Business Valuation & Litigation Support E-Newsletter: January 2012

Friday, January 27, 2012 by Sean Saari, CPA/ABV, CVA, MBA

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

Intangible Assets – If I Cannot See Them, What Are They?

“All arguments concerning existence are founded on the relation of cause and effect.” - David Hume

In the quote above, David Hume, a famous philosopher, says that the basis of existence is founded in...

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Qualified Plan Fiduciary Liability Can Trap the Unwary Advisor

Thursday, January 26, 2012 by Ted Ginsburg, CPA, JD

Tax qualified retirement plans are required to hold employer and employee contributions in an irrevocable trust, which is separate from the employer’s funds.  ERISA, which governs these programs, creates various types of legal liability for a plan’s fiduciaries.   Department of Labor penalties and litigation from plan participants can arise, and can be brought against an individual fiduciary.  The issue of who is or is not a fiduciary is not determined solely by a person’s title.  

ERISA’s...

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Intangible Assets – If I Cannot See Them, What Are They?

Thursday, January 12, 2012 by Sean Saari, CPA/ABV, CVA, MBA

“All arguments concerning existence are founded on the relation of cause and effect.” - David Hume

In the quote above, David Hume, a famous philosopher, says that the basis of existence is founded in cause and effect.  Cause and effect is simple to picture for tangible objects – if I cause my finger to type a letter on the keyboard, that letter shows up on my computer screen.  It becomes a little more difficult to picture cause and effect with intangible things – if I greet a stranger on the...

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Lessons Learned from Valuing Information Technology Companies

Friday, January 6, 2012 by Joseph Yusz, CPA

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...

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Valuation Reports – Reduce, Re-Use, Recycle? (video)

Tuesday, January 3, 2012 by Sean Saari, CPA/ABV, CVA, MBA

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:

  1. Changes in the Company, Economy and Industry
  2. Standard of Value
  3. Level of Value



Wondering if your valuation report can be reused?
Post a comment below or contact our Valuation & Litigation Advisory Services Group at 440...

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Business Valuation & Litigation Support E-Newsletter: December 2011

Thursday, December 29, 2011 by Bob Ranallo, CPA/ABV, JD, CVA, CFF

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

Smooth Sailing: How to Make Sure Your Business Valuation Engagement Runs Smoothly

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...

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Smooth Sailing: How to Make Sure Your Business Valuation Engagement Runs Smoothly

Thursday, December 15, 2011 by Sean Saari, CPA/ABV, CVA, MBA

Business ValuationWe 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...

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Recovering from Identity Theft (Part 1 of 2)

Tuesday, December 6, 2011 by Bob Coode, CSA

You've read about it, and you thought it would never happen to you. But suddenly your bank account is empty, your credit card bills are through the roof, and you're getting late notices for accounts you don't own. Your identity has been stolen. What now?

Time is money

To minimize your losses, act fast. Contact, in this order:

  • Your credit card companies
  • Your bank
  • The three major credit bureaus
  • Local, state, or federal law enforcement authorities

Your credit card companies

Credit card companies are...

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Not-for-Profit Organizations Should Consider Formalizing their Executive Compensation Process

Thursday, December 1, 2011 by Ted Ginsburg, CPA, JD

Not-for-profit organizations face many challenges in attracting and retaining executive talent. Compensation programs (types and amount) that can be offered to these executives are much more limited than those which are offered to private sector executives.  Many organizations do not have in-house capabilities to analyze and propose programs that provide competitive compensation. Donors may perceive that executives are overpaid, and are therefore the organization is providing fewer services....

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Protect Yourself Against Identity Theft (Part 1 of 2)

Thursday, December 1, 2011 by Bob Coode, CSA

Whether they're snatching your purse, diving into your dumpster, stealing your mail, or hacking into your computer, they're out to get you. Who are they? Identity thieves.

Identity thieves can empty your bank account, max out your credit cards, open new accounts in your name, and purchase furniture, cars, and even homes on the basis of your credit history. If they give your personal information to the police during an arrest and then don't show up for a court date, you may be...

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Business Valuation & Litigation Support E-Newsletter: November 2011

Wednesday, November 30, 2011 by Sean Saari, CPA/ABV, CVA, MBA

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...

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Buyer Beware – Quick-Fix Business Valuations May Result in More Harm than Good

Friday, November 18, 2011 by Sean Saari, CPA/ABV, CVA, MBA

Buyer Beware - Quick-Fix Business Valuations May Result in More Harm than GoodI 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...

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Valuing Distressed Company Debt

Friday, November 18, 2011 by Joseph Yusz, CPA

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...

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Employee Dishonesty Insurance – Do You Sleep Well Without Having It?

Tuesday, November 8, 2011 by Frank Suponcic, CPA, CFE, CFF

Corporate downsizing compromises internal controls. 9% unemployment. Record residential foreclosures. 50% of marriages are failing.  Employees are facing increased pressure of addressing increased healthcare costs and the costs associated with taking care of aging parents. And yet, there are still many others that fantasize about what it would be like to live the life of the “rich and famous.” For business owners, today’s work environment is a challenging one.

As a result of many pressures, at...

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Guard Your Wallet and Protect Your Identity

Tuesday, November 8, 2011 by Frank Suponcic, CPA, CFE, CFF

If this has ever happened to you then you know first hand how traumatic the loss can be.  The loss of cash. No credit cards. I can’t make debit card purchases.  Not my driver’s license!  Oh no, and the social security card??  Not my child’s baby pictures??? My paycheck? And the list goes on and on.   Think for a minute what you think is in your wallet.  Here one minute, gone the next.

I know first hand as I’ve been carjacked and lost my wallet and recently a family member had her wallet fall into...

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Business Valuation & Litigation Support E-Newsletter: October 2011

Sunday, October 30, 2011 by Dan Golish, CPA/ABV, CVA, CFF

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

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...

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IRS Offers New Correction Program for Misclassification of Employees

Tuesday, October 25, 2011 by Ted Ginsburg, CPA, JD

The issue of whether a worker should be treated as an employee or an independent contractor has been an area of significant IRS interest for decades. The IRS has the ability to assess significant employer penalties for failure to withhold employment and income taxes on a worker who should have been treated as an employee.

 

If an employer is faced with this issue upon an IRS examination, the IRS will typically offer to settle the penalties at a discounted rate under Internal Revenue Code (IRC)...

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Blackberry Outages Outrage Customers

Wednesday, October 19, 2011 by Brian Rosenfelt

If you have a Blackberry device, last week was not a good week. Last Wednesday (October 12th), Research in Motion, the maker of Blackberry smartphones, informed subscribers in the Americas that they may experience “intermittent service delays”. From the reaction and feedback we received from many of our clients, I would say that’s an understatement.

The reason for the problem in the U.S. stems from the vast usage of Blackberry devices all over the world, and the backlog that has built up over...

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Beware of Mortgage Release Scam: You Cannot Release Your Mortgage Yourself

Tuesday, October 11, 2011 by Frank Suponcic, CPA, CFE, CFF

Residents should be on the lookout for anyone soliciting them that “there is a little known loophole that allows them to release their own residential mortgage.”  Residents may be duped in person or know of someone that has paid for such mortgage relief assistance. This is not a telephone scam. 

An individual has shared with me just how he can save people from foreclosure and further advised that he will be filing such documents in the future as he has several clients waiting for his services....

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Valuation Reports – Reduce, Re-Use, Recycle?

Tuesday, October 11, 2011 by Sean Saari, CPA/ABV, CVA, MBA

Reduce Re-Use Recycle“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...

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