The Utah Court of Appeals recently examined the nature of goodwill in the Marroquin v. Marroquin case which expanded on the state’s jurisprudence. Sage determined that all goodwill was personal in nature and therefore, non-transferable without a non-competition agreement. At trial, the Court found Sage ’s valuation to be more credible and adopted Sage’s value for the company.
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.
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.
The criteria and qualifications that should guide the selection of a forensic accounting expert witness. Our discussion draws distinctions between the different skill sets that exist within forensic accounting and how those skill sets drive the selection of forensic accounting experts. We use these distinctions and classifications as a gauge for identifying appropriate experts in a variety of situations.
