Spring 2012
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| How may we help you? — Defining a valuation assignment | |
 | Many business scenarios require an estimate of the company’s value. But without a ready market to trade private ownership interests, any estimate is still a matter of professional opinion — not fact. So it’s important to start every appraisal with a clear, concise definition of the assignment’s parameters. This article discusses issues to address before contacting an appraiser, and why it’s important to define a valuation’s specific purpose; a “recycled” valuation can be highly inappropriate. A sidebar looks at what’s involved in an attorney-appraiser relationship. Read More |
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| Playing many roles — Reasonable compensation keeps appraisers busy | |
 | It’s an issue that comes into play in divorce, shareholder disputes and tax cases. It’s also a common financial statement adjustment appraisers make when valuing a business. The issue, of course, is reasonable compensation. This article examines the wide variety of factors appraisers weigh when determining reasonable compensation for a specific business owner. It offers a fictitious case study involving a divorce proceeding, where owners’ compensation calculations can dramatically affect property settlements and support payments. Read More |
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| Plaintiff wins case but still loses profits | |
 | When a Wall Street trader-turned-fitness-guru discovered that a couple of her employees had stolen her proprietary information to set up a competing business, she “successfully” sued — yet failed to recover the lost profits she sought. This article illustrates the importance of proving not just liability but also damages. It also shows how a financial expert can make or break a case. Read More |
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| The fraudulent illusion of early revenue recognition | |
 | Improper revenue recognition has long accounted for a substantial portion of financial statement fraud. By simply recording revenue early, a dishonest business seller trying to inflate the sale price or an employee under pressure to meet financial benchmarks can create the illusion of greater than actual profits. This article lists a number of ways early revenue recognition occurs and discusses techniques that experts can use to look for it. Read More |
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This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2012 • EXPsp12 | |