Our analysts frequently deliver conference speeches
and author journal articles on topics related to business and intangible asset valuation,
forensic analysis, and financial advisory services. The presentations are delivered at
seminars and conferences of national and local bar associations, national and state CPA
societies, estate planning associations, taxation institutes, and valuation associations,
to name a few. The presentation materials from some of these conference speeches are
available here.
Our analysts frequently publish in accounting, finance, and legal professional
journals. And, our analysts frequently author technical issue white papers for
professional organizations. Recent journal articles and white papers authored by
Willamette Management Associates analysts are also available here.
At the bottom of this section we list articles authored by our analysts that have
recently appeared in publications
that are not readily available online.
Business Valuation Issues in Bankruptcy
This presentation was delivered on May 20, 2013, by Robert Reilly, a managing director of our firm, at the New York State Society of CPAs, Foundation for Accounting Education meeting.
Robert’s presentation discussed 10 common bankruptcy business valuation services. He also explored 10 common bankruptcy valuation issues. And, finally, Robert discussed 10 analyst caveats for performing bankruptcy valuations. The handout materials from this presentation are available on our website.
Analysis of Reasonable Compensation for Unique Companies or Unique Employees.
This presentation was delivered on May 22, 2013, by Robert Reilly a managing director of our firm, at the at the Illinois CPA Society Business Valuation Symposium in Chicago.
Robert’s presentation discussed reasons to conduct a reasonableness of compensation analysis. He summarized alternative standards by which to determine reasonableness of compensation. He then explored two categories of reasonableness of compensation analysis: multiple factor test analyses and independent investor test analyses. He presented an illustrative example of each of these analyses.
By Robert Reilly, a managing director of the firm, published in the May 2013 issue of the American Bankruptcy Institute Journal. This article is reprinted with the publisher’s permission.
Robert’s article summarizes the potential income tax consequences to debtors, creditors and purchasers of debt in connection with a debt modification. He discusses the provisions of Treasury Regulation 1.1001-3, titled “Modifications of Debt Instruments.”
Robert Reilly, a managing director of our firm, along with Dr. Israel Shaked, was featured in a podcast produced by the American
Bankruptcy Institute.
Robert and Israel discuss their new book, A Practical Guide to Bankruptcy Valuation, and other issues
involved in the complex task of valuing a bankrupt or financial distressed business.
By Robert Reilly, a managing director of the firm, published in the Spring 2013 issue of Dunn on Damages. This article is
reprinted with the publisher’s permission.
Robert’s article summarizes the types of documents that should be considered in an intangible asset economic damages analysis.
The article goes on to summarize the analyst’s due diligence procedures related to documents that may be considered in the
measurement of lost profits, reasonable royalty rates, or lost business value. It considers the analyst’s discussions with legal
counsel with regard to the selection of an economic damages measurement method. And, the article summarizes the analyst’s
consideration of judicial precedent in the economic damages analysis.
BVR/AHLA Guide to Healthcare Industry Compensation and Valuation
Robert Reilly, a managing director of the firm, contributed a chapter to the book, BVR/AHLA Guide to Healthcare Industry
Compensation and Valuation, published by Business Valuation Resources. Robert's chapter is titled "Valuation Issues Affecting Tax-
Exempt Healthcare Organizations." The book can be ordered through Business Valuation Resources by clicking the book cover or
clicking here.
“Due Diligence Procedures for Intangible Asset Economic Damages”
By Robert Reilly, a managing director of the firm, published in the January/February 2013 issue of The Value Examiner. This
article is reprinted with the publisher’s permission from The Value Examiner, a bi-monthly publication of the National
Association of Certified Valuation Analysts.
This article discusses the types of documents analysts need to review in an intangible asset economic damages analysis. It
explores the due diligence required in legal claims, causation claims, and damages claims. The article then goes on to discuss
documents that may be considered to measure lost profits, reasonable royalty rates, or lost business value. Finally, the article
examines selection of an economic damages measurement method.
“Estate of Mitchell: Practical Guidance on Valuation Practice”
By Robert Reilly, a managing director of the firm, published in the November/December 2012 issue of The Value Examiner.
This
article is reprinted with the publisher’s permission from The Value Examiner, a bi-monthly publication of the National
Association of Certified Valuation Analysts.
This article explores the recent Tax Court decision, Estate of Mitchell, T.C. Memo 2011-94. At issue in this case were
fractional leased-fee interests in two real estate properties and two paintings. Robert discusses such valuation issues as using
formula valuations to value property transfers and using out-of-date valuations. He also discusses two strategies for mitigating
the risk of a valuation examination.
“The Gate Clause: Does It Warrant a Valuation Adjustment?”
