Business appraisers should watch the growing “secondary market” for private securities for opportunities
“The public capital markets are broken,” Adam Oliveri, Managing Director for SecondMarket, told commercial lawyers at the ABA Business Law Sections annual meeting in Denver last weekend. SecondMarket is one of the new centralized sales platforms for illiquid assets. Here are some indicators of what’s wrong with the capital markets now: The number of public [...]
Litigation “crisis” leads to more business courts (besides Delaware Chancery Court)
“Even relatively few lawyers know that there are now business courts specifically designed to handle complex litigation,” the Honorable Ben Tennille (North Carolina) commented at last weeks’ spring meeting of the ABA Business Law Section in Denver, Colorado. As Chief Special Superior Court Judge for Complex Business Cases, Tennille has witnessed the nationwide and now [...]
Valuations from securities and limited partnership litigations may be waning
As many predicted, a wave of securities litigation followed the credit market crash: In 2009, 7,137 claims were filed with FINRA, a 43% increase compared with 2008 (4,982 cases filed). Most of the disputes asserted breaches of fiduciary duty, misrepresentation/fraud, negligence, and breach of contract related to common stock and mutual funds. However, cases concerning [...]
8th Circuit confirms Tax Court’s buy-back limits on marketability discounts
Most appraisers who do valuations for tax purposes remember Holman v. Commissioner (May 2008), in which the taxpayers gifted substantial holdings of Dell stock into a highly restricted family limited partnership (FLP). The Tax Court agreed with the IRS, finding the transfer restrictions were merely tax avoidance devices and should be disregarded for valuation purposed [...]
OECD on transfer pricing: look for updated guidelines in 2011
The Organisation for Economic Co-operation and Development(OECD), which helps member nations strive for better global standards (and which publishes Transfer Pricing Guidelines) will begin to update their transfer pricing guidelines in 2011. OECD’s Working Party No.6 will examine the legal and economic ownership and taxation of intangibles in addition to valuation methods. “The fact that [...]
Trends in Control Premiums: Key Information for BV Experts
Knowing how to recognize and quantify control has been an ongoing debate for appraisers. To help ease the debate, the Appraisal Foundation’s third Working Group and the American Society of Appraisers (ASA) are developing guidelines regarding the assessment, measurement and application of control premiums. “There’s a whole lot more complexity to think about than most [...]
Y/S Advisory: practice growth support for appraisers from Yeanoplos and Seigneur
Congratulations to Kevin Yeanoplos and Ron Seigneur who announce the launch of Y/S Advisory yesterday! Both Kevin and Ron will continue to offer BV services to clients, but their mutual interest in professional education and training led them to form this new venture. “We want business valuation firms to grow and thrive,” said Kevin. Y/S [...]
Even this recession might not be enough to devalue a company
Experts can successfully argue that the process of business appraisal inherently includes a discount for the risk of economic turmoil. At least that’s what just happened in Mistretta v.Mistretta (Fla. App., Feb. 18, 2010), where the trial court valued the husband’s restaurant at $854,000, based on a valuation report prepared nearly a year earlier. [...]
BizMiner now offers 7 year industry financial reports
Many appraisers are finding that more industry financial history is required to capture a better sense of this weird business cycle. BizMiner has added 2002-2004 data to their reports so that subscribers now have a choice of selecting 3 yr., 5 yr. or 7 yr. Industry Financial reports. Seven-year reports are deposited into the [...]
NERA article on how credit crisis affects transfer pricing valuations
In this issue of Transfer Pricing International Journal, NERA Consultant Amanda Pletz and Senior Consultant Artur J. Bonifaciuk consider some of the lasting issues that multinational enterprises are likely to face in the context of the credit crisis with respect to intra-group financing options, and the repercussions for the area of transfer pricing. Available on the [...]
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