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June 4, 2020

From the March/April 2019 issue of BCC Advisers Litigation & Valuation Report

When using the discounted cash flow method to value a business, a large chunk of the value is contained in the “terminal” value. This article discusses ways business valuation experts estimate terminal value and the importance of using reasonable assumptions about long-term growth.

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May 27, 2020

From the January/February 2019 issue of BCC Advisers Litigation & Valuation Report

The laws in most states make a distinction between marital and separate property for purposes of marital dissolution. In cases where property increases in value during the marriage, experts may be hired to determine whether that appreciation is passive or active. This article explains the difference between these terms and why it matters when divvying up a marital estate in divorce. A sidebar highlights the need to take a holistic approach when differentiating between the active and passive appreciation when valuing a business.
Bair v. Bair, 214 So. 3d 750 (Fla. 2nd DCA 2017)

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May 21, 2020

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.

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May 18, 2020

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.

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May 7, 2020

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.

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April 30, 2020

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.

 

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April 23, 2020

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

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April 22, 2020

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

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April 20, 2020

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.

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April 15, 2020

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

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