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A Potential New Way to Value Patents

A Potential New Way to Value Patents

When the usual approaches won’t work

Technology and innovation expert and professor, Tim Swift, proposes an alternative to the traditional Market, Income, and Cost approaches to valuing a patent portfolio.

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Necessary Adjustments

Deviations for biased cash flows

Cash flows vary, and traditional approaches need to take into consideration the downside or cessation probability; otherwise, the value of the entity is overstated. Setting the probabilities of “downside” and “cessation” risk drives the appraiser’s efforts in adjusting for biased cash flows. This article presents an approach that can be used to adjust the cash…

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Fitch Doubts IFRS Standards Implementation in U.S.

Fitch Doubts IFRS Standards Implementation in U.S.

Fitch-DoubtA Fitch Ratings report has shared serious doubts that the practice principles of the International Financial Reporting Standards (IFRS) would be fully implemented in the U.S. anytime in the near future, as the Financial Accounting Standards Board (FASB) turns colder on the idea. Three sticking points to the merger of the methods remain financial instruments, insurance and leasing. Financial…

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Mercer’s Five Big Valuation Issues

Mercer’s Five Big Valuation Issues

Five-IssuesIn case you missed it, Z. Christopher Mercer, ASA, CFA, ABAR, founder and CEO of Mercer Capital, was the keynote speaker at the American Academy of Matrimonial Lawyers (AAML) and the American Institute of CPAs (AICPA) 2014 bi-annual joint conference this year. His presentation concerned The Five Really Big Valuation Issues. They included: 1.) discount rates, 2.) control premiums and minority…

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Valuing Equity in Real Estate Holding Entities

Valuing Equity in Real Estate Holding Entities

Think like an investor, not an accountant!

If fair market value is to determine investor expectations and equity risk; then why do these factors receive limited or no consideration when opining on the level of impairments (investor concessions) ubiquitously referred to ask discounts? This article addresses the business risks associated with asset-holding companies’ equity that should be…

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Practical Tips for Engagement Letters

Practical Tips for Engagement Letters

Ways to prevent costly misunderstandings

One of the most important documents valuation, forensics, and litigation support experts produce is the engagement letter. Just as you painstakingly explain what your firm plans to do, it’s also imperative to explain what the client needs to do.

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Healthcare Reimbursement Models to Change, Affecting Valuation

Healthcare Reimbursement Models to Change, Affecting Valuation

Healthcare-ReimbursmentReimbursements from insurers, made to healthcare facilities for the care they administer, are an essential part of the valuation of hospitals, clinics, outpatient care centers and other facilities. As if that exchange wasn’t complicated enough, it’s about to go through another transition that very well may impact the valuation of all healthcare institutions.

According to a new white paper…

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Can a CEO Divorce Affect Corporate Valuation?

Can a CEO Divorce Affect Corporate Valuation?

Do shareholders and boards have a reason to be concerned when a CEO separates or gets divorced? This is the question being asked in a fascinating white paper titled, Separation Anxiety: The impact of divorce on shareholdersby David F. Larcker, Allan L. McCall and Brian Tayar of Stanford University Graduate Business School. The paper is part of the Rock Center for Corporate Governance at…

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AICPA Protests IRS Regulation for Tax Preparers

AICPA Protests IRS Regulation for Tax Preparers

IRSTaxReturnThe American Institute of CPAs (AICPA) recently sent a letter to the IRS calling a proposed “voluntary” certification program for unenrolled tax return preparers “unlawful and improper”. In a recent ruling, Loving, No. 13-5061 (D.C. Cir. 2/11/14), it was held that the IRS does not have the statutory authority to regulate tax return preparers. In the aftermath, IRS Commissioner, John Koskinen,…

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Exit Strategy and Opportunity

Exit Strategy and Opportunity

CPAs can increase billings by catering to exiting baby boomer business owners.

Baby boomer businesses may represent a material percentage of a CPA firm’s clientele. As a record number of these business owners begin the succession/exit process, hidden opportunities exist for firms to increase billing, if you know how to spot them.

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Intellectual Property Valuation Principles—Part 2

Breaking down invisible value

This overview is the second half of Robert Reilly’s series that examines the types of intellectual property analyses, different standards of value that may apply in valuation as well as the alternative types of intellectual property ownership interests and the alternative terms of intellectual property ownership interests. Finally, it offers a discussion regarding…

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Invisible Value

Intellectual Property Valuation Principles—Part 1

This article examines the types of intellectual property analyses, different standards of value that may apply in valuation as well as the alternative types of intellectual property ownership interests and the alternative terms of intellectual property ownership interests.

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Discovery Abuse in the Litigation Process

Discovery Abuse in the Litigation Process

Limiting the potential for abuse and delay

Discovery can reduce the costs of litigation, but it can also be used to harass and delay. There are a number of things that counsel and a forensic professional can do to limit the misuse of the discovery process, save costs, and lead to a settlement.

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One Quarter of All Public M&A Deals Involve Insider Trading

One Quarter of All Public M&A Deals Involve Insider Trading

StockMarketDealsAs if the general public hadn’t lost enough faith in the stock market with recent revelations of rigged deal-making that benefits only a few, a new study shows that 25 percent of all M&A deals between public companies involve some kind of insider trading. The study, conducted by McGill University and New York University, looked at informed trading activity in equity options prior to the…

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The Threshold of Commercial Reasonableness

The Threshold of Commercial Reasonableness

A standard distinct from the fair market value standard

The fair market value is distinct from the commercial reasonableness standard. The article highlights how these standards are applied in a healthcare transaction and why it is important to distinguish these standards.

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