One of the primary objectives in a divorce is the division of marital property , which includes all
assets and liabilities accumulated during a marriage. An experienced divorce attorney can help with property division however, when it comes to complicated financial assets a forensic accountant can be invaluable in assisting an attorney with a complex financial situation.
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:
Continue reading “Misconceptions about Fraud in the Family Business”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.
Continue reading “Business Valuation Seminar Fraud”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.
Continue reading “Key Factors That Affect Business Value”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.
Continue reading “Tennessee Supreme Court Adopts Modern Valuation Methods For Dissenting Shareholder Disputes”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).
Continue reading “Exit Strategy : Employee Stock Ownership Plan”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.
Continue reading “Business Valuation and The New Tax Law”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.
Continue reading “Business Valuation and Forensic Accounting”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.
Continue reading “The Yardstick Method To Measure Economic Damages”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.
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Janicek Valuation & Forensic Services, PLLC 