Like you, I woke up today to numerous news programs discussing the coronavirus. Aside from the health concerns, it has become apparent that businesses, large and small, national and local, are being affected. Some...
The Valuation Impact the Coronavirus will have on Closely-Held Businesses
Category
Business Valuation
The NBA & NHL have suspended play. MLB has postponed the start of its season. Public & private schools around the country are closing. Locally, the NYC St. Patricks’ Day parade and other large public...
Are loans due to or due from shareholders a bona fide debt obligation, a form of equity capital, or a hybrid of the two? This distinction is relevant when valuing a business – particularly in a shareholder dispute or...
Our firm was recently retained to determine the fair value of a minority interest in a business for a shareholder dispute. Despite it being a sizable business, the owners never got around to memorializing the termination...
A number of years ago I went on a short vacation to Ottawa, Canada. Between the hotel and the town center was what we New Yorker’s call a coffee shop or diner. The storefront was brightly lit, clean, and had a menu the...
A business is considered solvent when it is able to meet its long-term obligations. In determining same both the federal Bankruptcy Code and the Uniform Fraudulent Transfer Act look at the fair value of a debtor’s...
We are presently working of several assignments concerning dissenting shareholder disputes. Attorneys that represent clients in such matters can attest that there are many challenges unique to these cases. One of...
The Income Approach Simplified. DCF v. Capitalization of Earnings Methods
Category
Business Valuation
Recently, while testifying to the fair market value of a closely-held business, the attorney began off-scrip and asked, “Mr. Gottlieb, what is valuation?” He didn’t ask me to explain the genesis of the fair market value...
How Will Fair Value Valuations For Financial Reporting Be Affected By The TCJA
Category
Business Valuation
The upcoming audit season will bring some new challenges for auditors testing of fair value measurements for financial reporting. Some recent changes due to the Tax Cut and Jobs Act of 2018 (“TCJA”) will create...
Last week we published the first of three installments of our Delaware Appraiser Series. We reviewed the fair value standard and some notable differences between the fair value standard used in the Delaware Chancery...