What is Fair Value?

To understand what fair value is, one might think to look in a textbook dealing with “valuation,” or in the case of business valuation, in some generally accepted glossary of business valuation terms. However, if you look in the American Institute’s International Glossary of Business Valuation Terms, you won’t find Fair Value defined. You will…

Simplifying Big Data from a Wage and Hour Case

We were recently involved in a wage and hour case that entailed working with and summarizing a large amount of data. In the process, we were able to leverage our expertise in Excel to analyze the data, develop a fluid and efficient model, and present the findings in a clear and concise manner most useful…

True-Up Pitfalls of the Asset Purchase Agreement

I have recently been involved as an expert in two very contentious, big dollar, pieces of litigation involving the purchase price true-up following the close of an asset purchase. The litigation and financial forensic expert costs were very significant and probably could have been avoided had the parties to the deals engaged a firm like…

Use of the Joint Appraisal Expert: Opportunities and Threats

Two articles that discuss the role of the valuator/appraiser in joint appraisal assignments. >> Use of the Joint Appraisal Expert: Opportunities and Threats Part I >> Use of the Joint Appraisal Expert: Opportunities and Threats Part II

Discounts for Imbedded Capital Gains Tax Liabilities

The recent decision by the Eleventh Circuit Court in the case of Estate of Jelke v. Commissioner helps to establish an emerging valuation standard with respect to discounts for imbedded capital gains. The issue of discounts for imbedded capital gains has been a controversial valuation topic since the repeal of the General Utilities Doctrine in…

Another FLP Deduction Disallowed for Lack of Viable Business Purpose

Estate of Korby v. Comm’r of Internal Revenue, 2006 U.S. App. LEXIS 30087 (December 8, 2006) After retiring with a modest estate, the Korbys attended a free estate-planning seminar given by an attorney, who later helped them transfer nearly $2 million in assets to a living trust. The trust then retained a 2% general partnership…