Today! Free AICPA event on portfolio valuations
Today, June 28, the AICPA will debut the first in what will be a recurring event: the Portfolio Valuation Forum.
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 ...
New AICPA event on portfolio valuations
On June 28, the AICPA will debut the first in what will be a recurring event: the Portfolio Valuation Forum.
Connelly v. United States
The importance of this case was that the 8th Circuit’s decision to affirm the lower court and IRS’ inclusion of life insurance proceeds in the value of the corporation for which decedent’s stock was redeemed. This contradicted the decision of the 11th Circuit in Estate of Blount that 26 C.F.R. § 20.2031-2(f)(2) precluded the inclusion of life-insurance proceeds in the corporate value when the proceeds were used for a redemption obligation.
8th Circuit Affirms District Court—Includes Life Insurance Proceeds in Value of Redeemed Shares
The importance of this case was that the 8th Circuit’s decision to affirm the lower court and IRS’ inclusion of life insurance proceeds in the value of the corporation for which decedent’s stock was redeemed. This contradicted the decision of the 11th Circuit in Estate of Blount that 26 C.F.R. § 20.2031-2(f)(2) precluded the inclusion of life-insurance proceeds in the corporate value when the proceeds were used for a redemption obligation.
Golock Capital, LLC v. VNUE, Inc.
The plaintiffs sued for breach of obligations on convertible promissory notes issued to the defendant. The defendant admitted it had not repaid the loans but contended that the rates of interest on the loans were “criminally usurious” and were, therefore, void. Following a bench trial, the U.S. District Court (New York) found that the interest rates were not usurious and ruled in favor of the plaintiffs, including an award for attorneys’ fees.
U.S. District Court (New York) Rules Interest Rates on Loans Are Not Usurious
The plaintiffs sued for breach of obligations on convertible promissory notes issued to the defendant. The defendant admitted it had not repaid the loans but contended that the rates of interest on the loans were “criminally usurious” and were, therefore, void. Following a bench trial, the U.S. District Court (New York) found that the interest rates were not usurious and ruled in favor of the plaintiffs, including an award for attorneys’ fees.
BV News and Trends May 2023
A monthly roundup of key developments of interest to business valuation experts.
Notable takeaways from the NYSSCPA BV conference
BVWire attended last week’s annual New York State Society of CPAs’ Business Valuation and Litigation Services Conference, and—as usual—some very interesting and useful information was presented.
Fair value credential to be sunset, conference speakers say
The news that the Certified in Entity and Intangible Valuations (CEIV) credential was being discontinued stunned some attendees at the ASA Fair Value Spring Conference in New York City on May 4.
More news from the ASA Fair Value Conference
In addition to the news that the CEIV credential was being discontinued (see previous item in this issue), here are some other takeaways from the ASA Fair Value Spring Conference in New York City on May 4.
Global BV News: New study of inflation and valuation in German firms raises concerns
A new paper finds that company-specific inflation rates assumed for the steady state are lower than the expected general inflation rates.
Tomorrow: ASA New York Fair Value Conference
BVWire is looking forward to attending the ASA Spring Fair Value Conference in New York City tomorrow, May 4.
City of Fort Collins v. Open Int’l, LLC
In a breach of contract suit concerning failure of vendor to deliver software, the court considered and ruled on motions to exclude certain expert witnesses. The court denied most motions while granting some motions in part.
ES NPA Holding, LLC v. Comm’r
The Tax Court ruled that the class C units were a profits interest because, when applying the fair market value of the LLC at the time of receipt, the partner would not receive any proceeds from a liquidation at that time. Any proceeds in excess of fair market value would be speculative. No accuracy penalty was appropriate either.
On Liquidation Tax Matters, Partner Would Not Receive Any Proceeds, Interest Received Would Be Nontaxable Profits Interest
The Tax Court ruled that the class C units were a profits interest because, when applying the fair market value of the LLC at the time of receipt, the partner would not receive any proceeds from a liquidation at that time. Any proceeds in excess of fair market value would be speculative. No accuracy penalty was appropriate either.
U.S. District Court (Colorado) Rules on Motions to Exclude Testimony of Expert Witnesses
In a breach of contract suit concerning failure of vendor to deliver software, the court considered and ruled on motions to exclude certain expert witnesses. The court denied most motions while granting some motions in part.
May kicks off BV conference season!
Flowers bloom in May and so do business valuation conferences—and most of them have a virtual option.
NFT Valuation: What You Need To Know
In 2021, nonfungible token (NFT) prices drastically increased and then dropped substantially just over year later. These digital assets can be difficult to grasp, but they now play a role in personal investment portfolios and on company balance sheets. As a result, valuations of digital assets will be needed for issues such as divorce litigation, estate valuations, bankruptcy litigation, fair value measurements, and more. This presentation will demystify these investments and teach attendees how the ...
Financial Expert Guide for Family Law Judges and Attorneys, National Edition
April 2023 PDF, Softcover (413 pages)
John Tatlock, Kevin Yeanoplos, Ron Seigneur
Business Valuation Resources, LLC
Celebrity poses and gestures as protected trademarks
Celebrities are famous for being poseurs, but can their body movements be protected as a trademark, subject to damages for infringement?
Global BV News: New pecking order in celebrity brand value in India
Ranveer Singh has leapfrogged over Virat Kohli to sit at the top of list of most powerful celebrity brands in India, according to Kroll’s “Celebrity Brand Valuation Study 2022: ‘Beyond the Mainstream.’”
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends March 2023
Business valuation news from a global perspective.
Have you tried Abbott’s passive appreciation calculator?
In last week’s BVWire, we mentioned that Dr. Ashok Abbott (West Virginia University) has developed an online application that produces a passive appreciation factor on a national level for businesses in the retail sector.