• Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    Unimpeachably Neutral Professional Judgment: Is AI the Death of Professional Judgment or its Reincarnation

    March 19, 2025

    Only with careful oversight and the application of seasoned professional judgment can AI deliver results that are not only accurate but also defensible and unimpeachably neutral. This article in the Unimpeachable Neutrality Series explores the indispensable role of professional judgment, particularly as it intertwines with the capabilities of AI. The advent of artificial intelligence (AI) has brought a seismic shift to the field of valuation and forensic accounting. Data that once required weeks of meticulous analysis can now be processed in mere minutes. While AI’s outputs relative to financial modelling can be impressive, their reliability hinges on the neutrality and…

  • Practice Management - QuickRead Top Story

    Differentiate Yourself by Taking a Stand Against Something in Our Industry: Take Up an Informed Contrarian View to Disrupt the Business Valuation Profession

    March 19, 2025

    What frustrates you about our industry? Do you think your prospects, clients, and referral sources might feel the same way? What if you took a stand? What if you stood out by promising something different than the standard operating procedures your competitors follow? What frustrates you about our industry? There must be something you don’t like about why or how we do what we do. Do you think your prospects, clients, and referral sources might feel the same way? What if you took a stand? What if you stood out by promising something different than the standard operating procedures your…

  • QuickRead Top Story - Valuation/Appraisal

    Can Brands Be Valued Using Relief from Royalty Method Only? Guidance from AICPA’s 2024 Accounting and Valuation Guide—Business Combinations

    March 12, 2025

    There are various methods used to value intangible assets. The relief from royalty method is based on the premise that there are royalty savings if the acquiror acquires the asset instead of licensing it. The value of the asset is calculated as the present value of after-tax royalty savings over the economic life of the asset. This article delves into the available methods used to value brands. When a company acquires another company, the acquiror may need to perform a purchase price allocation. In essence, the purchase price allocation (PPA) analysis apportions the purchase price to various tangible and intangible…

  • QuickRead Top Story - Valuation/Appraisal

    Understanding the Biden Administration’s NPRM on “Adequate Consideration” and the Trump Administration’s Freeze

    March 12, 2025

    This article is the latest installment of QuickRead articles on ESOP regulations. Specifically, it focuses on the request, and status thereof, for the Department of Labor to clarify “adequate consideration” for the valuation of entities held in ESOPs. This article is the latest installment of QuickRead articles on ESOP regulations.[1] Specifically, it focuses on the request, and status thereof, for the Department of Labor (DOL) to clarify “adequate consideration” for the valuation of entities held in employee stock option plans (ESOP). On January 20, 2025, President Trump issued an Executive Order freezing all former President Biden’s proposals that had not…

  • Litigation Consulting - QuickRead Top Story

    Estimating Lost Profits for a Self-Employed Business: What are a Self-Employed Person’s Earnings? What are Their Profits?

    March 5, 2025

    This article will discuss some of the unique factors relating to assessing lost profits for self-employed operated businesses. As examples, two extremes will be discussed. These extremes provide virtual bookends when assessing a claim of lost profits by a self-employed person. The first addresses a self-employed person who reports his/her income through a Schedule C, Sole Proprietor. The second addresses self-employed individuals that own and operate a subchapter S corporation and file an 1120S for that business. Financial experts will often be asked to estimate the lost earnings or lost earning capacity for an injured self-employed person. This type of…

  • QuickRead Top Story - Valuation/Appraisal

    Business Valuation in Shareholder Disputes: Addressing the Value and Professional Standards Issues in the Engagement

    March 5, 2025

    Resolving a shareholder dispute often requires determining the value of a shareholder’s interest in the business. This article provides a framework for the business valuation expert to discuss this issue with attorneys and clients. Headings organize the questions and issues. Resolving a shareholder dispute often requires determining the value of a shareholder’s interest in the business. This article provides a framework for the business valuation expert to discuss this issue with attorneys and clients. Headings organize the questions and issues. Is the Juice Worth the Squeeze? This is the main question the attorney is asking us on the first phone…

  • Artificial Intelligence

    Future Forward: AI Insights Not to Be Ignored

    March 5, 2025

    In 1997, I was invited to be a guest speaker at a local heavy equipment dealers association dinner at Tuscany in Salt Lake City. The dinner was amazing, but then it was my turn to speak about the changing landscape of this new thing called the “Internet.” I explained that e-commerce would disrupt everything. I told them the day would come when anyone would be able to buy heavy equipment online. I was basically laughed off the stage as they explained why this would never happen with heavy equipment. Well, here is the mini excavator I just ordered completely online.…

