Usually when a business is professionally valued, owners and managers immediately check out the bottom line to see what the company is worth. They may pay little attention to the reasons behind the final number, especially if the report was prepared for internal planning or financial reporting purposes. But it’s a good idea to take  Continue Reading »

The 1993 Daubert case says that an attorney is permitted to challenge an expert witness’s credentials, and if successful, the expert will not be allowed to testify. One case before the U.S. Court of Federal Claims shows how an expert can successfully defend their qualifications and methodologies when they’re subjected to a Daubert challenge. SSE Case:  Continue Reading »

In re Marriage of Kirkendoll 2016 Wash. App. LEXIS 2357 (Oct. 4, 2016) In a Washington state divorce case, the appeals court delved into “the notion of the impermissible ‘double dip’” and explained why the concept was not applicable to the facts of the case. The dispute centered on the couple’s only income-generating asset, a  Continue Reading »

Danmark v. CMI USA, Inc., 2016 U.S. App. LEXIS 21672 (Dec. 6, 2016) In a reasonable royalty analysis, how much emphasis may an expert place on the patent holder’s profit margin before the analysis becomes a lost profits calculation in disguise? In answering this question, the Federal Circuit explained the different thinking behind the pursuit  Continue Reading »

In 2013, Florida’s legislature rejected the long-standing Frye standard on the admissibility of expert witness testimony and adopted the Daubert standard and Federal Rule of Evidence 702 with two amendments to the state’s Evidence Code. Subsequently, The Florida Bar’s Code and Rules of Evidence Committee challenged the legislative changes with the state Supreme Court. Arguing  Continue Reading »

You’ve probably heard the old saying, “a verbal contract isn’t worth the paper it’s written on.” Yet many business owners and executives still enter into handshake deals. This can create problems later on that could have been easily avoided by simply getting things in writing. There’s nothing wrong with ironing out the details of a transaction  Continue Reading »

Holder v. Howe, 2016 Cal. App. Unpub. LEXIS 8989 (Dec. 14, 2016) A bankruptcy-related suit in front of the California Court of Appeal turned on the issue of how to value an aged film that never made any money. The trial court dismissed the plaintiff expert’s approach as “illogical.” The appeals court agreed the method  Continue Reading »

When choosing financial expert for a litigation matter, recommendations from other attorneys or reputation along are often the deciding factor. But even if an expert is known as the best expert in their particular area, they may not be a good fit for every attorney. It makes sense for an engaging attorney to interview the  Continue Reading »

Transupport, Inc. v. Commissioner, 2016 Tax Ct. Memo LEXIS 214 (Nov. 23, 2016) Expert independence was front and center as an issue in the Exelon tax case. Now comes, a reasonable compensation case in which the Tax Court zeroed in on the same point. The court rebuked an experienced compensation analyst for what it perceived  Continue Reading »

When a business is being valued, sometimes working capital can be overlooked. It is important to remember, however, as it can have a material effect on value. Working capital is defined as the difference between a business’ current assets and current liabilities. If an appraiser is using the income or market approach to determine a  Continue Reading »