• Practice Management - QuickRead Top Story

    I Want to Build My Authority Writing: What Do I Write About?

    January 15, 2025

    Writing is an effective way to convey expertise and also a marketing devise. In this article, Rod Burkert shares who he writes for and answers the big unanswered question: how he decides what to write about. I talk about how much I write, who I write for, and when I get it all done. But apparently, I left this big question unanswered: How do I decide what to write about? Deciding What to Write About If you’re thinking of starting a regular BVFLS newsletter or blog, probably the biggest hurdle you’re imagining is: What do I write after, like, week…

  • QuickRead Top Story - Valuation/Appraisal

    Adequate Consideration Status Update, Part II

    January 8, 2025

    For purposes of valuing an ESOP, the question of what is “adequate consideration” has vexed the author and other BV practitioners. In this article, the author shares an update on the DOL’s response to earlier inquiries. Her two previous articles published in QuickRead detailed the earlier efforts to clarify what constituted “adequate consideration” for the valuation of entities held in ESOPs. On October 25, 2024, the OMB received a proposal on the topic from the DOL intended to clarify how shares in ESOPs are valued via adequate consideration. To date, I have written two QuickRead articles (“Adequate Consideration” Defined? and…

  • QuickRead Top Story - Valuation/Appraisal

    Meet IBISWorld’s New AI Tool “Phil” A New Method of Doing Research

    January 8, 2025

    The introduction of AI tools has empowered companies to streamline complex tasks, enhance accuracy, and offer real-time insights. One such company, IBISWorld, a leader in industry research, has taken a significant step forward with the introduction of its AI tool, “Phil.” This article explores the impact it will have on professionals working in business valuation, forensic accounting, and business consulting fields. As artificial intelligence (AI) continues to transform industries, market research is one of the fields most poised to benefit from these advancements. The introduction of AI tools has empowered companies to streamline complex tasks, enhance accuracy, and offer real-time…

  • Financial Forensics - Litigation Consulting - QuickRead Top Story

    The Intersection of Advocacy and Financial Forensics

    December 31, 2024

    The Role of the Expert in 21st Century Dispute Resolution Almost five years ago, the author penned an article published in NACVA’s QuickRead April 14, 2022. In that article, he described what was his perspective as a “recovering judge” of the role of the “expert” in the 21st century profession of dispute resolution. In this article, the author revisits, and in some cases revises, the observations and predictions set forth in the earlier article. Introduction Almost five years ago, I penned an article similarly titled, which was published in NACVA’s QuickRead April 14, 2022. In that article, I described what,…

  • QuickRead Top Story - Valuation/Appraisal

    Valuation Lessons from Connelly v. United States

    December 31, 2024

    The Role of Life Insurance in Estate Taxes The recent U.S. Supreme Court case, United States v. Connelly, provides business valuation practitioners opportunities to a cautionary tale and also an opportunity to assist business owners structure or restructure their buy-sell agreements. The authors summarize the case and offer tips to assist business owners transition a business using life insurance. Introduction Does the fair market value standard require the insurance proceeds owed to a company at the date of a shareholder’s death need to be added to the value of the business for tax purposes? The Supreme Court ruled that, yes,…

  • Practice Management - QuickRead Top Story

    What Do Crime Scene Witnesses and Business Owners Have in Common?

    December 18, 2024

    Look at the Numbers and Exercise Skepticism Often, business owners will inadvertently present a biased account of their company’s success. Is there a similarity between the bias of business owner’s and crime scene victims? In this article, the author answers this question. Imagine this: you are at the scene of a crime. Witnesses are canvassed, each with their own version of events. One witness is adamant the suspect was wearing a red jacket, another swears it was blue, and a third did not even notice a jacket at all. The accounts are varied, often conflicting, and shaped by personal biases,…

  • Practice Management - QuickRead Top Story

    You Want More Clients

    December 18, 2024

    You Need Better Clients A frequent question that newly minted and experienced valuation practitioners raise, is how one gets more clients. The question that should be asked is how one gets better clients. The author shares his thoughts on why the latter is the better question and source of focus. Surprise, the most frequent practice development questions I get primarily have this theme: How do I get more clients? What if I told you this is the wrong mindset to have? How would your thinking (and actions) change if we talked about landing better clients instead? Hey, I get it.…

