Lost profit damages analysis offers a natural extension for business appraiser skills
Business appraisers often find themselves in a litigation setting. After all, much of the work that we do has two distinct "sides," whether it is a divorce, a shareholder dispute, or a matter before t ...
Conduct valuations with guiding fundamental principles
"The Grapes of Value: Organizing Principles of Business Valuation," Z. Christopher Mercer, Valuation Strategies , November/December 1999, pp. 20-25, 48. Reviewed by Russell T. Glazer, CPA, Part ...
Yes, you can calculate precisely the present value of a growing annuity
On page 276 of Christopher Mercers text, Quantifying Marketability Discounts , Mr. Mercer states, "[W]e know of no precise formula to calculate the present value of a growing annuit ...
Physician goodwill varies by practice - part II
In the September issue of BVU, Kumura expressed a concern that the present value of the future tax savings inuring to the benefit of the buyer overstates the value of goodwill. However, sinc ...
FASB releases report on business combinations issues and presents concepts for present value measures
At its August 21, 1996 meeting, the Financial Accounting Standards Board (FASB) decided to add to its technical agenda a project on accounting for business combinations. The objective of the project ...
Court Takes Position on Trademark and Unpatented Technology Values
The issues in this case pertain to the acquisition of Carnation Co. by Nestle Holdings Inc.
'Safe Harbor Rate' Not Adequate to Present Value Note for Gift Taxes; Circuits Disagree on Issue
Taxpayer transferred assets in return for a promissory note bearing interest at the then current "safe harbor" interest rate, which was below the prevailing market rate.
Nestle Holdings v. Commissioner
At issue is the fair market value of Carnation's inventory, trademarks and trade names, unpatented technology, and goodwill and going concern for federal income tax purposes.
Schusterman v. United States
At issue is the taxpayers arguement that their use of the six percent safe harbor rate under I.R.C. 483 prevents the IRS from using the prevailing market interest rate to determine the dis ...