  • QuickRead Top Story - Valuation/Appraisal

    Valuing Daycare and Early Learning Centers: Common Practices in Florida, Value Enhancement Strategies, and Market Positioning

    February 26, 2025

    How are day care and early learning centers valued? In this article, the author shares her thoughts on how these are valued in Florida. In addition, the author shares strategies to enhance the value of the business. “If children are the world’s greatest investment, then daycares are the blue-chip stocks of our future—steady, essential, and always in demand.” Valuing daycares and early learning centers is a dynamic and compelling area driven by multiple factors that influence their market value. Across the country, families face limited access to childcare, making daycare centers an attractive investment opportunity for both buyers and business…

  • Practice Management - QuickRead Top Story

    Data Privacy for the Future: Strategies to Limit Digital Risk and Liability

    February 26, 2025

    In this article, the author looks back at predictions made in the 2014 Pew Research. Reflecting on this study, it becomes self-evident that we understand what the problems are, and, perhaps, we even have good ideas of how to tackle these problems. Therefore, the issue is not necessarily “finding a solution” but rather, having the will and desire to implement a solution. Introduction A person’s perspectives and perceptions towards a problem drives the approach taken to solve that problem. Managing data privacy challenges are no different. Therefore, to address today’s issues, it is a worthwhile exercise to review some past…

  • Litigation Consulting - QuickRead Top Story - Valuation/Appraisal

    You Want the Valuation Experts to Reconcile: Are You Prepared for the Outcome?

    February 19, 2025

    What can parties in a litigation case do when the experts come to differing opinions of value? The authors share ways that parties and counsel can reconcile the differences or at least reduce the value gap. It sounds great—if the valuation experts can resolve their differences, a trial might be avoided, saving time and money. This strategy is not without peril, and clients may even find themselves unexpectedly bound by an agreement or terms they did not expect. This article covers what ensues when opposing legal counsels agree for the experts to meet, including how to manage the expectations and…

  • Practice Management - QuickRead Top Story

    Your Three Greatest Fears About Niching: You are not Limiting Yourself

    February 19, 2025

    There is a lot of disruption going on in the BVFLS industry and you should give niching a fair shot if you have more of a generalist-type practice. In this article, Rod Bukert shares his views on how to overcome the fears of specialization. There is a lot of disruption going on in our industry; from accounting/business valuation firm mergers to big data valuation solutions to finding qualified staff. Now is the time to either leave or dig your heels in. One way of doing the latter is by specializing in a niche and being so good at it that…

  • Litigation Consulting - QuickRead Top Story

    The Benefits of Involving a Financial Expert in Mediation: Speaking from Experience

    February 13, 2025

    Mediation aims for parties to mutually resolve their dispute. Unlike litigation and arbitration, there is no trier of fact that determines the conclusion of a dispute. Instead, the mediator, a neutral third party, tries to help all parties meet at an amicable middle ground, which can be done through creative means of communication, collaboration and problem solving. The author shares his experience serving as a financial mediator. Mediation aims for parties to mutually resolve their dispute. Unlike litigation and arbitration, there is no trier of fact that determines the conclusion of a dispute. Instead, the mediator, a neutral third party,…

  • Practice Management - QuickRead Top Story

    Should AI be Disclosed? Recognize Ethical and Professional Standards of Using AI

    February 13, 2025

    AI is pervasive and promises to fundamentally transform business operations, education, and daily life. However, functional insights bridging the gap between AI and our industry have been lacking. The authors share their views on the ethical and professional standards implicated from the use of AI in forensics and valuation engagements. This article explores the need for, or lack thereof, to disclose the use of artificial intelligence (AI) technology in the fields of business valuation and financial forensics. AI is pervasive and promises to fundamentally transform business operations, education, and daily life. However, functional insights bridging the gap between AI and…

  • Healthcare - QuickRead Top Story

    Highlights of the 2025 Medicare Physician Fee Schedule: The Failed “Doc Fix”

    February 5, 2025

    The Centers for Medicare & Medicaid Services (CMS) released its finalized Medicare Physician Fee Schedule (MPFS) for calendar year (CY) 2025. The finalized fee schedule cut payments to physicians, and Congress declined to step in and mitigate the cuts in its last-minute legislation to fund the federal government for another three months. This article discusses the provisions contained in the MPFS final rule and the failed “doc fix” legislation. On November 1, 2024, the Centers for Medicare & Medicaid Services (CMS) released its finalized Medicare Physician Fee Schedule (MPFS) for calendar year (CY) 2025, aiming “to strengthen primary care, expand…

