And How to Maximize It What truly influences value is the quality, consistency, and transferability of the earnings. Buyers are not solely purchasing a history of profitability; buyers are seeking future income that is sustainable and independent of the current owner’s direct involvement. Most business owners do not know what their business is worth. In many cases, they have never measured it in a formal or objective manner. Yet for most entrepreneurs, their business represents their single largest asset. It may be central to their retirement plan, their family’s financial well-being, or even their legacy. Despite its significance, the topic…
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Pre-Sale Accounting Best Practices for Buyers and Sellers In today’s market, it is especially important that prospective acquirers of emerging companies understand exactly what they are purchasing and how to allocate the purchase price among the assets acquired and liabilities assumed. This article discusses the importance of quality of earnings and impact on the acquisition price. As buyers tighten their purse strings in a volatile economy, parties on both sides of startup M&A deals must ensure they are prepared to effectuate the transaction from a financing perspective as well as address the related financial reporting and other accounting implications. This…
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The Hidden Risk Behind the Hype Among the most pressing concerns is the phenomenon of AI washing, which can be the practice of overstating or misrepresenting a company’s AI capabilities or can be the increased acceptance of low-quality output. While it may be a trendy marketing tactic, AI washing can also carry significant legal liabilities and valuation distortions that demand scrutiny. The author discusses her views on AI washing and the implications for companies and professionals that view it as a panacea. With all the Artificial Intelligence (AI) prefixes affixed to articles, software, and paid gateway add-ons, buyer’s remorse and…
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Evaluating Your Work Product and Professional Services The author states that over the past year, he has seen clients use AI tools to “check” his work, draft their own valuation commentary, and even generate critique his reports. While he welcomes their curiosity, some encounters have been alarming. Artificial Intelligence (AI) is no longer just a topic for webinars or conference panels. It is now part of daily client interactions. Over the past year, I have seen clients use AI tools to “check” my work, draft their own valuation commentary, and even generate critiques of my reports. While I welcome curiosity,…
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Data privacy with AI chatbots How to deal with the risks. Many consultants are understandably concerned about uploading client information into ChatGPT. The biggest fear is that sensitive, identifiable data could be exposed, shared with others, or even used to train future AI models. Watch this video to show you how to deal with the risks. Colin Brown is the CTO of Syncnet.com and helps consultants implement AI into their practice. He can be contacted at https://Syncnet.com or cto@syncnet.com.
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Potential Impacts On July 15, 2025, the CMS released the proposed rule for the OPPS and ASC Payment System for calendar year 2026. This article provides an update on the proposed OPPS changes. On July 15, 2025, the Centers for Medicare & Medicaid Services (CMS) released the proposed rule for the Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Payment System for calendar year (CY) 2026. Among other items, the agency proposes increasing payments to all outpatient providers, eliminating the Inpatient Only (IPO) List, and changing quality reporting programs. For most procedures, the payment rates under the OPPS…
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Nunes v. Lizza—Establishing Special, General, and Exemplary Damages Former House Representative, Devin Nunes, sued Lizza and the Hearst Corporation for defamation. Nunes sought damages. The court dismissed his claim and explained how special, general, and exemplary damages are proven when the Plaintiff is a public figure. Indian musician Adnan Sami once observed, “Being a public figure, you cannot make everyone happy. Some people will criticize your actions.” Devin Nunes, a former Congress member from California and current chief executive officer of the Trump Media & Technology Group, became a lightning rod for criticism from political opponents. As Mr. Nunes learned…
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Pearls Clutched, Loaded, and Now AI-Augmented 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…
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It is About Positioning In this article, Rod Burkert reflects on the value and limits of thought leadership, how to position oneself or the firm, and ways that AI can help bolster the positioning effort. Ok. First, I am not a fan of the term “thought leadership” … or its predecessor, “content marketing” (so 2010s) … or the latest I’ve heard, “being a sage.” But let’s proceed with “thought leadership,” and if you know what I’m talking about, we are good to go! Pick a Niche, Build a Thought Leadership Platform Around It, and Own It One of the most…
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Creative Cash Flow Analysis for Bankruptcy Assignment Earlier this year, the author received a business bankruptcy assignment which called for assessing the cash flow for a particular asset in a bankrupt estate and how the circumstances of the estate affected the value of that particular asset. As this assignment continued through testimony and the judge’s ruling, the author wanted to share his experience. While working as an economic expert, I receive numerous assignments in the areas of personal damages, commercial damages, and business bankruptcy. While the assignments for personal and commercial damages cover the waterfront for forensic economic analyses, they…
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For International Arbitration Proceedings This article highlights key valuation issues that are debated during arbitrations, which we have faced on numerous occasions. Some of the most important ones that come up during the quantification of economic damages in international arbitration are biases in financial projections, questions about discount rate, and some secondary concerns. Introduction Economic damages are seen as the Holy Grail of any international arbitration. The amount of compensation for financial losses is the ultimate goal of the claimant, who seeks to be compensated for the damage suffered, but that amount is also the main concern for the respondent,…
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A Key Component Used in Business Valuation 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…
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Fresh Opportunities and Risks to Consider When Modeling 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…
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Key Personnel Dependence in Sell-Side Business Valuation 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.…
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Issues and Caveats (Part V of V) 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…
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What Valuation Analysts Can Do on Day One Use the new =COPILOT() formula and super charge your productivity in Excel. The Problem with Excel (and Why This Matters Now) If you work in business valuation or consulting, Excel is still your daily driver. We use it for everything; normalizing financial statements, running DCF models, cleaning client exports, and building rolling KPI dashboards. But as powerful as Excel is, the bottleneck has always been formulas. Even seasoned analysts can spend too much time Googling “Excel formula to calculate CAGR,” or untangling nested IFERROR statements. For consultants who bill by the hour—or…
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Valuation Procedures 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…
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Understanding Wine Businesses 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…
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Approaches and Methods 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…
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Excel and Position Yourself as the Expert There is an important difference between a service provider and an expert. In this article, Rod Burkert discusses why the differentiation is important and how to position yourself to be an expert. When it comes to the work you do, are you a service provider or an expert? Have you thought about the differences? Do you realize there are differences? Our BVFLS industry/profession/world is changing: The number of appraisers (choices) is increasing The valuation mechanics are more intricate The businesses we value are more complex The audience of leads, prospects, clients, and referral…