• Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    The Unimpeachable Rebuttal 2.0: Pearls Clutched, Loaded, and Now AI-Augmented

    September 17, 2025

    The hired guns now have AI, and they are even more convincing at making the truth sound like a lie and a lie sound like the gospel. This 23rd article in the Unimpeachable Neutrality Series revisits and revolutionizes the art of the rebuttal in an age where AI has become both sword and shield in the expert witness arena. This 23rd article in the Unimpeachable Neutrality Series revisits and revolutionizes the art of the rebuttal in an age where artificial intelligence (AI) has become both sword and shield in the expert witness arena. Last month, I received what can only…

  • QuickRead Top Story - Valuation/Appraisal

    Net Working Capital: A Key Component Used in Business Valuation

    September 3, 2025

    For valuation purposes, net working capital involves a more comprehensive analysis than the straightforward traditional accounting definition of current assets minus current liabilities. This article examines the concept of net working capital and highlights its significance in business valuation. Net working capital represents a vital aspect of business valuation, as it influences a company’s enterprise value through projected cash flows, as well as its equity value based on excess or deficient net working capital at the valuation date. For valuation purposes, net working capital involves a more comprehensive analysis than the straightforward traditional accounting definition of current assets minus current…

  • QuickRead Top Story - Valuation/Appraisal

    One Big Beautiful Bill Act: Fresh Opportunities and Risks to Consider When Modeling

    September 3, 2025

    From accelerated expensing to revamped Qualified Small Business Stock rules, the OBBBA has shifted both the numerator (cash flows) and the denominator (risk and discount rates) of the valuation equation. The result is a more dynamic environment—one with fresh opportunities, but also new pitfalls. With the passage of the One Big Beautiful Bill Act (OBBBA), valuation professionals and business owners alike find themselves working under a new spotlight. The law, signed on July 4, 2025, reshapes the tax landscape in ways that directly alter the assumptions embedded in business valuations. From accelerated expensing to revamped Qualified Small Business Stock (QSBS)…

  • Mergers and Acquisitions/Exit Planning - QuickRead Top Story - Valuation/Appraisal

    Bridging the Valuation Perception Gap: Key Personnel Dependence in Sell-Side Business Valuation

    August 27, 2025

    This article examines one of the primary issues that CVAs encounter when advising clients who are preparing to sell. By identifying challenges early in the valuation process, CVAs can better educate sellers on weak points in their business and prepare them for potential poor reception that they may face from prospective buyers. Introduction Business owners preparing to sell often underestimate the risks that prospective buyers perceive in their companies. This misalignment stems from two primary factors: an owner’s intimate familiarity with firm operations and the buyer’s lack of direct involvement or institutional knowledge. These opposing forces prompt both parties to…

  • QuickRead Top Story - Valuation/Appraisal

    The Unit Valuation Principle for Property Tax Purposes: Issues and Caveats (Part V of V)

    August 27, 2025

    This final of a five-article series discusses the application of the unit valuation principle. This installment describes many of the application issues and caveats related to the use of the unit principle to value the unit of taxable property. Read Part I here. Read Part II here. Read Part III here. Read Part IV here. Introduction This is the fifth installment of a five-part series related to the application of the unit valuation principle for property tax compliance, administration, and controversy purposes. Previous installments of the series summarized what analysts need to know about the application fundamentals of the unit valuation principle.…

  • QuickRead Top Story - Valuation/Appraisal

    The Unit Valuation Principle for Property Tax Purposes: Valuation Procedures

    August 20, 2025

    This fourth of a five-article series discusses the application of the unit valuation principle. This installment summarizes the generally accepted unit valuation procedures. But first, this discussion describes the generally accepted summation valuation approaches and methods as a comparison to the unit valuation approaches and methods. Read Part I here. Read Part II here. Read Part III here. Introduction This is the fourth installment of a five-part series regarding the development of unit principle valuations for property tax compliance, administration, and controversy purposes. Previous installments described when and why to develop a unit principle valuation—instead of a summation principle valuation—particularly for…

  • QuickRead Top Story - Valuation/Appraisal

    From Vine to Valuation: Understanding Wine Businesses

    August 20, 2025

    This article is designed as a primer for valuation professionals, giving you the foundational knowledge of wine industry terms and business structures you need to navigate this highly specialized field. By building this knowledge, you will be better prepared to ask the right questions, interpret key details, and deliver valuations that truly reflect the complexities and risks behind a wine business. Have you ever stood in the wine aisle staring at a label and thought, “I have no idea what any of this means”? What exactly does Gran Reserva mean? What is a blended wine? Why do some bottles say…

