Asset Values (Part III of III) This is the third of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain…
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Asset Values (Part II of III) This is the second of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain…
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Asset Values (Part I of III) This is a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain steps and procedures…
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The congratulatory texts and tweets started the last week of November. Microsoft had overtaken Apple to become the world’s most valuable company, a stunning climax in a year that also saw it pass Amazon and Google’s Alphabet Inc. Longtime employees, who’d grown accustomed to thinking of Microsoft as far removed from its glory years, when it was run by Bill Gates and feared as the “Evil Empire,” were flooded with messages from friends and family. To read the full article in Bloomberg Businessweek, click: The Most Valuable Company (for Now) is Having a Nadellaissance.
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As Apple and Amazon compete for a greater share of consumer dollars and attention, they also have a particularly intimate business relationship: Apple is spending more than $30 million a month on Amazon’s cloud, according to people familiar with the arrangement. To read the full article in CNBC, click: Apple Spends More Than $30 Million on Amazon’s Cloud Every Month, Making it One of the Biggest AWS Customers.
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Spotify Technology SA acquired podcasting companies Gimlet Media Inc. and Anchor FM Inc., a declaration that their specialty is the next big area of growth for the world’s largest paid music service. To read the full article in Bloomberg, click: Spotify Bets Big on Podcasting to Power Battle Against Apple.
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Apple is rushing to release an iOS update in China to resolve potential infringement of Qualcomm patents. The news follows a report stating that a Chinese sales ban of certain iPhone models would cost Apple millions of dollars a day. To read the full article in Cult of Mac, click: Apple Hopes iOS Update Will Help Overturn Costly iPhone Sales Ban in China.
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Revenge Porn, Ugg, VirnetX, and Apple This case law highlights a number of patent, copyright, and business valuation cases litigated in the first quarter of 2018. The revenge porn case highlights a distressing but potential opportunity for litigation support professionals. The VirnetX v. Apple and Deckers Outdoor Corporation v. Romeo & Juliette, Inc. cases highlight the perils of patent litigation and fleeting value of patents.
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Acknowledged king of the unicorns, Uber has raised over $8.8 billion of private funding since its founding in 2009, most recently at an equity value reported to be on the order of $70 billion. In the wake of a highly-publicized internal investigation of the culture at the ride-sharing firm and a recent personal tragedy, founder Travis Kalanick is reportedly contemplating a three-month leave of absence from the company. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Does it Matter Who Drives Uber? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with…
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What is the difference between a company’s total capital value and enterprise value? The difference between these two concepts is the treatment of cash. In the following post, Z. Christopher Mercer, founder and CEO of Mercer Capital, examines the effect of cash on the relative valuation multiples of three public companies. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Market Value of Total Capital and Enterprise Value: Cash Creates Potential Differences in Total Capital Multiples. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit:…
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Digital Security: Apple, Taxes, and Terrorism The FBI has attempted to compel Apple, Inc. to defeat its own encryption. Because Apple has thus far refused, a federal court in California will hear arguments. The case is certain to have far-reaching implications for the nature of digital security. Adam Junkroski, lead manager Tax Communications for AICPA, explains how the unbreakable encryption at the center of the Apple case affects tax practitioners? To read the full article in AICPA Insights, click: Update on Taxes and Terrorism: Why Client’s Data Could Become Vulnerable.
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This article provides more than a dozen tips to help transform your computer into a lean, clean performance machine. J. Carlton Collins, Journal of Accountancy contributing editor, provides some excellent user-friendly instructions to help get your computer running more efficiently. To find out more on this Journal of Accountancy article, click: Boost Your Computer’s Performance.
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Some very interesting implications can be noted comparing two different companies using EBITDA. Z. Christopher Mercer, Founder and CEO of Mercer Capital, looks at how relying on EBITDA as a measure of cash flow can impact the valuation analysis conclusion if other measures are not considered. Read more about the results of this report in the Mercer Capital’s Financial Reporting article, Public Market Views of EBITDA: Exxon Mobil and Apple. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit http://mercercapital.com/category/financialreportingblog/.
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In a recent valuation, Apple has been crowned the most valuable company on the planet, and second place wasn’t even close. After its stock hit a record high recently, Apple was valued at $700 billion. That’s $300 billion more than the runner-up, Exxon Mobile. It’s hard to wrap your head around these kinds of numbers, but imagine the enormity that is Google. Even with that kind of influence, Google is still worth only half as much as Apple. When CEO, Tim Cook, took the company’s reins from the late Steve Jobs, many were in doubt as to whether the…
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Comcast recently filed its public interest statement with the Federal Communications Commission (FCC) explaining how the American public will benefit from its $45 billion planned merger with Time Warner Cable. Comcast claims the merger is necessary because it can’t compete with the likes of Google, Apple, Verizon and Netflix–companies with a national footprint. On the flipside, over 50 public interest groups, including MoveOn.org and Daily Kos, have signed a petition stating that a merger would give Comcast unprecedented power to raise broadband rates for a significant portion of the country and gatekeeper power over too much commercial and private activity.…
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The onslaught of new phones and apps and their related potential for financial crime This article examines the high cost of convenience in regards to constantly evolving smart phones, iPads, and other personal communication device applications. The intentional (and unintentional) transfer of sensitive data between individuals happens in seconds. The author lays out the double-edged benefits of such technology and whether it’s worth the risk of being a victim of fraud and theft.
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Does failing to review anti-trust risk enormous penalties for being anti-competitive? M&A professionals need to take anti-trust considerations into their due diligence planning. As international manufacturing relationships continue to increase in the U.S., there is an ever-growing number of international authorities and nations ready and willing to contest your agreement.
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Judge Cuts Apple Award Versus Samsung, Sets New Damages Trial Poornima Gupta and Erin Smith report at Reuters report that Apple Inc had a major setback in its mobile patents battle with Samsung Electronics. On Friday, March 1st, a federal judge slashed a $1.05 billion jury award by more than 40 percent and set a new trial to determine damages. Here’s more:
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“It’s a Huge Case for the Patent-Law Community.” On One Side: Google, Facebook, Intuit. On the Other? IBM. “Because the patents are often unclear, there’s no way to know whether an infringement claim by a competitor or a troll is legitimate until you’ve spent $8 million in litigation fees,” said Mr. Schruers Ashby Jones in the Wall Street Journal reports this morning that a federal appeals court in Washington, D.C., will hear arguments Friday over a fundamental question that has vexed the technology industry for nearly two decades: When is a piece of software patentable?
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Aswath Damodaran, NYU’s Legendary Valuation Expert, Recently Argues that there’s a 90% Chance Apple is Undervalued. Here’s Why. This comes in the wake of Apple shares’ breathtaking plunge from recent highs. (That’s be about $700 in September to $425 or so today.) In a new blog post, Sam Ro at Business Insider reports that Damodaran thinks that management can learn a few things from the recent market volatility, and he offers some advice. Here are his four tips verbatim (emphasis courtesy of Business Insider’s Sam Ro: Build up credibility with investors: The company has to regain credibility with investors. Apple…