Tales From the Trenches Episode No. 2—Who Wrote the Report?
In a very contentious litigation, I was called to testify as to the reasonable compensation for a receiver. A limestone quarry company had been involved in a family dispute over ownership, and the court had appointed a receiver to operate the company and conduct a sale of the company.
Multiple Lines of Business—Let Me Count the Ways
Recently, I read an article from McKinsey titled “How CEOs Are Turning Corporate Venture Building Into Outsize Growth." While the article and survey are about what the title indicates, it reminded me of a broader valuation issue: What do I do when a business I am valuing has multiple lines of business?
NACVA Creates New 'Advisory Briefs' and Issues the First One on 'The Use of Artificial Intelligence and Machine Learning'
Parnell Black, NACVA’s co-founder and CEO, has announced that NACVA has issued its first Advisory Brief on “The Use of Artificial Intelligence and Machine Learning.” This is the first such AI advisory from the major business valuation organizations.
Tales from the Trenches Episode #1—Separation of Witnesses
Experienced testifiers will often have more experience in a courtroom than the attorney(s) with whom they are working. And even some experienced attorneys do not always pay attention to the rules.
Tales From the Trenches
“Tales From the Trenches” is a new blog series. The intention is to post periodically, hopefully monthly. The purpose is to relate some of the experiences I have had during my more than 45 years of testifying as a valuation and forensic expert witness.
American Society of Appraisers (ASA) 2024 International Conference
I had the pleasure of attending the 2024 ASA International Conference in Portland, Ore., September 15 to 19. This was my first time to visit Portland, Ore., and I found it to be a very pleasant and attractive place to be. The conference was held at the Downtown Hilton in Portland.
Update on Artificial Intelligence—Superconvergence
Get a look at some of the futuristic concepts discussed in the book Superconvergence and look at how AI factors into all of it.
Crowd Strike Is Cloud Struck
Take a look back at the CloudStrike IT meltdown.
Several Cases Have Now Entered the Covenant Not to Compete Fray
By way of background, on April 23, 2024, the Federal Trade Commission (FTC) issued a final rule to, in their words, “ promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.”
The Deal Price and Synergies
A bungled sales process, dumping a board member from a key investor, faulty methodologies, and lack of quantification of synergies? These all occurred in one case! Read on to see how it all turns out!
NFL Sunday Ticket Verdict Overturned—Rule 702 Applies to Exclude Witnesses
In a surprising decision in the NFL Sunday Ticket class action litigation the Court grants the Defendants’ motion for judgment as a matter of law. The judgment of the Jury after the trial was in favor of the Plaintiffs.
The FTC Has Proposed Banning Most Noncompete Agreements
For the supposed purpose of fostering competition in the labor market, the Biden administration’s Federal Trade Commission is proposing to ban most noncompetition agreements.
Thoughts From Stacy Collins on the Stout Acquisition of FRA
We recently posted the news that Stout has acquired Financial Research Associates (FRA). Jay Fishman is the founder and leader of FRA, but there are other very talented people in FRA who are also making the move.
Stout Acquires Financial Research Associates Inc.
Stout has acquired Financial Research Associates Inc. (FRA) for its Valuation Advisory Group.
Is the Delaware Chancery Court a Guardian or a Bully?
Two recent cases have cast the Delaware Chancery Court into the spotlight. For as long as I can remember (and I am 78), corporations have flocked to Delaware to incorporate but is that changing?
Supreme Court Unanimously Includes Life Insurance Proceeds Intended for Redemption of a Shareholder in the Value of the Corporation in the Estate
The U.S. Supreme Court ruled unanimously on June 6, 2024, that “[a] corporation’s contractual obligation to redeem shares is not necessarily a liability that reduces a corporation’s value for purposes of the federal estate tax.” Let's take a closer look at this ruling.
AI Update: Slowing Down AI—The Internet Is Too Small
Is the AI gold rush slowing down?
Whose Responsibility Is Causation?
Our friends from Faegre Drinker have not only once again come up with a great article, but also got us thinking about an issue of importance to our FVS brethren and sisters. The issue is causation in damages cases.
Volunteering to Help Grow the Business Valuation Profession
You have heard and read a lot recently about the staffing issues the business valuation profession faces. Where are the people who will lead and staff the profession in the future going to come from?
Bias in Valuations
A lot has been written and said recently about bias in valuations. Judges are commenting on it more frequently, and others within the BV profession are noticing and commenting on it. A 44-year BV veteran weighs in.
Fair Market Value or Shareholder Agreement Value in Rhode Island Divorce Case
In this Rhode Island divorce case, the State Supreme Court affirmed the general magistrate’s decision to rely on the value the company’s shareholder agreement determined rather than the fair market value of the entity as presented by the wife’s expert.
Rule 702: Changes? What Changes?
The new version of Rule 702 went into effect on Dec. 1, 2023. Now we have our first look at how the U.S. circuit courts (at least one of them) might look at the changed rule.
Update on AI
The issues regarding the shake up at OpenAI settled down, seemingly, as quickly as they fired up. The parent not-for-profit governing organization replaced most or all of its board of directors, but it remains to be seen what structural changes will ultimately result from shake up.
What to Do When You Have Too Little Information
A recent California appeal of a divorce case demonstrated a proper way of managing a situation where the valuation analyst had received insufficient information to allow for a conclusion of value as to an asset or assets.