experts estimating lost profits under the modern new business rule know that lost profit estimates in these cases are held to a higher reasonable certainty standard than calculations for lost profits in cases with established businesses. Failing to meet this higher standard may cause an expert’s calculations to be ruled as speculative. To this level of grea ...

that Produce Results Great headlines—whether in blog posts or e-mails—can convince people to continue reading, even if the writing that follows is mediocre. In fact, researchers have found that people generally read eight out of every 10 headlines…but read only two of the pieces that follow the headlines. Because blogging and email marketing are such critical tools for accounting and valuation firms, learni ...

for the Modern New Business Rule A recent Fifth Circuit Court of Appeals decision has thrown additional light on the reasonable certainty standard used to assess lost profits for claims made by new or unestablished businesses. The decision helps put into perspective what information can and, more importantly, cannot be used to calculate lost profits for a new or unestablished business. While sometimes a dau ...

Fresenius is the First (General) MAC in Delaware History (Part I of II) What did Big Foot, the Loch Ness Monster, aliens at Area 51, and Material Adverse Changes (MACs) in Delaware used to have in common? They all allegedly existed but their existence was never proven. That recently changed with a Delaware Chancery Court judge’s 246-page decision in October 2018 that was affirmed by the Delaware Supreme Cou ...

(OSB) The OSB technique is indispensable to establish veracity when hearing or reading questions and answers, such as deposition transcripts, expert report content and even daily conversation. You can (and should) use the OSB mnemonic in most of your public and private communications, including if you provide expert witness testimony. And, once you begin applying the technique you will find it indispensable ...

Liability Claims May Follow In this article, the Expert Witness Exchange (EWE) discusses expert witness liability exposure. [su_pullquote align="right"]Resources: Expert Witness Bootcamp Experts Sabotaging Themselves in Court—The Judges Tell All Testimony at Trial: What the Trier of Fact Expects From the Expert Who Wants to be an Expert? Expert Preparation for the Expert Deposition [/su_pullquote]Expert wit ...

Introduction: The Fundamentals of Private Equity (Part I of III) Why is private equity becoming increasingly involved in the business of healthcare? How will their involvement affect the delivery of services? This first installment of a three-part series will describe the fundamentals of the private equity industry, in general, and set forth a common terminology that will be utilized throughout the series. ...

List from Scratch Last month, I wrote about the hazards of being a digital sharecropper and the benefits of reaching your leads, prospects, clients, and referral sources with your platform—like a newsletter or blog. But first you must have a list of people to send it to, and several of you asked how I got started. Let’s talk about that this month. [su_pullquote align="right"]Resources: Using Social Media to ...

About the Business of Healthcare Araliya Valuation Consulting (AVC), based in Tampa, FL, surveyed over 1,000 physician business owners to find out their perspective on the current healthcare environment, in a business context. AVC team surveyed several medical specialists, including: dentists, ophthalmologists, psychiatrists and psychologists, family medicine practitioners, chiropractors, podiatrists, physi ...

Step-by-Step With increasing competition in the accounting field, you want to ensure that clients and prospects can easily find your content through search engines like Google. You can do so by optimizing the copy (i.e., marketing text) on certain pages of your website. This article describes the process of web text optimization. With increasing competition in the accounting field, you want to ensure that c ...

Measuring the Relative Performance of Small Stock vs. Large Stock and the Cost of Equity Roger Ibbotson and James Harrington discuss two different ways of measuring the relative performance of small stocks versus large stocks in this article: (i) the “small stock premium” and (ii) the “beta-adjusted size premium”. Ibbotson and Harrington demonstrate why using a non-beta-adjusted size premium within the cont ...