The professional expert witnesses at Sage testify frequently in both State and Federal court throughout the United States regarding economic damages, business valuation, lost profits, asset tracing and other forensic accounting investigations.
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Misleading financial statements can take many forms. The errors or omissions may be relatively minor or they may be significant. The problem, however, is that because of the multiple interests of those who rely on financial statements, even minor errors or omissions can prove disastrous.
While a great deal has been published regarding the development of a business appraisal practice, many of the pitfalls that await the unseasoned practitioner have not been identified. And primary among those pitfalls, especially for CPAs, is the reality that business valuation, by its very nature, is as much an art as it is a science.
Essentially, in all cases, a competent economic damages expert will begin by evaluating this most basic of factors: But-for the injurious event, how much would the business or individual have earned during the damage period?
a unified approach for defining and quantifying economic damages suffered by operating entities. For purposes of this treatise, economic damages refer to any temporary and/or permanent impairment caused by one or more parties and sustained by an operating entity.
Valuation discounts typically relate to either the lack of control or lack of marketability inherent in an equity interest. While these discounts are usually considered in many business appraisals, the determination of these values differs, sometimes significantly, depending upon whether a company is valued as an operating company or as a holding company.
We’ve all seen it: shareholders who can’t get along. So what happens when the shareholders of a private company can’t resolve their differences? In Utah, there are two statutes that govern these situations. The first, known as a judicial dissolution statute, applies when shareholders are deadlocked.
The SEC is now focusing on how the company valued everything from trading activities to hard assets such as investments in power plants and fiber optic networks. Specifically, the SEC is seeking to determine how and when the downgraded assets were placed on the balance sheet.