By Brian Holloway and J. Wesley Pennington III, published in the October 2012 issue of Trusts & Estates. This article is
reprinted with the publisher’s permission from Trusts & Estates, a Penton Media monthly publication.
This article discusses the impact of a gate clause (also called a “lock-up provision) on the value of a hedge fund interest, or
other investment fund interest. The article explores how to adjust the discount for lack of marketability to incorporate the
effect of the gate clause
Analysis of Reasonable Compensation for Unique Companies or Unique Employees
This presentation was delivered on November 12, 2012, by Robert Reilly, managing director at Willamette Management Associates,
to the AICPA Forensic & Valuation Services Conference in Orlando, Florida.
Robert discussed reasons to conduct an analysis of reasonable compensation, alternative standards to determine reasonable
compensation, the multiple factor test, and the independent investor test. He presented illustrative examples of the various
tests of reasonable compensation.
Ethics Problems, Bias, Standard Violations & Overreaching in Litigation
This presentation was delivered on November 13, 2012, by Robert Reilly, managing director at Willamette Management Associates,
along with Brad Preber, to the AICPA Forensic & Valuation Services Conference in Orlando, Florida.
Robert and Brad discussed compliance with AICPA and other professional association standards, data limitations and reliability
issues, and due diligence of client-supplied information. They also discussed how to handle demanding legal counsel.
Health Care Valuation: A Moving Target or More of the Same
This presentation was delivered on October 8, 2012, by Charles Wilhoite, managing
director and director of health care valuation services at Willamette Management
Associates, to the Advanced Business Valuation Conference of the American Society of
Appraisers in Phoenix, Arizona.
The presentation focused on changes in transaction activity in the health care sector,
changes in control premiums paid in transactions, changes in health care metrics (revenue
and profit growth, rate of return, etc.), changes in valuation multiples, and the impact
of health care reform on the industry.
Health Care Valuation: An Interdisciplinary Approach
This presentation was delivered on October 9, 2012, by Charles Wilhoite, managing
director and director of health care valuation services at Willamette Management
Associates, along with Sandra Tropper, Edward Detwiler, Ernest Demba, and Robert James
Cimasi, to the Advanced Business Valuation Conference of the American Society of
Appraisers in Phoenix, Arizona.
This panel discussion focused on how various disciplines can interact in a health-care-
related valuation. Business Valuation, real estate appraisal, tangible asset appraisal,
and intangible asset analysis all can play important roles in the analysis of a health
care entity. The panelists then reviewed each of these disciplines and discussed how to
coordinate them. Finally, the panelists discussed the recently formed healthcare special
interest group of the American Society of Appraisers.
“Valuing the Employee Purchase of Employer Company Stock—Part II”
By Robert F. Reilly, published in the October 2012 issue of Business Valuation
Alert.
This article is reprinted with the publisher’s permission from Business Valuation
Alert,
a monthly newsletter on business valuation planning published by CCH, INCORPORATED a
Wolters Kluwer business. Copying or distribution without the publisher’s permission is
prohibited. To subscribe to Business Valuation Alert or other CCH journals or
newsletters, please call 800-449-8114 or visit www.tax.cchgroup.com..
This article describes common contractual rights and privileges that a valuation analyst
should consider in the employee purchase valuation of employer company stock. It then
summarizes the impact of these contractual rights and privileges on the employer stock
valuation.
Willamette Management Associates Whitepaper:
Valuation Analyst Considerations in the C Corporation Conversion to Pass-Through Entity
Tax Status
By Robert F. Reilly, CPA
For a variety of economic and taxation reasons, 2012 may be a particularly good time for
a closely held C corporation to convert to pass-through entity tax status. As summarized
in this white paper, there are both tax costs and tax benefits associated with such a
business tax status conversion. However, both the costs and benefits are affected by the
conversion date valuation of the taxpayer entity assets. Therefore, a contemporaneous
valuation of the closely held business assets is an important component of the tax status
conversion decision.
Intangible Asset Valuation—Cost
Approach Methods and Procedures
This presentation was delivered on September 20, 2012, by Robert Reilly, managing
director at Willamette Management Associates, to the Business Valuation Association
meeting in Chicago, Illinois.
The presentation discusses common reasons to value intangible assets, common types of
health care intangible assets, generally accepted intangible asset valuation approaches,
and the valuation process. It then goes on to explore reasons to use the cost approach,
cost approach methods, remaining useful life considerations, and obsolescence measurement
procedures.
BVR/AHLA Guide to Healthcare
Valuation,
3rd edition
Robert Reilly, a
managing director of
the firm, contributed a chapter to the book,
BVR/AHLA Guide to Healthcare Valuation, 3rd edition, published by Business Valuation
Resources. Robert's chapter is titled "Valuation Issues Affecting Tax-Exempt Healthcare
Organizations." The book can be ordered through Business Valuation Resources by clicking
the book cover or clicking here.
