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Stay appraised of all the latest business considerations in the jewelry industry! The report explains how jewelry stores operate, the nature of their revenue streams, value drivers, the industry environment, the risks involved, and other key factors.
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Patent Infringement Damages: Lost Profits and Royalties
If a patent owner can prove another company or party has made, used or sold a product covered by a patent without its permission, the patent owner is entitled, under 35 U.S.C. Section 284, to receive “damages adequate to compensate for the infringement, but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court.” This program focuses ...
Construction Company Valuation
This webinar will provide insight into valuing residential and commercial construction companies. We will cover the approaches and methods that are most commonly used. In addition, we will cover the nuances that one needs to be aware of when valuing these types of companies.
Valuing Manufacturing Companies: Value Drivers and Industry Risk
The U.S. manufacturing sector consists of about 256,000 companies with combined annual sales of about $5.5 trillion, according to First Research. Join veteran appraisers Jay Gibson and Brent McDade as they help you assemble your next value for a manufacturing company. Learn about the methodology selection and why it is important to report your opinions using the vernacular of the manufacturing industry. Learn to better defend the procedures and judgments that comprise your valuation and ...
Application of the Cost Approach to Valuing Identifiable Intangible Assets
Join Robert Reilly and Nathan Novak for this engaging webinar on the common types of intangible assets, the most common reasons to value intangible assets, and the generally accepted intangible asset valuation approaches.With a focus on the cost approach methods to value intangible assets, particularly contributory intangible assets, this program will describe the specific procedures for quantifying each of the intangible asset cost component and for identifying and measuring each of the intangible asset obsolescence ...
Forensic Evidence: 43 Techniques and Case Studies for a Better Valuation
The evidence is in. Forensic skills are not only valuable, but also critical, to valuation professionals wanting to distinguish themselves in a commoditizing industry. Join Darrell D. Dorrell for deep dives into specific forensic techniques as he demonstrates their applicability in valuation assignments with practical examples. Forensics are ubiquitous to valuation-specific applications including rebuttals, financial statement analysis, and guiding counsel. Many of these techniques are not only more robust, but also more efficient and will ...
A Compensation-Based Method of Valuing Small, Closely Held Businesses
Often, individuals invest in small, closely held businesses to provide themselves with a higher-paying job than they could receive if they remained an employee. None of the currently accepted valuation methods, income, market, or asset, takes this fundamental motivation for higher compensation into consideration. The purpose of this paper is to describe those conditions in which owner compensation can create intangible value in a small, closely held business and suggest a practical valuation method when ...
The Entrepreneur's Cost of Capital: Incorporating Downside Risk
The capital asset pricing model (CAPM) suggests that an investor's cost of equity capital is determined by beta, a measure of systematic risk based on how returns co-move with the overall market. We propose to replace beta with downside beta, a measure more consistent with investors' perception of risk. Recent empirical evidence suggests that downside beta better captures the risk-return relationship in both emerging markets and developed markets. Grouping companies into industries by two-digit Standard ...
Business Valuation Cases in Brief
Page 87 Page 87 June 2004 June 2004 Business Valuation Cases in Brief by John J. Stockdale, Jr. In Leo J. Polack v. CIR, No. 03-1295 (8th Cir. May 3, 2004), the U.S. Court of Appeals for the Eighth Cir- cuit affirmed the Tax Courts decision not to consider the post-valuation date operations of the company in determining the value of closely held stock on the ear- lier valuation date. The Circuit Court concluded ...
The Long-term Relationships between Capital Expenditures and Depreciation and Long-term Net Working Capital to Sales across Industries
This study empirically examines the long-term relationships between Capital Expenditures (CAPX) and Depreciation (DEPR) and Net Working Capital (NWC) to Sales. The CAPX to DEPR and NWC to Sales ratios are frequently used in capitalized earnings and discounted cash flow models. Previously, McConaughy and Bordi documented that CAPX exceeds DEPR expenses in the long-term. Using data from Capital IQ, this article expands on that finding by examining the CAPX to DEPR and NWC to Sales ...
Architecture and Engineering Firm Valuations: Issues to Consider When Selecting Guideline Public Companies
The biggest advantage to using the market-based approach to value an architecture or engineering firm is the access to financial and market data. But the disadvantage is the dramatic size discrepancy between the guideline public companies and the average ...
Trade Associations Can Be Excellent Sources of Compensation Data
The biggest problem in developing reasonable compensation for business owners involved in a divorce is finding usable and relevant data to back up your opinion. This is important because reasonable compensation is often the most contentious issue in the c ...
Business Valuation Year in Review 2017
It was another eventful year for the business valuation profession, and here’s a wrap-up of notable developments of 2017.
Failure to consider shareholder loan has no impact on property division
Issues in this marital dissolution were the value of husband’s electrical contracting business, Romey Electric, and the proper treatment of a shareholder loan husband made to the wholly owned S corporation.
Troutman v. Troutman
1991 Del. Fam. Ct. LEXIS 39 (Del. Fam. Ct. Jan. 22, 1991). Judge Keil.
Valuation Within Range of Expert Testimony Upheld
Husband received Scheppelmann Electric as a gift from his father about two years after the parties were married.
A Business Appraiser Should Have Been Retained to Establish the Value of Businesses
The Tennessee Court of Appeals affirmed the lower court’s decision not to place a value on two businesses operated by the husband.
Market Comparables Prove More Persuasive Than Income Approach for Electric Company
Divorce court prefers market approach to income approach for valuation of electrical company, finding market data supplied sufficient comparables.
Buy-sell price
The primary issue in this case centered on 20 shares of stock Darrell Dieger (appellee) bought during the marriage. Darrell had been employed with Packard Electric (PE) and in 1994 he was of ...
Ex-wife questions court's value of husband's business
Trial court's valuation of husband's 55% interest in business upheld because it was within the range of the values testified to by the parties' experts.
Future Profits and 'Lost Going Concern Value' Denied Where Damages Are Unforeseen and Uncertain
One issue in this breach of contract case was the calculation of future profits that would have been expected if not for the breach.
Employee Compensation and Amount of Competition Considered in Lost Profits Analysis
The California Court of Appeals, 6th District, affirmed the lower court’s denial of damages in this breach of fiduciary duty and intentional interference with economic advantage case.
Court corrects double counting of husband’s income
The issue in this marital dissolution was the value of husband’s telephone equipment business, TechniCom, Inc.
Asset approach valuation upheld, but speculative tax consequences should not be considered
This case comes to the appellate court from the Iowa District Court where a dissolution of marriage decree was entered.
Court Disallows Built-In Capital Gains Discount
At issue is whether the estate of Welch is entitled to discount the value of stock for built-in capital gains taxes, causing a deficiency of $59,987 in federal estate taxes.
Expert’s Solid DCF and Industry Research Sway Court
Court discredits respondent expert’s capitalization of earnings calculation and market-based analysis, noting “severe deficiencies” and instead adopts petitioner expert’s valuation but applies DLOM to entire equity value, not just goodwill.