  • QuickRead Top Story - Valuation/Appraisal

    The Unit Valuation Principle for Property Tax Purposes: Approaches and Methods

    August 13, 2025

    This third of a five-article installment discusses the application of the unit valuation principle. The discussion continues with a summary of the generally accepted unit valuation approaches, methods, and procedures. Read Part I here. Read Part II here. Introduction This installment is part three of a five-article series related to the unit valuation principle for ad valorem property tax purposes. Part I summarized what analysts need to know about the application fundamentals related to the unit principle valuation of complex, utility-type properties for property tax compliance, administration, and controversy purposes. Part II explained when it was appropriate to apply the…

  • QuickRead Top Story - Valuation/Appraisal

    The Unit of Valuation Principle for Property Tax Purposes: When to Apply

    August 6, 2025

    This second of a five-article installment discusses the application of the unit valuation principle. Guidance is provided for when to apply the unit of valuation principle. Read Part I here. Introduction This discussion is the second installment of a five-part series related to unit principle valuations prepared for property tax compliance, administration, and controversy purposes. As was introduced in the first installment, the unit principle is often applied to collectively value a large assemblage (or a unit) of taxpayer property. This principle is typically applied to value complex, utility-type property that is physically, functionally, and economically integrated. Unit Valuation Principle…

  • QuickRead Top Story - Valuation/Appraisal

    Factors to be Considered in Setting Compensation: Legal Cases and Statutory Factors Used to Assess the Reasonableness of Compensation

    August 6, 2025

    U.S. courts have established multiple factors and guidelines to assess reasonableness in compensation. This article reviews the factors and statutory criteria used to assess the reasonableness of compensation. Determining reasonable compensation for shareholder employees in closely held companies remains a key concern for businesses, valuation professionals, and forensic accountants. U.S. courts, particularly the Tax Court, have established multiple factors and guidelines to assess reasonableness in compensation, most notably detailed in the cases of Mayson Manufacturing Co. v. Commissioner (1949) and Elliotts, Inc. v. Commissioner (1984). The 6th Circuit Court’s opinion in Mayson Manufacturing includes the following description of key factors:…

  • QuickRead Top Story - Valuation/Appraisal

    The Unit of Valuation Principle for Property Tax Purposes: Applications: (Part I of V)

    July 30, 2025

    This is the first article of a five-installment discussion that will summarize the application of the unit valuation principle. As will be described, a unit principle valuation is not a business valuation. However, business valuation analysts are often more comfortable with the development of unit principle valuations than are real estate or personal property appraisers. Introduction This five-installment discussion will summarize the application of the unit valuation principle. As will be described, a unit principle valuation is not a business valuation. However, business valuation analysts (hereinafter “analysts”) are often more comfortable with the development of unit principle valuations than are…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Unimpeachable AI Guardrails: Ethical AI Parameters for Valuation Professionals

    July 23, 2025

    In the world of valuation, particularly at the intersection of professional judgement and AI, this 21st article of the Unimpeachable Neutrality Series begs the question now facing us: what kind of AI guardrails should exist? And how do we keep them from becoming runaway lanes, or worse, launchpads, into unintended consequences? There is something charming about a good guardrail. Whether you are navigating the hairpin curves of a West Virginia backroad or the shifting terrain of emerging technologies, there is comfort in knowing you will not plummet into the ravine of professional ruin, so long as the guardrail holds. This…

  • QuickRead Top Story - Valuation/Appraisal

    Tariffs and Uncertainty: Dissecting the Impact on Valuation Drivers

    July 2, 2025

    What impact, if any, will the imposition of tariffs have on the valuation of assets? How will the imposition of tariffs impact modeling? In this article, the author shares his thoughts on the various factors and industries that valuation professionals must weigh to prepare a valuation. Economic Uncertainty in Valuation Economic uncertainty arises when key macroeconomic indicators—such as GDP growth, interest rates, and fiscal policies—become unpredictable. This unpredictability reduces the accuracy of forecasts and limits visibility into future performance. For valuation professionals, it complicates the modeling of cash flows and expands the range of reasonable valuation outcomes, making assessments more…

