What is the E-2 Treaty Investors Visa?
If you are a foreign national looking to make an entry to the US market, an E-2 Investors Visa could be right for you. If your home country has a treaty with the US, (list found here), the E-2 Visa allows you to invest capital ($50,000+) and establish a business in the US. The E-2 Visa also grants you a 2 year stay, which can be renewed. According to the www.uscis.gov website in order to qualify for the E-2 Visa you must: Be from a treaty country Invest, or have invested capital into the US and be seeking to enter the…
Does the Size Effect Still Exist? New Analysis From Pratt and Grabowski
In the upcoming fifth edition of their essential book, Cost of Capital: Applications and Examples, Shannon Pratt, FASA (Shannon Pratt Valuations), and Roger Grabowski, FASA (Duff & Phelps), reveal new analysis that examines the existence of the size premium. Background. A company’s size is one of the most important elements of risk to consider when developing cost of equity estimates for valuation purposes. Over the long haul, small company stocks have proved to be riskier than large company stocks. This makes sense because larger companies have certain advantages over smaller companies. Therefore, investors require a greater return on investment in…
Do I Need a Forensic Accountant?
Do I need a forensic accountant? This is a question we get asked on a regular basis. While there is no definitive answer, here are some markers that might indicate the need of a forensic accountant. Is there a business involved? Retirement accounts? Suspected hidden income? Community property? Fraud? If any of those bullet points apply to you, it’s likely that a forensic accountant could help. Typically if child support is the only calculation that you need made, your attorney should be able to handle that with the Dissomaster. As forensic accountants, we always work under the direction of an…
Ibbotson and the ERP Take Spotlight in Divorce Case
Alexander v. Alexander, 2013 Mich. App. LEXIS 1490 (Sept. 10, 2013) (slip op.) It is no mystery that financial experts rely on the Ibbotson SBBI Valuation Yearbook for their valuations, but what makes a recent divorce case intriguing is how two experts used the same authority to argue for a vastly different equity risk premium (ERP). Cap rate gaps: The parties contested the value of a small, agriculture-based business that the husband owned and operated during the marriage. Three experts appeared in front of the court: the spouses’ appraisers and a third-party valuator whom the court appointed because it found…
Most Accounting Expert Witnesses are CPAs
A recent listing of accounting expert witnesses mentioned in court opinions or decisions in 2013 reveals that 88% were CPAs. The listing, which is “not exhaustive and only for informational purposes,” includes 189 forensic accounting expert witnesses with multiple credentials. As for the prevalence of other credentials, 31% were certified in Financial Forensics, 29% had the ABV credential, 16% were CVAs, 16% were CFEs, and 10% of witnesses on the list were ASA. Google+
Valuation Land Mine: Avoid it Like The Plague
Proceed with caution when valuing a business arrangement or transaction between a healthcare entity and physicians. If the valuation includes a consideration of anticipated referrals, the hospital or healthcare system making payments under the arrangement could face huge penalties for making illegal kickbacks to physicians. A recent jury award illustrates this trouble spot. Devastating penalty: The District Court of South Carolina has just ordered a hospital to pay $237 million for violating the False Claims Act. Earlier this year, a jury found the hospital guilty under the Stark Law and False Claims Act of providing illegal kickbacks to a group…