The definition of property is pivotal in any valuation. The valuation is essentially an economic quantification of the bundle of rights that are either held or transferred in connection with the valuation project. [Read more…]
Where Is the Excess Earnings Method Most Relevant?
04/11/2016 Posted By
The excess earnings method of valuation is the result of Appeals Revenue Memorandum 34, issued by the Internal Revenue Service. Its intended result was to separate the value of the tangible assets from the value of the intangible assets. [Read more…]
What Are the Key Elements to an M&A Due Diligence?
03/28/2016 Posted By
Due diligence is an important part of any acquisition or transaction. It is typically carried out by both legal counsel, and financial counsel. It will provide an understanding of the business as well as the risks including: [Read more…]
Can Anyone Do Valuations?
03/21/2016 Posted By
Certainly anyone has the capability to prepare a valuation. The bigger question is “Are they qualified to prepare the valuation?” It is important that you or your clients evaluate the potential expert in light of their education, experience, background, and credentials in the valuation arena. [Read more…]
What Are the Key Issues of Family Limited Partnerships?
03/14/2016 Posted By
When utilized correctly, Family Limited Partnerships can be very powerful estate planning and
asset protection planning tools. However there are a number of defects that can occur. The
following is a list of common defects in FLP structures, not in any particular order and certainly
not exhaustive: [Read more…]
How Are Valuations Used in Asset Impairment Studies?
03/07/2016 Posted By
The Financial Accounting Standards Board approved the issuance of Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. FAS 144 applies to recognized long-lived assets to be held and used or to be disposed of. [Read more…]
Should Certified Valuation Analysts Be Engaged Only for Valuations?
02/29/2016 Posted By
Certified Valuation Analysts (CVAs) are Certified Public Accountants who have obtained special training in financial analysis as well as business valuation theory, practice and reporting. [Read more…]
What Is EBITDA and Why Is It Important in Financial Analysis?
02/22/2016 Posted By
EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization. EBITDA earnings are used by many valuators and financial analysts as a method to compare the cash earnings of a subject company with cash earnings of comparable companies. [Read more…]
Are Business Valuations Needed for Gift and Estate Tax Purposes?
02/15/2016 Posted By
Yes! Business valuations are a must for estate and gift tax purposes. Estate valuation principles relating to business interests are in Regs. 20-2031-2 (f) and 20-2031-3. Gift tax valuation principles relating to gifts [Read more…]