Janicek Valuation & Forensic Services, PLLC

What Is the Difference between Enterprise Value and Equity Value?

Sometimes people use the two terms interchangeably. However, for legal purposes there may be a significant difference in the two terms. Let’s assume your client is involved in a divorce action, and it is important to know the value of the business for settlement purposes.

Are Rules of Thumb Appropriate Valuation Methods for Litigation Matters?

Rules of thumb exist for several types of businesses. They were developed by business brokers over time, based upon actual sales transactions involving businesses in a particular industry. While a rule of thumb can provide buyers and sellers of businesses with an

What’s the Difference Between an Expert Consultant and Expert Witness?

As an expert consultant, the CPA/CVA/CFE is engaged to develop information that will be used by the attorney in a variety of ways, including settlement negotiations with the opposing side. In these instances, the CPA/CVA/CFE is usually not expected to testify or to develop an opinion that will be entered in to the court records.

Forensic Considerations In Divorce

When representations made by an opposing spouse appear questionable, a CPA/CVA/CFE may be engaged to test the financial representations by performing forensic procedures. For example, a family incurs annual living expenses of $90,000 and the earner spouse claims to make only $40,000 per year.

Family Limited Partnership Discounts May Be at Risk in the Future

The IRS enacted in 1990 Internal Revenue Code Section 2704 to eliminate what was considered to be valuation abuses in family asset transfer transactions. The overall goal of this code section was to require the valuation analyst to ignore any provision in agreements that transferred a partnership interest or privately held stock interest to family members that would not be accepted by an unrelated third party in an arm’s length transaction.

Is the “Capitalization of Excess Earnings Method” Reasonable for Determining Goodwill in Divorce Valuation?

In divorce valuations, no sale exists to measure the price paid for the business, so a residual method is not appropriate when parties with adverse economic interests cannot agree. Many times,

Planning Your Business Exit Strategy

As a society that thrives on constant labor, we give very little thought to what happens when we are ready to end our work. We spend a vast majority of our time working that we rarely focus on creating a strategy to dissolve our businesses successfully. With the professionals at Janicek Valuation & Forensic Services, you can wisely plan when and how you will transfer ownership of your business.

Improving Financial Discovery Can Lead To Improved Financial Outcomes

Complete financial information provided to a financial expert can lead to more credible work product produced by the expert. Unfortunately, many attorneys bring the CPA/CVA into the picture too late in the case!

The Attorney/Valuator Partnership in Divorce Cases

Equitable distribution in divorce causes the need for emphasis to be placed upon the economic aspects of marriage. This includes the valuation and division of marital property, as well as any resulting tax consequences. This economic emphasis in divorce proceedings

Are Past Transactions Involving a Company’s Stock Important Considerations in Business Valuation?

A very useful, but sometimes overlooked market approach method is the analysis of past transactions involving the subject company. There are at least three groups into which these transactions