May 2nd, 2013
Brooke Tucker was recently elected to the Board of Directors of the Exit Planning Exchange (XPX) for the XPX DC Metro Chapter. Specifically, Brooke will oversee the sponsorship committee for the board.
XPX provides cutting-edge programming and top-flight networking opportunities and connections. The chapters consist of trusted advisors to privately-held companies and their owners. The knowledge, relationships and referrals developed and received through XPX is meant to help advisors learn to raise the topic of exit planning with their owner-clients and, through collaboration with other XPX members, prepare the owner for the transition of the business to the next owners. The collaboration between members of XPX contributes to strengthening the exit planning field as a whole.
The DC Metro Chapter, which meets once a month in Tysons Corner and Rockville, has approximately 50 members. See more about the organization here. The next meetings are on May 16th and June 20th. Please call, 410.779.9402, or email Brooke if you are interested in attending.
March 5th, 2013
We had a great time this year at the Baltimore County Bar Association Annual Bull & Oyster Roast. It was filled with great food, great people and was for a great cause. The Silent Auction Program benefited the Alzheimer’s Association. We are very honored to be associated with the bar association and proud to be one of their Signature Sponsors. The image to the left features Tucker & Meltzer’s Managing Director Mark Norris with Ali Lemon Bojanowski from Zest Social Media Solutions.
March 19th, 2012
Written by Jennifer Rosenberg
Are you looking for a business valuation expert? The expert you choose may be one of the most important steps you take. Keep in mind these important characteristics of a great expert:
- Curriculum Vitae – don’t forget to review the resume. Your experts need experience and expertise.
- Credentials– in the case of an expert, the letters mean something. Just like your attorney has a BA and your accountant a CPA, your expert should have credentials. Here are the top three:
- ASA – Accredited Senior Appraiser , issued by the American Society of Appraisers
- ABV – Accredited in Business Valuation, issued by the American Institute of Certified Public Accountants
- CVA – Certified Valuation Analyst, issued by the National Association of Certified Valuators and Analysts
- Education and Training
- Communications Skills
Remembering to hire the right person will save you time and aggravation down the line. Check out the Tucker & Meltzer experts!
February 21st, 2012
Written by Anne R. Meltzer, CPA/ABV
Have you considered the ESOP Repurchase Obligation? This refers to the “put” right which obligates the company to purchase an employee’s shares. The majority of ESOP repurchases are due to employee terminations and retirements. Since both of these situations are fairly predictable, the repurchase obligation is also predictable and manageable.
The impact of the repurchase obligation on fair market value depends most strongly on the 1) percentage of stock owned by the ESOP, 2) distribution rules within the plan document and 3) the methods used to repurchase the shares. Read the rest of this entry »
February 13th, 2012
Written by Mark Norris
A valuation rebuttal report is a report that is used for litigation purposes whereby a critique is made of the valuation report of the opposing expert, and then a revised valuation conclusion is provided. The goals to be achieved with a rebuttal report include:
• Reduce fees to the client because a detailed appraisal report is not prepared;
• Communicate to the reader, potentially a “Trier of Fact” (Judge or Jury) that these are the areas that both experts agree on, and these are the areas where they do not agree; and
• As a result of the areas of disagreement, a revised value conclusion is provided. Read the rest of this entry »
February 2nd, 2012
Do you review valuation reports? Keep these common errors in mind when you get the next one. Make sure your report does not have them.
- Failure to clearly identify and adhere to the applicable standard of value
- Reliance on Rules of Thumb as a primary valuation method
- Indiscriminate use of Price/Earnings Multiples
- Failure to make normalization adjustments when valuing a controlling interest
- Failure to match capitalization rate with earnings base
- Not adjusting for market compensation for the owner.
- Failure to apply tax rates correctly
- Failure to understand and apply the appropriate standards (USPAP, AICPA, IRS, etc.)
- Utilizing an inappropriate premise or standard of value based on the valuation –specific facts and circumstances
- Failing to consider the guideline public company method when valuing smaller companies
Please contact us if you have any questions about this topic.
January 11th, 2012
I was recently named an expert in a litigation case where I was required to testify about the valuation of a person’s equity ownership interest in a business. During the process, it became apparent to me how difficult it was for a Trier of Fact (whether that be a Judge or a Jury) to understand not only how normalization adjustments were calculated, but why they were required in the first place. I realized how valuable the use of an organization chart would have been to explain the need for the normalization adjustments contained in my report. Read the rest of this entry »
December 1st, 2011
by Jennifer Rosenberg
What is Value?
Value can mean different things to different people, and that is the certainly the case when you are reading or requesting a business valuation. When we value a company, or a portion of a company, how we define value directly impacts… the value. We are going to talk about the standards of value and the levels of value. Read the rest of this entry »