  • Litigation Consulting - QuickRead Top Story

    Shannon Pratt’s, The Lawyer’s Business Valuation Handbook 3rd Edition

    December 11, 2024

    Book Review This fall, the American Bar Association released Shannon Pratt’s The Lawyer’s Business Valuation Handbook 3rd Edition. This publication has been edited by Roger J. Grabowski, FASA and Alina Niculita, ASA, ARM-BV, CFA, MBA. It is a comprehensive guide for attorneys (and judges) to enable them to better understand the substance and basis of the valuation expert’s work. In this article, Michael G. Kaplan reviews the book. I Had a Problem! I received a phone call from an attorney. He was representing a client involved in a hotly contested lawsuit involving the impairment of the value of a business.…

  • Practice Management - QuickRead Top Story

    What Professional Service Firms Can Learn About Social Media from Marc Kohler

    December 11, 2024

    Marketing Tips for Professional Service Professionals Marc Kohler, an estate planning expert, may offer other professional services professionals a template to follow to secure additional engagement. The article describes how Marc Kohler has marketed his services. In the field of tax law and estate planning (where online engagement can be difficult, if not impossible to obtain), Mark J. Kohler (”Kohler”) has built a following that exceeds 500,000 followers; these followers come from various platforms. This reach is something that many in the professional service industries have only dreamed of. As an attorney and CPA, Kohler has taken what could easily…

  • QuickRead Top Story - Valuation/Appraisal

    Act Now Before It’s Too Late

    December 4, 2024

    Valuation Discounts Considered in Gift and Estate Planning With a look forward to December 31, 2025, when the current lifetime exclusion levels for estate taxes are slated to sunset, wealth planners and their clients have much to discuss. Valuation and estate planning professionals have a key opportunity to strategize and develop the best plans for family businesses and high-net-worth individuals. With a look forward to December 31, 2025, when the current lifetime exclusion levels for estate taxes are slated to sunset, wealth planners and their clients have much to discuss. They have a key opportunity to strategize and develop the…

  • Case Law - QuickRead Top Story

    Legal Update: December 2024

    December 4, 2024

    Freedman Normand Friedland LLP v. Cyrulnik—On the Valuation of Contingency Fee Cases and Qualifying as a Fee Expert When there is a consistent and predictable stream of cash flows or a history of royalties for licensed intellectual property, the valuation professional is most comfortable. In the following case, the court addressed admissibility of a valuation expert who was attempting to value an alleged interest in a law firm’s contingent fee cases—the epitome of uncertainty. The article discusses this court decision. The business valuation profession thrives on certainty and predictability. When there is a consistent and predictable stream of cash flows…

  • QuickRead Top Story - Valuation/Appraisal

    A Valuation Primer for Renewables (Part II)

    November 20, 2024

    Under Complex Considerations In Part I of this series, the article presented the fundamental standards used to gain a basis of understanding renewables and valuation drivers. These were presented in the context of an appraisal of wind rights and what would be included, as an example, in a valuation engagement. This second article focuses on the diminution of land values resulting from collateral damage from wind turbines and solar siting and placement impacting highest and best use of the subject property. In Part I of this series, the article presented the fundamental standards used to gain a basis of understanding…

  • Practice Management - QuickRead Top Story

    Why You Should Call Your Clients Every Friday

    November 20, 2024

    Beyond Just Updating on the Progress of the Project An informed client is usually a better client. In this article, Rod Burkert shares five reasons calling a client on a Friday is a worthy practice. The phone rings. You recognize the number on caller ID. It’s. THAT. Client. The one you took a retainer from a few weeks ago and who hasn’t heard from you in a while. You know the conversation is going to be awkward. Do you answer the phone? Or let the call go to voicemail? The answer to the question is that you don’t DO anything.…

