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Litigation: Critical Need for Financial Advisor

Litigation matters are almost always settled on economic analyses/positions. Too often, they fester and proceed based on emotional, usually irrational, behavior on the part of one or both litigants. ...
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Brand / Trade Name Value

Can a brand or trade name have value apart from the business? Yes. However, the ongoing business, if profitable, will enhance the brand value and be enhanced by the brand. For the profitable business, ...
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Derivative Valuation

In financial terms, the derivative contract derives its value from the performance of an underlying property. This property – asset, index, or interest rate – is called the ...
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RIGHT OF PUBLICITY (Name and Likeness)

The intellectual property called Right of Publicity (RP), is also known as "Name and Likeness" "Persona," and "Personality Rights." Any and all of these terms encompass ...
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PURCHASE PRICE ALLOCATION ISSUES

Purchase Price Allocation (PPA) is triggered by an acquisition. The purchase price is allocated to the assets and liabilities included in the transaction. Buyers and sellers often have different ...
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HOW MUCH IS THAT IP IN THE WINDOW?

With due attribution to an old song (Doggie in the Window), for most companies there is no IP value in the window, or on the Balance Sheet. The reason is simple: costs to develop and protect the IP ...
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PROFITS INTERESTS

Special equity compensation known as profits interests (PI) are only issued by Limited Liability Companies (LLCs). They provide for a share of profit in the company after a specific point in time. ...
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ESOP Valuation Nuances

What makes ESOP valuations unique from other business valuations? The discussion below highlights some of these nuances. ESOP Advantages Employee Stock Ownership Plan is a qualified retirement plan ...
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Solvency Opinion

A solvency opinion (valuation analysis) is required by sellers and new creditors to a leveraged transaction involving a company recapitalization. Due to concerns about fraudulent conveyance, parties ...
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CARRIED INTERESTS

The Mentor Group has performed numerous and significant valuations of carried interests in alternative asset management firms, namely hedge funds (HF) and private equity groups (PEG). These fund ...
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DEMISE OF PROPOSED IRS REG 2704

With the recent Trump election, the yearend craziness related to estate gifting valuations has largely ceased. No one knows how the income and estate tax laws will change in Congress, but our clients ...
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Right of Publicity (Name and Likeness)

The intellectual property called Right of Publicity (RP), is also known as "Name and Likeness" "Persona," and "Personality Rights." Any and all of these terms encompass ...
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Latest IRS Tactic - Minority Premium Model

In the last two years, we have confronted the IRS on their application of a Minority Premium Model (MPM). It is being used to minimize discounts for tenant-in-common interests in excess of 50% of an ...
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Assessing IP Damages - Current Litigation Environment

Based upon a Federal Circuit Court of Appeals ruling, damage experts can no longer rely on a "25% rule of thumb" to support a reasonable royalty rate. This 25% rule had been accepted by ...
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IP Value on Financial Statements

If a company did not acquire its IP, and only developed it internally, the Balance Sheet will not reflect any IP amount. While some discussion has surfaced within the Financial Accounting Standards ...
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Startup "Valuation"

How do you establish a valuation for a new or startup company? The more common approaches follow. The owner(s) sets the value based upon his prior experience with similar companies. The initial ...
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Why Pay for a Supportable 409A Valuation?

What is 409A and why this Internal Revenue Code Section require a valuation? 409A does not actually state that an independent valuation of a common share of the company is necessary. However, it does ...
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Right of Publicity

In the last several years, the deaths of some very famous singers/song writers – Michael Jackson, David Bowie and Prince, to name a few – has brought to the "public light" the ...
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Internal Rate of Return

The Internal Rate of Return (IRR) is a much referenced metric yet, often misunderstood concept. The IRR measures the profitability of potential investments. It is the discount rate that converts the ...
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Business Valuation: What's it Worth

Not every business needs to hire a professional business valuator. For small firms with less than $1 million of SDE (Seller's Discretionary Earnings) certain rules of thumb may be applied. For ...
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What's Hot, What's Not

What's Hot in our world of services is cost segregation, real estate appraisal, and valuations for partner disputes, issuing options, investment in IP, physicians practices (for sale or merger), ...
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Litigation: Business Value v. Lost Profits

There are substantial differences between the assignment to calculate lost profits and the valuation of a business as of a fixed date. The fundamental objective of a business valuation is to determine ...
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Strategic Value

Is there really a strategic value that private firms can expect when they decide to sell? If so, how can they estimate the amount? Strategic value is a real, yet amorphous, concept. It is best defined ...
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TRANSFER PRICING IRC SECTION 482

Companies which transfer goods and services among offshore and related entities are subject to the provisions of Internal Revenue Code Section 482. Crucial to meeting these standards of objectivity is ...
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PERSONAL GOODWILL

If personal goodwill is not a property right of the enterprise, its value is not includable in the assets of the business. Thus, it is separable from business goodwill. What is personal goodwill? It ...
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