Category Archives : Valuation

Using Financial Experts to Smooth Purchase Price Adjustments

Most acquisitions are finalized before closing-date financial statements have been prepared. When the closing-date financials become available, a purchase price adjustment may be required. This article explains why financial experts are invaluable in drafting PPA provisions and helping resolve disputes. Businesses put a great deal of time and effort into structuring acquisitions, but the most […]

Law Firm’s Contingency Fees were Marital Property

A court found that unpaid contingency fees earned by a husband’s personal injury law practice were marital property, but it rejected the historical average income approach used to value the fees. This article looks at the important lessons of the case. In a recent case, Stageberg v. Stageberg, a Minnesota appellate court found that unpaid […]

Evaluating Owner Compensation

When a business is valued, owner compensation is likely to come under the microscope. Generally, valuators consider only “reasonable compensation” — that is, the amount the business would need to pay a non-owner to provide comparable services. This article goes into the details of this important process. One of the perks of owning a closely […]

Determining the Useful Life of Intellectual Property

Placing a value on intellectual property—such as patents, copyrights and trademarks — requires a determination of the asset’s remaining useful life (RUL). In addition to statutory limits, a number of factors affect an asset’s RUL, including economic, contractual, legal and technological factors. This article describes some of these factors. Calculating an asset’s remaining useful life […]

What does an appraiser need?

The more information in the appraiser’s hands, the more accurate the valuation. Here’s a guide to the information you should make available to your appraiser. Regardless of the reason for a business valuation, one fact is indisputable: The more information in the appraiser’s hands, the more accurate the valuation. To obtain a business valuation that […]