“Reasonable Compensation for Corporate Owner/Employees”
By John C. Ramirez, published in the July/August 2012 issue of Valuation
Strategies, a
Thomson Reuters publication. This article appears in and is reproduced with the
permission of Valuation Strategies, Vol. 15, No. 6, July/August 2012. Copyright
(c) 2012
Thomson Reuters/WG&L. All rights reserved.
The reasonableness of shareholder/employee compensation is often a highly controversial
issue, with significant tax-related consequences, that must be understood by valuations
analysts. This discussion focuses on the generally accepted factors and methods that
should be considered during a reasonable compensation analysis.
This webinar, sponsored by the American Institute of Certified Public Accountants
(AICPA), was presented on July 11, 2012, by Robert Reilly, managing director at
Willamette Management Associates, Marilee Lau (retired) of KPMG, and Marcus Aron, CPA.
This webinar explored auditors’ responsibilities and related auditing standards relative
to shares of stock held by employee stock ownership plans. It discussed recent concerns
of the Department of Labor relating to valuations of employer company stock. The webinar
also explored generally accepted methodology and standards for valuations of employer
corporation stock and fairness opinions related to ESOP transactions.
Willamette Management Associates Whitepaper:
Practical Procedures for a Debtor Corporation to Realize the Value of its Intellectual
Property
By Robert F. Reilly, CPA
Most debtor corporation managements make serious efforts to manage their company’s
working capital assets and tangible assets. However, many debtor corporation executives
assign less importance to the management of the company’s commercial intellectual
property. Nonetheless, in many industries, intangible assets (including intellectual
property) account for a large portion of the typical debtor corporation’s total business
enterprise value. There are numerous procedures that a debtor corporation can implement
to more effectively manage its IP. This white paper summarizes ten procedures that the
typical debtor corporation can perform to more effectively control and more efficiently
exploit its IP. In particular, this white paper explains how a valuation analyst can help
the debtor corporation management to (1) inventory, control, and appraise the debtor
company’s IP and (2) maximize the value of the debtor company’s IP.
By Robert Reilly, published in the May/June 2012 issue of The Value Examiner, a bi-
monthly publication of the National Association of Certified Valuation Analysts.
This is a book review of the book Pricing the Future: Finance, Physics, and the 300-
Year
Journey to the Black-Scholes Equation, by George Szpiro, Ph.D. Robert Reilly describes
this book as an anthology
of many stories—about Dutch tulip bulb traders, Jewish mathematicians, German
physicists, American finance analysts, and a multinational collection of academicians. He
writes that Pricing the Future
presents a very interesting and informative story, and he points out that Szpiro is an
excellent storyteller. Robert recommends this book highly as a “vacation read” for anyone
with a financial background.
“Mastering Intellectual Property Transfer Price Analysis”
By Aaron M. Rotkowski and Scott R. Miller, published in the May/June 2012 issue of the
Valuation Strategies,
a Thomson Reuters/WG&L publication.
This article addresses issues an analyst may encounter when applying the procedural
guidance provided by Internal
Revenue Code Section 482 and the corresponding regulations with regard to the
calculation of a fair, arm’s-length
royalty rate for the intercompany transfer of intellectual property between a
multinational parent company and its
controlled foreign subsidiaries.
Proving or Contesting Debtor Insolvency under the Balance Sheet Test: Analyzing
Insolvency in Preference and
Fraudulent Transfer Litigation
This webinar, sponsored by Strafford Publications, was presented on May 10, 2012, by
Robert Reilly, managing director
at Willamette Management Associates, Corey R. Weber of Ezra Brutzkus Gubner, and
Christopher Harris of Latham &
Watkins.
The webinar discussed various definitions of insolvency and the burden of proof for
insolvency. The presenters
reviewed the various tests for insolvency (i.e., the balance sheet test, the capital
adequacy test, and the cash flow
test). In particular, the presenters focused in on the balance sheet test.
Do M&A Transaction Prices Reflect Fair Market Value for Ad Valorem Property Tax Purposes?
By Travis Lance, published in the May 2012 issue of the Journal of Multistate
Taxation and Incentives. This
article appears in, and is reproduced with the permission of, the Journal of
Multistate Taxation and Incentives,
Vol. 22, No. 2, May 2012. Copyright (c) 2012 Thomson Reuters/WG&L. All rights reserved.
