Awaiting Proposed ESOP Regulations In April of this year, the author wrote “Adequate Consideration” Defined? for QuickRead. Since then, the author has regularly checked for updates from the Department of Labor (DOL) with respect to the definition of adequate consideration as it pertains to section 408(e) of the Employee Retirement Income Security Act of 1974 and employee stock ownership plans. Although there have not been any regulatory updates from the DOL (as it pertains to the definition of adequate consideration), there is some news on the topic to share. In April of this year, I wrote “Adequate Consideration” Defined? for…
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The two most widely approaches used by valuators to determine a discount for lack of marketability (DLOM) are restricted stock studies and IPO studies. The restricted stock studies compare transaction prices in restricted shares with contemporaneous trading prices for unrestricted shares. The pre-IPO studies, on the other hand, according to the author, lead to conclusions that are unsound in theory and in practice. In this article, the author discusses six major flaws in the data that, in the author’s opinion, make the pre-IPO studies’ conclusions totally unreliable for determining discounts for lack of marketability. The two most widely approaches used…
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Top 100 Firms in 2012 Also See Big Jump in Demand for Attest Services, Cash-Flow Forecasting and Management Accounting Today reports in its latest iteration of Top 100 Accounting Firms that the top two fastest-growing niches in accounting services are now international tax services and state and local tax services, edging out business valuation, last year’s fastest-growing niche. Danielle Lee reports (free registration required):
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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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A Valuation Principal Takes Issue With Revenue Ruling 59-60: “Does Analysis of Macroeconomic Conditions Add Credibility to My Opinion of Privately Owned Company Value In My Region?” Rick Warner, ASA, AVA, Principal, Great Lakes Valuations writes that “Most of us as appraisers are familiar with Revenue Ruling 59-60 and its prescription for factors to be considered as part of the valuation of the stock of closely held companies . . . And while I agree with most of what 59-60 has to say, I do have a bone to pick . . . with at least one of the…