Misconceptions about Fraud in the Family Business

A family owned business likes to think that it is immune from fraud and that their trusted employees including family members would never steal from the business. Sadly, family businesses are not exempt from fraud and to think that your company is safe from this type of activity can put your business at significant risk for embezzlement and other acts of asset theft. The most common misconceptions related to family business fraud are: [Read more…]

Business Valuation Seminar Fraud

Business owners and their attorneys need to beware of companies that offer business valuation and consulting services seminars. These seminars are usually a closed invite only event that will snare a few business owners who are anxious to sell their business. The key is to convince  a business owner that his or her business is worth  much more than it is and in the process to charge a large fee  for a  written report to support this fictitious number. [Read more…]

Key Factors That Affect Business Value

Most business owners never think about the value of their business until they are ready to sell and retire. At this stage it is often too late to enhance the value of the company . The following key factors affect the sale value of most businesses. [Read more…]

Tennessee Supreme Court Adopts Modern Valuation Methods For Dissenting Shareholder Disputes

In a case involving dissenting shareholders forced out of a closely held corporation in Nashville, the Tennessee Supreme Court has overruled its prior case law and adopted a standard that will allow trial courts to use modern methods such as discounted cash flow to determine ” fair value” of dissenting shareholders stock. [Read more…]

Exit Strategy : Employee Stock Ownership Plan

One way for business owners to transition their ownership to employees and to receive liquidity for their stock shares is through the establishment of an employee stock ownership plan(ESOP). [Read more…]

Business Valuation and The New Tax Law

The Tax Cuts and Job Act signed into law by President Trump in 2017  will have both long term and short term effects on business value as the provisions in this legislation will require more complex modeling by business valuation professionals for after tax cash flows and the cost of capital calculations. [Read more…]

Business Valuation and Forensic Accounting

The business valuation and forensic accounting disciplines often are required when valuing a  closely held business for divorce and shareholder disputes. Controlling shareholders may attempt to minimize income and cash flow  and understate assets in order to minimize the amount of cash required to pay minority shareholders or divorcing spouses. Valuation and Forensic experts  are able to uncover these type of financial misstatements and make adjustments to correct these intentional errors to avoid undervaluing the closely held business involved in the litigation. [Read more…]

The Yardstick Method To Measure Economic Damages

The Yardstick Method is a tried and true way to measure economic damages in contract, patent infringement, and other tort claims. In a nutshell, this method is based on comparisons with similar type business in the same industry.    In damages cases the financial experts are hired to assist the court in estimating what a plaintiff might have earned ” but for” the defendant’s alleged wrongdoing. In order to withstand financial scrutiny, experts must base their estimates on real world comparable evidence and not pure speculation. [Read more…]

Valuation of Family Businesses Can Pose A Challenge

Family-owned businesses are not usually run like large public companies and working together can bring out the best and worst in a family owned business entity. Here are four Key questions that business valuation professionals ask when valuing a family owned company. [Read more…]

ACFE 2017 Global Fraud Study – The Staggering Cost of Fraud

Organizations worldwide lose an estimated 5 percent of their annual revenues to fraud, according to the 2017 ACFE Report to the Nations on Occupational Fraud and Abuse. Fraud takes many shapes and forms, among them corporate fraud, consumer fraud, tax fraud, identity theft and many others. [Read more…]