What Should the Valuators Look for in Information Provided
A recent case in federal district court in New Mexico dealt with two motions to exclude a witness under the Daubert rules because the financial statements provided to the BV expert were not prepared under GAAP and were otherwise potentially inaccurate, such as relying on unaudited financial statements.
PPP Loan Proceeds Included in Cash Flows
A new case from the Supreme Court of Vermont affirms a trial court decision that allows the valuator of a business that received PPP loan proceeds to include those proceeds in the cash flows used to determine the value of the business using the capitalized cash flows method.
Offer to Buy 'Nixed' on Appeal
For as long as I can remember, there has been the question of using an offer to buy a subject company to determine the value. The short answer is not normally.
Old Habits Die Hard—or Never—Even at the Tax Court
The Tax Court recently allowed tax affecting for a pass-through entity in the case of Estate of Cecil v. Commissioner. As has been common in recent cases involving tax affecting pass-through entities, the Tax Court went kicking and screaming grudgingly into the decision.
A Chat About ChatGPT
AI is continuing to explode; let's talk about what this could mean for business valuation and whether it is just a passing fancy.
AI Now Helping the IRS
As the effectiveness of AI systems continues to improve, AI has started to gain traction in a wider range of industries not the least of which is the financial sector.
The Body of Knowledge—But Not Just for Business Valuation
Business valuation professionals are all familiar with the business valuation body of knowledge. All of the major BV credentialing organizations adhere to the body of knowledge and generally test new potential credentialed members on it.
Raiders of the Lost Equity
As has been reported, Kroger, in October 2022, announced that it would buy its smaller competitor, Albertsons, for $24.6 billion. The combined companies would own about 5,000 stores, making it the dominant corporate chain in the country.
Artificial Intelligence Is Exploding
ChatGPT has exploded into the public consciousness and aims to revolutionize the way way we look at AI. But what does this mean for valuation?
Is Personal Goodwill Transferrable?
For years, I have contended that there are three types of goodwill: entity goodwill, transferrable personal goodwill, and “pure” (nontransferrable) personal goodwill. Let's take a look at a few cases that explore this idea.
Calculation Accepted in Arizona—Again
In late 2021, we reported on an Arizona case (Larchick v. Pollock) that the Appellate Court remanded to determine whether a calculation of value should be allowed as evidence. Read on to see where that led.
Tennessee Divorce Value for Plastic Surgeon Raises Some Disturbing Questions
In this Tennessee appellate divorce decision, the court affirmed the valuation of the husband’s plastic surgeon practice from the trial court.
Environmental, Social Governance, and Business Valuation
Whether in business valuation or just about anywhere in media, education, webinars and training, or any other form of communication, it is difficult for even a day to go by without hearing something about environmental, social, and governance (ESG) issues in corporate decision-making.
Contingent Liabilities Determine Insolvency?
In the LB Steel, LLC bankruptcy case, a trial was held to resolve the issue of whether the trustee was able to avoid payments made to the parent company during the preference period; find out what happens next.
A Thriller of a Valuation Case
In May 2021, a Delaware Chancery case came down on a shareholder challenge to the fair value of shares of Regal Cinema in a sale to Cineworld. The court arrived at a value based on the deal price less synergies, which actually gave the challengers less than the deal price for their shares.
Getting New People to Like Accounting
Accounting has been facing a new challenge in recent years: a lack of new accounting graduates. Read on for a few takes on this new issue.
Tennessee Court 'Moonshines' on Fair Value
This case revolved around the value to be paid for a one-third interest in a partnership for a business that produces and sells flavored “moonshine” liquor. This case was on its second run through an appellate court. Read on to see where the decision for this spirited case landed.
A Smorgasbord of Valuation Issues
Where to start with the delicious buffet of valuation issues presented in Fair v. Fair , a Louisiana Court of Appeals divorce case. The primary issue in the case was the valuation of the husband’s community estate business known in the case as SIS. The business sells surgical medical equipment GE made.
Court Rules That Artificial Intelligence Cannot Be an Inventor
The U.S. Court of Appeals for the 4th Circuit has just come down with a decision that is certain to be a disappointment to any fans of AI.
Update on COVID-19 Economic Loss and Lost Profits Cases
Take a look at how the aftereffects of COVID-19 are still being felt in the courtroom.
Multiple Choice Questions in Depositions—Agree, Maybe, Disagree?
A new Lexicology article is making waves and BVR Legal Editor weighs in on this thought-provoking issue.
Bankruptcy Court Uses Purchase Price Allocation to Determine Value
In the case of In Re S-Tek 1, LLC, the Bankruptcy Court utilized the purchase price allocation (PPA) as a reference to determine some of the values of specific assets as of the date of the purchase transaction, which led to some interesting results.
Court Rulings Have Big Impact on Fair Value
To sue or not to sue, that is the question! Learn more about a pair of court cases that have made a big impact on fair value as it relates to shareholder dissent suits.
Rule 702 and the Daubert Standard
Recently, another case has raised questions about what is and what is not admissible. In Auto Konnect, LLC v. BMW of N. Am., LLC; 2022 U.S. Dist. LEXIS 42345 *, the court allowed the testimony of a damages expert for the plaintiff who, according to the defendant, was not a CPA.
NFTs—Valuable Art, Worthless Gimmicks, or Something Else
NFTs are all the rage! Almost every day, I run into another article on the subject. In the context of what is going on today relative to NFTs, the token part is a digital unit of data stored on a blockchain that represents a digital asset or a physical asset.