Being a firm in the Midwest, we commonly value heavy manufacturing
and industrial-based companies. While we service a wide array
of industries in the valuation space, we have noted a growing trend
in the region for start-up information technology companies.
Therefore, we are often charged with the task of determining values
for these fast-paced companies.
We
recently completed the valuation of one such high-growth IT
company. We were engaged to determine the value of equity of
the subject...
Reduce, re-use and recycle is a tried and true concept when it
comes to going green. Does it also apply to business valuation
reports? It depends. This video blog looks at the three major areas
that must be considered before relying on the value indicated by an
old business valuation:
We
have all had to tackle tasks that just seem to grind and clunk
along without much direction or urgency, which can be frustrating
for all of the parties involved. The same can be true for
business valuations – some engagements may stretch on for months or
years for various reasons. In order to avoid these headaches
(and the potentially increased fees as a result of the valuation
expert having to pick up and put down the project multiple times),
the party engaging the valuation expert and those...
This month's issue of Valuation & Litigation Advisory
Insights includes the following articles:
Growth rate becomes critical to lost profits calculation
In the battle of experts, one weapon simply isn't enouth
Tax Court to valuators: Explain yourself!
Growth rate becomes critical to lost profits
calculation
In commercial cases involving lost profits,
selecting an appropriate growth rate is a critical step in
calculating damages. It’s also one of the most challenging.
Depending on the amount at stake...
I
think we’ve all heard the saying, “There’s no such thing as
something for nothing.” I think it is possible to take that a
step further and say, “There’s no such thing as a lot for
almost nothing.” With the current economic downturn,
consumers have become far more judicious with their purchases and
are doing all they can to squeeze as much out of every dollar spent
as possible. Me personally, I’m still using a flip-phone
without internet, I pretty much only get new clothes on my birthday
or...
In the wake of MF Global Holdings LTD’s bankruptcy, clients,
regulators, and creditors are all attempting to untangle the
defunct investment company’s financial accounts to determine what
remains to be distributed to MF Global’s stakeholders. The
billions of dollars lost by MF Global on its investments in
European sovereign debt left its clients scrambling to salvage any
part of MF Global’s assets to recoup their diminished account
balances. But what about the other secured and...
Management Involvement in Purchase Price
Allocations
It is common for companies to bring in a third-party valuation
expert to value the intangible assets acquired in a business
combination for financial reporting purposes. It is important
to note that even...
“Go
Green!” There is a big push in our office to work in an
environmentally-friendly manner – from turning out the lights after
leaving an area, to recycling pop cans, to our Real Estate and
Construction niche group members obtaining Green Advantage
Commercial/Residential (GACR) certifications. Regardless of
whether global warming is a real or make-believe phenomenon, the
concept of making more efficient use of the resources that we
currently have will only continue to grow as the world’s...
When one considers how the value of an asset will be
determined in a matter, it’s common to think about what method the
appraiser will use or whether discounts may apply. But a critical
factor that may not...
It is
common for companies to bring in a third-party valuation expert to
value the intangible assets acquired in a business combination for
financial reporting purposes. It is important to note that
even when a third-party valuation analyst is involved, a
considerable amount of time will need to be devoted by management
in order to complete the valuation analysis.
The
valuation of intangible assets is not a “hands-off” process for a
company’s management. Actually, purchase price...
Adversarial. Hostile. Inequitable. These are
words commonly associated with traditional divorce
proceedings. Typically, these proceedings include pre-trial
negotiations and settlement procedures which are transacted under
the shadow of the court, subject to the authority of the judge, who
has the power to reject or amend settlements in cases where they
may appear inequitable in the eyes of the court. The
pre-trial process is typically adversarial in nature and business
valuation experts are...
Just awards: Construct a framework when assessing
damages
Almost daily, jurors award huge damages to
plaintiffs. But are these jurors making informed decisions? One of
the most important contributions a financial expert can make...
As
a result of numerous requests from privately-held companies, the
Financial Accounting Standards Board (FASB) recently issued a
proposed update related to goodwill impairment testing.
According to the current goodwill impairment testing rules,
management must first determine whether the fair value of their
company/reporting unit is greater than its book value. The
valuation analysis that must be prepared to support the fair value
determination (and pass auditor scrutiny) is sometimes...
CLEVELAND, Ohio – Skoda Minotti, a CPA,
business and financial advisory firm, has been named a recipient of
The Plain Dealer’s second annual Top Workplaces 2011 award, for the
second year in a row. This honor was given to 132 companies,
nonprofits and agencies in northeast Ohio companies this year,
based strictly on survey results of their employees.
Survey results were gathered using an independent workplace
consultant. Employees were asked to indicate, on a seven-point
scale, how much they...
Did
you hear that? That loud sigh of relief? That was me
exhaling now that it is official that football will be on my TV
screen during Sunday afternoons this fall. Now that teams are
wrapping up the mad scramble to add free agents and resign players,
the football world’s collective thoughts naturally turn to which
team is the favorite to win the NFL championship. At the
beginning of the year, there are always a number of teams that the
pundits believe have a good shot at making a title run. As...
3 ways to communicate with a valuation professional
Nothing's more frustrating than sitting down for a
consultation with a valuation professional and failing to fully
understand the process and how an appraiser arrives at a certain
value. To avoid...Read More >>
We
have all had to tackle tasks that just seem to grind and clunk
along without much direction or urgency, which can be frustrating
for all of the parties involved. The same can be true for
business valuations – some engagements may stretch on for months or
years for various reasons. In order to avoid these headaches
(and the potentially increased fees as a result of the valuation
expert having to pick up and put down the project multiple times),
the party engaging the valuation expert and those...
I
think we’ve all heard the saying, “There’s no such thing as
something for nothing.” I think it is possible to take that a
step further and say, “There’s no such thing as a lot for
almost nothing.” With the current economic downturn,
consumers have become far more judicious with their purchases and
are doing all they can to squeeze as much out of every dollar spent
as possible. Me personally, I’m still using a flip-phone
without internet, I pretty much only get new clothes on my birthday
or...
“Go
Green!” There is a big push in our office to work in an
environmentally-friendly manner – from turning out the lights after
leaving an area, to recycling pop cans, to our Real Estate and
Construction niche group members obtaining Green Advantage
Commercial/Residential (GACR) certifications. Regardless of
whether global warming is a real or make-believe phenomenon, the
concept of making more efficient use of the resources that we
currently have will only continue to grow as the world’s...
The
valuation of intangible assets is not a “hands-off” process for a
company’s management. Actually, purchase price...
As
a result of numerous requests from privately-held companies, the
Financial Accounting Standards Board (FASB) recently issued a
proposed update related to goodwill impairment testing.
According to the current goodwill impairment testing rules,
management must first determine whether the fair value of their
company/reporting unit is greater than its book value. The
valuation analysis that must be prepared to support the fair value
determination (and pass auditor scrutiny) is sometimes...
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