A valuation report with errors is never a good thing and can hinder the purpose of the valuation to begin with. The ten most common errors found on valuation reports are
Continue reading “What Are the Ten Most Common Errors Found in Valuation Reports?”Importance of Business Exit Planning
A large number of business owners in the Boomer generation (born 1946-1964) are planning to transition out of their business in the next 10 years (University of Connecticut and Price Waterhouse surveys). However, it is estimated that less than fifty percent of business owners have been proactive in planning for the orderly exit from their business.
Continue reading “Importance of Business Exit Planning”John Janicek Earns Master Analyst in Financial Forensics (MAFF) Credential
John R. Janicek, CPA, CVA, ABV, CFF, FCPA, CR.FA of Janicek Valuation and Forensic Services, PLLC has successfully completed the rigorous certification process with the National Association of Certified Valuators and AnalystsTM (NACVA®) to earn the Master Analyst in Financial Forensics TM (MAFFTM) credential.
Continue reading “John Janicek Earns Master Analyst in Financial Forensics (MAFF) Credential”Commercial Damages-Lost Profits
The calculation of damages in commercial litigation is generally based on lost profits. The purpose of a lost profits calculation is to place the damaged party in the same financial position or condition it would have been but for the other party’s wrongful action to the extent allowed by law.
Continue reading “Commercial Damages-Lost Profits”Common Business Value Drivers
What causes a business to sell quickly and receive a premium price from buyers ? The answer to this question are business characteristics called value drivers. The value drivers buyers look for that are common
Continue reading “Common Business Value Drivers”Planning for the Sale of Your Business
The sale of your business requires as much thought and planning as when the business was originally started. Experience has shown that a business owner who sells his business without proper planning does not have a successful sale process. Some of the key mistakes sellers make pertain to the following:
Continue reading “Planning for the Sale of Your Business”What’s So Hard about Valuing Interests in Family Limited Partnerships (FLPs)?
The valuation of a limited partnership interest in an FLP requires the same diligence as the
appraisal of a minority interest in any other business enterprise. An experienced valuator
will apply the appropriate methodologies from the Asset, Income and Market Approaches to
derive a non-controlling, marketable value and then consider an adjustment
Will a Daubert Challenge Derail Your Expert?
As an experienced provider of litigation support services, I am aware of the unique challenges
financial experts face. When a “financial expert” provides written or oral testimony to a trier of
fact, the following considerations are crucial:
What “Discounts” Should Your Clients Take Advantage of When Gifting a Percentage of Their Business? (for Estate Planning)?
Generally there are two discounts considered in the valuation of a closely held business:
- Marketability
- Minority Interest
The marketability discount will apply in many valuation situations, whereas the minority discount will only apply when the interest being valued is a minority interest. The market
Continue reading “What “Discounts” Should Your Clients Take Advantage of When Gifting a Percentage of Their Business? (for Estate Planning)?”What Is the Capitalization of Earnings Method and When Should It Be Used?
In its simplest form, the Capitalization of Earnings Method converts an expected income level into value by dividing income by a capitalization rate. This method has the following characteristics:
Continue reading “What Is the Capitalization of Earnings Method and When Should It Be Used?”
Janicek Valuation & Forensic Services, PLLC 