The Mentor Group Blog
Posted on Dec 1, 2023
Valuation of IP (encompassing term for intangible assets) is the most difficult exercise in financial valuation. While not all of the below factors impact every IP valuation, a thorough analysis will ...
Continue reading "Numerous Factors Impact IP Valuation" »
Posted on Nov 1, 2023
A Section 338(h)(10) election is a specific tax provision under the Internal Revenue Code (IRC) in the United States that allows for a special type of asset purchase treatment in the context of a ...
Continue reading "Benefit of a Section 338(h)(10) Election" »
Posted on Oct 1, 2023
We recently worked with a high-end clothing and home goods retailer which operates shops in Los Angeles. One of the partners wanted out of the business, and the other partners agreed to buy her out. ...
Continue reading "When a Partner Wants Out: Getting to a Fair Price" »
Posted on Sep 1, 2023
The term Name, Image, and Likeness (NIL) is the current nomenclature for the IP known as right of publicity or persona. NIL now allows the more famous athletes in college to monetize their right of ...
Continue reading "Name, Image, and Likeness" »
Posted on Aug 1, 2023
The IRS is ramping up enforcement with increased audits of discount valuations. The Mentor Group has an excellent reputation with the IRS. Our valuations are almost always accepted without changes. ...
Continue reading "THE IRS AND DISCOUNT VALUATIONS" »
Posted on Jul 1, 2023
A Cap Rate, or capitalization rate, is a financial metric used in real estate investing to estimate the potential return on a property investment. It is calculated by dividing the net operating income ...
Continue reading "REAL ESTATE FOR DUMMIES" »
Posted on Jun 1, 2023
ROI stands for Return on Investment, which is a financial metric used to evaluate the profitability of an investment relative to its cost. It is a commonly used metric in business and finance to ...
Continue reading "ROI: AN INVESTMENT CONSIDERATION" »
Posted on Jun 1, 2023
In a relatively recent gift tax case, the experts on both sides applied a C corporation tax rate to the companies S corporation earnings. Initially, the IRS (Kress v. U.S.) claimed that the taxpayers ...
Continue reading "TAX AFFECTING S CORPS" »
Posted on May 1, 2023
Why, you ask, aren't all valuations for the same business or asset alike? How can they differ so much? There are reasons for divergence of opinion. And they usually involve one valuator being an ...
Continue reading "NOT ALL VALUATIONS ARE ALIKE" »
Posted on Apr 1, 2023
For a business owner, exiting and retiring can be a daunting process, both financially and emotionally. One of the key factors that can help ease this process is a pre-sale valuation of the business. ...
Continue reading "Preparing for a Successful Business Sale" »
Posted on Mar 1, 2023
A fairness opinion is a professional evaluation conducted by an independent third-party advisor to assess whether a proposed financial transaction or event is fair to all parties involved. The primary ...
Continue reading "PRIMARY ISSUES ADDRESSED IN FAIRNESS OPINION" »
Posted on Feb 1, 2023
Can you value a business without appraising the underlying assts? The answer is yes. In fact, most business valuations are not all premised upon any specific asset values. Think of a business or ...
Continue reading "BUSINESS VALUE vs. UNDERLYING ASSETS" »
Posted on Jan 1, 2023
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 ...
Continue reading "ASSESSING IP DAMAGES" »
Posted on Dec 1, 2022
For most companies contemplating some form of seller exit, an ESOP is often discussed as an alternative strategy. Considering an ESOP today is more fraught with some anxiety than ever before. Why? The ...
Continue reading "ESOP: ALTERNATIVE TO A SALE?" »
Posted on Nov 1, 2022
The looming sunset of the Tax Cuts and Jobs Act (albeit three years out at the end of 2025) has already begun to surface. The significant changes which positively impacted individuals may be ...
Continue reading "SUNSET OR RESET" »
Posted on Oct 1, 2022
Periodically, we perform business and IP valuations in countries outside the U.S. In conjunction with this work, we have developed relations with professionals in various locales, which further ...
Continue reading "INTERNATIONAL VALUATIONS" »
Posted on Sep 1, 2022
The valuation of a universal or whole life insurance policy is needed for at least the following reasons: An asset acquired via the purchase of a company. A transfer of this asset, such as to a ...
Continue reading "VALUING LIFE INSURANCE POLICY" »
Posted on Aug 1, 2022
The latest IRS regulations were promulgated on July 30, 2018. These included detailed definitions of a qualified appraisal and a qualified appraiser. The appraisal must support the value of a stock or ...
Continue reading "CHARITABLE CONTRIBUTIONS" »
Posted on Jul 1, 2022
In prior years, fairness opinions were primarily applicable for publicly held companies. Today, private transactions involving disparate and potentially conflicted parties are often accompanied by ...
Continue reading "FAIRNESS OPINION" »
Posted on Jun 1, 2022
A valuator (business or IP) or appraiser (hard asset: real estate, equipment or inventory) is considered an "expert" when one or more of the following occurs: He is qualified by a court of ...
Continue reading "WHEN IS A VALUATOR APPRAISER AN EXPERT?" »
Posted on May 1, 2022
A SPAC is special purpose acquisition company designed to expedite a merger of a target seller into a publicly traded entity. The incredible expansion of SPAC funds has somewhat saturated U.S. ...
Continue reading "SPAC FAIRNESS OPINION" »
Posted on Apr 1, 2022
Convertible instruments include various forms of debt obligations that are not common stock or member interests in an LLC. However, they are convertible into equity or equity equivalents. The variety ...
Continue reading "CONVERTIBLE INSTRUMENTS VALUATION" »
Posted on Mar 1, 2022
The following is a simplified overview of the need for documentation to support an allocation of the purchase price of a business. In most purchases, the agreement contains a schedule of allocated ...
Continue reading "STOCK vs. ASSET - ALLOCATION OF PURCHASE PRICE" »
Posted on Feb 1, 2022
Taxpayers and savvy professional service providers are often unaware of the differences in discount valuation reports issues by supposedly competent valuators. The Mentor Group approach is unique in ...
Continue reading "WIDE VARIANCE IN DISCOUNT VALUATIONS" »
Posted on Jan 1, 2022
Bless the SEC for they have recently promulgated new guidance for Spring-Loaded Stock Awards (SLSA). In past years, executive stock compensation awards or grants just prior to the announcement of ...
Continue reading "Spring - Loaded Stock Awards" »