Articles - Page 2

From the July/August 2019 issue of BCC Advisers Litigation & Valuation Report

In mergers and acquisitions, the target company’s financial statements provide the numbers to support the selling price. But those quantitative results may not be sustainable. This article explains how quality of earnings (QOE) reports may help buyers, sellers and investors identify trends that may provide value-building opportunities — or threaten a company’s future performance.

Don’t let red flags during the due diligence process derail your transaction or cause you to renegotiate a less desirable purchase price. Here we discuss preparation tips for this important aspect of a business sale, including insights on pandemic-related issues.

From the November/December 2018 issue of BCC Advisers Litigation & Valuation Report

From personal injury to wrongful termination, there are many reasons an individual might seek to recover lost earnings — the difference between the earnings the plaintiff would likely have enjoyed but for the defendant’s wrongful act, and the plaintiff’s actual expected earnings. This article outlines five steps required to calculate lost future earnings.

From the July/August 2019 issue of BCC Advisers Litigation & Valuation Report

Start-ups present valuation challenges because they often have limited earnings and cash flow. This article explains how business valuation experts must look to other factors, many of them subjective, to estimate value.

From the March/April 2017 issue of BCC Advisers Litigation & Valuation Report

When calculating lost profits in commercial litigation, it’s critical to understand how costs are treated in the relevant jurisdiction. This article explains variable and fixed costs - and how the deductibility of the latter may vary in different courts. RKR Motors v. Associated Uniform Rental & Linen Supply, 995 So. 2d 588, Fla. App. 3rd Dist., 2008

BCC Financial Analyst Michelle Temeyer shares the impact of COVID-19 on business valuation for private companies.

Every company and industry has unique characteristics for calculating and setting a working capital target, which is necessary in a business sale. Here we discuss developing a working capital target, its effect on purchase price, and common challenges.

From the September/October 2017 issue of BCC Advisers Litigation & Valuation Report

When quantifying a discount for lack of marketability, common sense may override complex regression analysis. This article outlines a recent estate tax case in which the Eleventh Circuit Court of Appeals and the Tax Court agreed to value an LLC interest from the perspective of a hypothetical investor, rather than relying on a complex analysis of restricted stock data.

Estate of Koons v. Commissioner, 2017 U.S. App., No. 16-10646 and 16-10648, April 27, 2017

From the BCC "Baton" - Volume 12, Issue 2

When structuring the terms of a business sale, there are several considerations related to how to handle the real estate. We discuss those considerations here.

From the May/June 2018 issue of BCC Advisers Litigation & Valuation Report

When a business sells or “spins off” one of its business units, adjustments may be needed to reflect changes in the newly independent company’s relationship with its former parent. This article highlights three control-related issues that may require valuation adjustments: management, intellectual property and transfer pricing.