Business Valuation Articles
Posted by William P. Allen on August 04, 2020
The Financial Accounting Standards Board has issued several major updated accounting standards in recent years, and the implementation process is underway.
Posted by Douglas Sosnowski on July 07, 2020
When valuing a business interest, it’s critical to examine organizational documents.
Webinar Slides Available: How Legal and Financial Professionals Will be Dealing With Business Valuations Going Forward
Posted by Paul M. Herlan on May 28, 2020
Download the slides from our webinar presented to the New York Chapter of the American Academy of Matrimonial Lawyers: A Going Concern: How Legal and Financial Professionals Will be Dealing with Business Valuations Going Forward.
Posted by Douglas Sosnowski on May 26, 2020
The cost (or asset-based) approach specifically focuses on a company’s balance sheet. Learn how this approach works and when it might be an appropriate method of valuation.
Posted by William P. Allen on May 12, 2020
Limited liability companies (LLCs) sometimes offer a unique form of equity-based compensation known as “profits interests,” but these awards don’t convey the full rights of ownership. It’s important to understand the specific terms of an award and how a unit’s terms and conditions affect the method of valuation.
Posted by Douglas Sosnowski on May 04, 2020
When valuing a business, experts must put themselves in the shoes of hypothetical buyers and sellers and consider only what was “known or knowable” on the valuation date. In a recent U.S. District Court case, the estate filed a tax return based on the exchange price of bank stock before the company disclosed a devastating fraud scam.
Posted by William P. Allen on May 04, 2020
The U.S. Tax Court recently ruled that a tax-free merger of two family-owned manufacturing businesses resulted in a taxable gift to the sons because the parents undervalued their company. On appeal, Cavallaro was remanded to the court to allow the taxpayers to prove that the tax deficiency was based on an “arbitrary and excessive” valuation performed by the IRS expert.
Posted by Douglas Sosnowski on April 28, 2020
In mergers and acquisitions (M&As), it’s often said that the combined entity is more valuable than the sum of its parts. The reason is related to a concept known as “synergies,” which are benefits to a specific strategic buyer.
Posted by Louis Cercone, Jr. on April 14, 2020
The treatment of business goodwill in divorce cases varies from state to state. Courts in more than half of the states, including Florida, make an important distinction between personal and enterprise goodwill.
Posted by Douglas Sosnowski on March 02, 2020
Equity-based compensation can help businesses attract and retain qualified employees. Limited liability companies (LLCs) can issue a special kind of equity-based compensation known as a “profits interest,” however, a business valuation professional is essential to determine the value of these ownership interests for tax and accounting purposes.