Many business valuation cases work their way through the courts each year, but only some of them have a significant impact on the profession. Here are some important excerpts from those cases. 1. Excess earnings method is alive and well. Although the excess earnings method has its critics, it is in use and it stands [...]
Judge Laro is a U.S. Tax Court Judge and is the author of the seminal Mandelbaum decision. Here is what he had to say at a recent luncheon moderated by 2 valuation experts. Tax Court facts. The moderators asked Judge Laro to situate the Tax Court in the U.S. legal system. The judge obliged and [...]
The fate of law firms depends on their ability to recognize that mere growth is not the key to success. This is the conclusion of the “2014 Report on the State of the Legal Market” published by the Center for the Study of the Legal Profession (Georgetown University Law Center) and Thomson Reuters Peer Monitor. [...]
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. [...]
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 [...]
Mediation is one of the best ways to handle family law disputes. Rather than getting involved in a never-ending court battle, you can save time, money and help preserve family relationships. Forensic accountants can be a crucial part of this process as finances are often one of the most disputed areas in family law matters. [...]