  • QuickRead Top Story - Valuation/Appraisal

    Essential Factors in Deciding: Whether to Establish an ESOP

    June 25, 2025

    Not all companies are fit for an ESOP. The decision to create an ESOP is a significant one, and it requires careful evaluation beyond enthusiasm or the appeal of tax deferral. Two critical considerations stand out when evaluating whether to move forward: (1) independence of the valuation expert, and (2) whether the company is operationally, financially, and structurally suited for ESOP ownership. The author discusses the consequences of sponsoring an ESOP. For many closely held business owners, the question of succession planning often leads to consideration of an Employee Stock Ownership Plan (ESOP). ESOPs offer a unique structure that allows…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Exploring the Narcissist’s Playbook of Financial Games: From a Forensic Expert’s Perspective

    June 17, 2025

    The authors share personal stories regarding the challenges they have faced in cases that involve people with diagnosed and undiagnosed narcissists disorders. Men and women with this disorder are especially challenging and the authors share what they have learned to mitigate the damage a person with this disorder may have in a case. My (Michele’s) path into the world of divorce finance did not begin with spreadsheets, balance sheets, or courtrooms—it began with my own personal experience. Like many others in this field, my journey was shaped by real-world challenges, which gave me the passion and drive to help others.…

  • QuickRead Top Story - Valuation/Appraisal

    The Macroeconomics of U.S. Tariffs, Global Retaliation, and Shifting Trade Dynamics: Impact on Business Valuations

    June 11, 2025

    Tariffs have long served as a tool for national governments to protect domestic industries, correct trade imbalances, or as leverage in international negotiations. This article explores the cascading impacts of recent U.S. tariffs and reciprocal trade barriers on U.S. goods and services. Tariffs have long served as a tool for national governments to protect domestic industries, correct trade imbalances, or as leverage in international negotiations. The United States, as the world’s largest economy, holds a central role in shaping global trade norms. In recent years, particularly following the 2016 presidential election, the U.S. adopted a more protectionist stance, introducing a…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Unimpeachable Certainty in the Age of Digital Distortion and Artificial Intelligence: Trust but Authenticate

    May 21, 2025

    This 20th article in the Unimpeachable Neutrality series explores why and how valuation and forensic accounting experts may need to evolve toward a new standard: unimpeachable certainty. Neutrality, once the highest standard of expert credibility, must now be supplemented with verifiable authentication practices to ensure that expert conclusions are not built upon fabricated realities. Neutrality without authentication has become not a virtue, but a risk; a structural weakness that can be exploited. This evolution marks a pivotal moment for our profession. Those who remain static, clinging to an outdated conception of unimpeachability, will find themselves undermined not by cross-examination, but…

  • QuickRead Top Story - Valuation/Appraisal

    Being a More Trusted Advisor: Retain and Build Client Relationships

    May 21, 2025

    Finding good clients can be a challenge. Even with good clients, maintaining the relationship and improving it takes a few easy steps. In this article, the author shares steps a firm can take to improve the relationships and minimize the chance of losing the client. Finding good clients can be a challenge. Even with good clients, maintaining relationships with them can be improved by a few easy steps. Consider the following ideas, which require minimal time or expense. Visit your client’s website once a month. Look for announcements about recent changes such as new products, new employees, and new locations.…

  • QuickRead Top Story - Valuation/Appraisal

    SBA 7(a) and 504 Loans: How Business Valuations Drive Smarter Lending Decisions

    April 30, 2025

    This article provides a case study that highlights the methodology behind SBA-compliant business valuations. The article underscores the importance of grounding the analysis in standard valuation techniques, using reliable industry benchmarks, and properly documenting adjustments. The role and value of business appraisers to the lender and parties involved in a potential SBA-financed transaction is also discussed. Business valuations play a vital role in SBA financing. For both 7(a) and 504 loan programs, an independent business valuation is typically required in the following situations: The total financing amount (including SBA loans, seller financing, or other funding sources) exceeds the appraised value…

  • QuickRead Top Story - Valuation/Appraisal

    From Generalist to Specialist: Tips to Successfully Transition to the Expert Level

    April 23, 2025

    There are several steps to making the transition from generalist to specialist. For those who have gone through this process, the primary regret is often that they did not make the transition earlier. To help anyone sitting on the fence, I am sharing some brief tips from my own experience. There are several benefits to being highly specialized. One of them is the reduction in the number of competitors. This tends to result in higher billing rates and less time needed for business development. Generalists tend to devote significant time to looking for prospective clients; on the other hand, specialists…