Who says there’s no goodwill in a divorce?

Intangibles often play a key role in marital assets

Determining equitable distribution of assets in a divorce can be challenging — especially when the estate includes an interest in a privately held business. This challenge is compounded when a company’s value resides in intangible assets, which are more difficult to quantify. Intangible value may also be counted twice. This article explains the ins and outs of valuing intangible assets for marital dissolution purposes.

Going on the offensive

3 issues to raise during depositions and cross-examinations

Drafting pertinent deposition and cross-examination questions can be a daunting task. This article notes three potential pitfalls that may impair a valuator’s effectiveness. It shows how a valuator can help attorneys come up with questions that expose possible weaknesses in the opposing side’s expert testimony.

Estate tax valuations and subsequent events

When appraised values seem to contradict real-life transactions

 If a company sells for more than its previously appraised value, the IRS may note the discrepancy and send a deficiency notice. But a discrepancy between a previous appraisal and a subsequent event doesn’t have to be a problem — if the valuator prepares a comprehensive rebuttal memo supported by facts and empirical evidence. This article discusses how an appraiser can collect the necessary data to help the previously appraised value withstand an IRS challenge.

The lowdown on the buildup method

Estimating a privately held company’s cost of equity can be challenging for a business appraiser, because the cost of the equity is not directly observable in the marketplace. Instead, it requires analyses of comparable publicly traded investments as well as valuator judgment. This article briefly defines some important components of the buildup method.