  • Litigation Consulting - QuickRead Top Story

    Experts: Mitigating Uncertainty by Identifying Fears

    November 13, 2024

    A Series on Managing Uncertainty and Fear (Part II) Clients may feel isolated or overwhelmed by financial decisions. Create an environment where clients feel safe asking questions and expressing concerns. Make sure to include attorneys, financial planners, etc. to provide comprehensive support. The author, in this second part of the series, shares his strategies to address uncertainty and fear. Read Part I here. By combining technical rigor, clear communication, and collaboration, financial experts can mitigate the fear and uncertainty that often accompany financial decisions. This balanced approach helps clients feel informed, empowered, and supported throughout the process. As a financial…

  • QuickRead Top Story - Valuation/Appraisal

    Enterprise Value vs. Market Value of Invested Capital

    November 13, 2024

    In Small Business Valuations In a recent joint business valuation review engagement, the author and a fellow appraiser discussed whether one should use market value of invested capital (MVIC) or enterprise value (EV) when applying an income approach in business valuation. In this article, the author discusses these two concepts and sheds some light on why one might use one over the other. A recent joint business valuation review engagement sparked hours-long discussion between myself and a fellow appraiser about whether we should use market value of invested capital (MVIC) or enterprise value (EV) when applying an income approach in…

  • Expert Witness - Litigation Consulting - QuickRead Top Story

    Beyond the Hype

    November 6, 2024

    Why AI may Undermine Your Credibility as an Expert Witness In a recent New York Surrogate’s Court decision (Matter of Weber, 2024 NY Slip Op 24258), an expert witness’s reliance on Microsoft Copilot for financial calculations led to a notable exclusion of their testimony. The court highlighted the risks of using generative AI for evidence-based tasks, marking a significant moment for experts in accounting and other fields that demand high standards of accuracy and verifiability. This article discusses the case, as well as the risks and limitations of using AI. In a recent New York Surrogate’s Court decision (Matter of…

  • Mergers and Acquisitions/Exit Planning - QuickRead Top Story

    Preparing for Sale

    November 6, 2024

    Financial Due Diligence Preparation and readiness for the sell-side process will contribute to maximizing the value of your company and mitigate the risk of surprises at the critical stages of the proposed transaction. The author shares what to expect in a sell-side engagement and what can be done to exit successfully. You have considered the pros and cons to selling your manufacturing and distribution (M&D) business and have decided that the time is right to sell.  Many entrepreneurs fail to realize that proper and timely planning and preparation for the “sell-side” process is critical to consummating a successful, timely, and…

  • Financial Forensics - Litigation Consulting - QuickRead Top Story

    What is Your Privacy Fine Exposure?

    October 30, 2024

    From $600 to Over $1 Billion The EU General Data Protection Regulation (GDPR) and other data protection regulations apply to the smallest sole practitioner firm among us to the largest and each must take steps to implement a cybersecurity plan, to follow it, and to respond when an incident occurs. The failure to provide protection can result in fines. In this article, the author describes why Amazon and Google were fined under the EU’s GDPR. For the past five years, organizations have been dodging and weaving the myriad data protection regulations spawned from the EU’s General Data Protection Regulation (GDPR).…

  • Financial Forensics - QuickRead Top Story

    Strategies to Avoid Cyber Insurance Claim Challenges

    October 30, 2024

    Part II of II In the previous article, we posed a series of questions to consider when purchasing cyber insurance. In Part II, the authors identify not only how to answer some of the questions posed initially, but also, what value those answers bring. Moreover, the authors identify some of the common gaps and how to address them. Introduction In the previous article, we posed a series of questions to consider when purchasing cyber insurance. Our approach was deliberate: the right questions help get you the right insurance to address cyber risks facing your organization. Remember, seek the right coverage…

  • QuickRead Top Story - Valuation/Appraisal

    Business Valuations Used in ESOPs

    October 23, 2024

    Federal Rules and Regulations Governing ESOPs Business valuation reports of employer’s securities owned by ESOPs are subject to review by plan fiduciaries, government agencies, and IQPAs auditing the ESOP’s financial statements. Each of these readers have their own responsibilities to the participants and beneficiaries of the plans. This article will examine the federal rules and regulations governing ESOPS, the responsibilities of the report readers, and the use of the report as audit evidence. Introduction Business valuation reports of employer’s securities owned by Employee Stock Ownership Plans (ESOP) are subject to review by plan fiduciaries, government agencies, and independent qualified public…