Well, it’s finally June, and now that Spring is in the air, our hearts and minds turn to thoughts of….Filing FBARS! In case you forgot, an FBAR is the form you must file by June 30 if you have signature authority over a foreign bank account. It is part of the government’s effort to [...]
Working with companies who have been victims of fraud on a regular basis, the report provided by the Association of Certified Fraud Examiners for 2014, hits the nail on the head. Here is a summary of their findings: Typical organization loses 5% of revenue each year to fraud. Median loss in their study was $145K. [...]
Because the trial court found neither spouse’s expert offered a convincing valuation for a family business, it opted to adopt the liquidation value the company’s CPA proposed. On appeal, the husband contested both the trial court’s classification of the business as hybrid property as well as its valuation. Who generated increase in value? In 1981, [...]
On the weekend prior to the retrial on damages, Apple sought to increase the number of patents for which it could claim lost profits with a sketchy theory that ran counter to the damages model its own experts had constructed earlier. In an emergency motion, Samsung asked the court to preclude Apple’s alternative lost profits [...]
Goodwill in a professional partnership poses unique challenges for valuators and courts, especially in a divorce setting. In a recent Texas case dense with valuation issues, it came down to corporate goodwill. “Logic tells me there is some,” the trial court said, “but it’s probably impossible to quantify.” The finding triggered an appeal. Case Summary: [...]
1. Keeping in mind the big picture. In business valuation, it’s important to keep the big picture in mind and not get lost in complexities. Additional information will be continually introduced throughout the process, and updating figures repeatedly can be costly and time consuming. 2. Close collaboration among the attorney, expert, and the client is [...]
Very often during the valuation process you’ll come across a shareholder loan recorded on the books of the subject business. Your first impulse will be to determine its fair market value, but wait a minute. The question must be asked: “Is this a bona fide loan or is it really equity?” The trouble is, there [...]
In re Civic Partners Sioux City, LLC, 2013 Bankr. LEXIS 4225 (Oct. 7, 2013) After declaring Chapter 11 bankruptcy, the debtor, a developer, asked the Bankruptcy Court to confirm the latest version of its reorganization plan in a “cram down” proceeding. Two key creditors objected, arguing that the plan rested on an improperly low valuation [...]