  • Litigation Consulting - QuickRead Top Story

    Lost Profits or Lost Business Value: When to Use in Litigation Assignments

    February 5, 2025

    In a recent engagement, the author was asked to prepare a lost business analysis for an operating business. In this article, the author discusses when a lost profits vis-à-vis a lost business analysis is best suited.  Recently, I received a call from a new client. That is, I spoke with an attorney with whom I had worked in the past. He wanted to hire me to assess damages in a commercial damages case. The business had been injured by an alleged wrongful act. It was still operating and did not appear to be closing anytime soon. I began to discuss…

  • Expert Witness - Litigation Consulting - QuickRead Top Story

    Accounting Expert Witness Reliably Calculates the Quantum of Monetary Harm: The Court Assess Substantive and Procedural Advanced to Disqualify Expert Witness

    January 29, 2025

    This article provides an in-depth review of a recent infringement, unfair competition and cybersquatting where Plaintiff sought disgorgement of profits. The case highlights procedural and substantive arguments advanced during litigation and basis the Court used to partly disqualify the testimony of defendant’s expert witness. It also serves as a caution and learning opportunity for current and prospective financial damages expert witnesses. Plaintiff, Mission1st Group, Inc. (“M1G”), owns the federally registered trademark MISSION1st in connection with business advisory, information, technology, telecommunications, engineering support, and risk mitigation services. Plaintiff provides these services to a variety of entities, including serving as a government…

  • Case Law - QuickRead Top Story

    Legal Update: January 2025 | Mancini v. UBS AG: Valuation of Collateral Pursuant to an Event of Default

    January 29, 2025

    This article discusses the recent case of Mancini v. UBS AG, a case where UBS liquidated Plaintiff’s collateral following an event of default. The issue before the court was whether UBS AG acted arbitrarily when it liquidated Plaintiff’s account based on an earlier valuation date, rather than based on a higher and more recent account value. “Timing is everything” may be a cliché, but when it comes to valuation, it is certainly true. In Mancini v. UBS AG, 2024 U.S. Dist. LEXIS 213279 (S.D. N.Y. November 21, 2024), the Plaintiff learned this the hard way. Background Robert Mancini (“Plaintiff”) was,…

  • Forensic Accounting - QuickRead Top Story - Valuation/Appraisal

    Detecting AI-Generated Content: How Forensic Accountants and Business Valuation Professionals Can Give AI a “Run for its Money”

    January 22, 2025

    As AI proliferates, business valuation and forensic accountants will need to distinguish between human-authored and AI assisted/generated content. Significantly, AI generated content, as of the date of writing, is not accurate. In this article, the author examines what the above will mean to forensic accountants and business valuation analysts. With the rise of content generated by artificial intelligence (AI), it makes sense that there would also be an increase in online tools that can detect AI-generated content. What does this mean for professionals in the forensic accounting and business valuation fields? As AI writing tools like ChatGPT gain popularity, distinguishing…

  • QuickRead Top Story - Valuation/Appraisal

    Risks and Rewards: A Guide to Understanding Social Media Influenced Income for Valuation Professionals

    January 22, 2025

    While the influencer industry has created numerous opportunities for creators and brands alike, it also presents significant risks. This article aims to explore the challenges faced in this industry and offer insights into how to examine and assess these risks when performing a valuation analysis or assisting with litigation matters involving someone in the influencer industry. The rise of social media has transformed the landscape of marketing and personal branding, leading the way for a new breed of entrepreneurs known as influencers. These individuals leverage their online presence to engage with audiences, promote products, and shape consumer behavior across various…

  • Financial Forensics - Litigation Consulting - QuickRead Top Story

    Leveraging Generative AI in Complex Investigations: Effective Use of AI in Complex Investigations

    January 15, 2025

    Investigators need better ways to sift through vast quantities of data to find the information at the heart of the matter. This article examines a more efficient approach to complex investigations with Generative AI. The information in this article is intended to assist in determining the effectiveness of using GenAI in fraud and other complex investigations. Introduction Complex investigations are on the rise with investigators being asked to do more with less, therefore needing to gain efficiency to handle workloads. A complex investigation can be triggered by a litigation event, government agency mandate, internal compliance activity, or corporate transaction. Investigations…