Articles From Brisbane Consulting Group

A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes.

Under the market approach, the value of a business is derived from comparisons between the subject company and transactions involving similar businesses.

In Sipko v. Koger, Inc., the New Jersey Supreme Court found that a discount for lack of marketability (DLOM) was inappropriate, noting the “defendants’ bad-faith behavior throughout this 15-year litigation.”

Pursuant to a marital termination agreement from 2008, the husband in Redleaf v. Commissioner deducted $51 million in deferred cash payments to his ex-wife. The U.S. Court of Appeals for the Eighth Circuit Court affirmed that the payments weren’t deductible as alimony under the tax law that was in effect at the time the agreement was executed.

Attendees learned from the team of experts as they walked through real-world examples of the entire merger and acquisition process from valuation, buyer research and drafting of the offering materials, negotiation of key deal terms and execution of the definitive agreement, to closing and post-closing activity.

Proposed amendments to the Federal Rules of Evidence (FRE), expected to take effect in late 2023, may affect the admissibility of expert testimony.

The usual methods of calculating lost profits may fall short when a start-up is involved.

Valuation experts commonly use the reasonable royalty method to measure damages in patent infringement cases. When a royalty base is the “entire market value,” an expert may apportion it among the product’s infringing and noninfringing components.

Read the Brisbane Consulting 2023 Federal Tax Rate Guide here.

In M&A transactions, disputes sometimes arise over contractual purchase price adjustments, representations and warranties, earnout provisions, or alleged misrepresentations by the seller.