One market approach valuation method that is sometimes used in a unit principle
valuation analysis is the guideline
merged and acquired company method. The guideline merged and acquired company method
values the taxpayer property by
applying valuation pricing multiples extracted from actual purchases of guideline (or
comparative) operating
businesses. The analytical issue associated with the use of the guideline merged and
acquired company method is that it
may overstate the fair market value of the subject property. This value overstatement
may occur because the prices paid
in merger and acquisition (M&A) transactions are often greater than fair market value
prices. This discussion explains
some of the reasons why corporate acquirers sometimes pay more than fair market value
prices in M&A transactions. And,
this discussion explores empirical data to support the conclusion that market-based
transaction prices often represent
a value other than (and greater than) fair market value.
“The Use and Misuse of Transaction Data in Valuations Prepared for Property Tax Purposes”
By Aaron M. Rotkowski, Richard G. Smith, and John C. Ramirez, published in Volume 9,
Issue 2, 2012, of the Journal
of Property Tax Assessment & Administration, a publication of the International
Association of Assessing Officer
(IAAO).
The article (1) addresses whether the purchase price represents the fair market value of
an acquired business
enterprise and (2) summarizes the valuation differences between the estimation of fair
value of a taxpayer company’s
taxable unit for purchase accounting purposes and the estimation of its fair market
value for property tax purposes.
Property tax assessors can consider the issues addressed in this article to determine
how relevant transaction data are
to the fair market value of a taxpayer company’s taxable unit.
“What Lawyers Need to Know about the Employee Purchase of the Employer Company” (Part 2)
By Robert Reilly, published in the April 2012 issue of The Practical Lawyer. The
Practical Lawyer is published
by ALI-ABA.
The first part of this article summarized the generally accepted business/stock
valuation approaches with regard to
the target employer company. This part discussed how the purchase of employer stock may
be financed, various purchase
transaction scenarios, factors that affect different valuation considerations,
transaction structure considerations,
employer company transaction structuring issues, economic interests of the buyers and
the sellers, transaction
substance, and transaction form.
America Invents Act and Intellectual Property Valuation
This webinar, sponsored by West Legal Education, was presented on April 17, 2012, by
Robert Reilly.
The webinar provided an overview of the Leahy-Smith America Invents Act (AIA) and
discussed its impact on patent
litigation and valuation. Robert then discussed the various patent valuation practices
and procedures. Finally, Robert
presented an overview of reporting a patent valuation and defending a patent valuation
in court.
“The Property Tax Implications of Lease Accounting GAAP Changes”
By John Ramirez, published in the February 2012 issue of the Journal of Multistate
Taxation and Incentives.
This article appears in, and is reproduced with the permission of, the Journal of
Multistate Taxation and
Incentives, Vol. 21, No. 10, February 2012. Copyright (c) 2012 Thomson Reuters/WG&L.
All rights reserved.
Under current U.S. generally accepted accounting principles, the assets and the
liabilities of operating leases are
not recorded on the balance sheet. The International Accounting Standards Board (IASB)
and the Financial Accounting
Standards Board (FASB) are proposing significant changes to the current lease accounting
standards. As a result,
virtually all leases, including operating leases, will be reported on a lessee
taxpayer’s balance sheet. These proposed
changes may have a significant impact on the property tax valuations of many industrial
and commercial taxpayers,
particularly capital-intensive taxpayers that lease much of their real and personal
property.
“Defining the Intangible Asset Valuation Assignment”
By Robert Reilly, published in the Journal of Property Tax Assessment and
Administration, Volume 8, Number 4,
2011, a publication of the International Association of Assessing Officers (IAAO).
This article summarizes the following procedures related to defining the intangible
asset valuation assignment:
defining the purpose and the objective of the intangible asset valuation, selecting the
appropriate standard of value,
selecting the appropriate premise of value, describing the subject intangible asset,
describing the subject bundle of
legal rights, selecting the appropriate valuation date, and defining the valuation
assignment in a client engagement
letter. The article focuses on these valuation assignment procedures from the
perspective of a property tax valuation
engagement.
“Valuation of the Debtor Company Intellectual Property”
By Bob Schweihs, published in the Journal of Business Valuation, 2011 Volume 2, a
publication of The Canadian
Institute of Chartered Business Valuators.
This article discusses the importance of defining the objectives and requirements of the
valuation assignment. Topics
covered include the purpose of the valuation in a bankruptcy environment, data gathering
and due diligence, generally
accepted valuation approaches and methods, and attributes of an effective intellectual
property valuation report.
"What Lawyers Need to Know About The Employee Purchase Of The Employer Company" (Part 1)
By Robert Reilly, published in the February 2012 issue of The Practical Lawyer, a
publication of American Law
Institute-American Bar Association (ALI-ABA).
This article is part one of a two-part article series. This first article in the series
focuses on the pricing (i.e.,
valuation) aspects of the employee (or other insider) offer to purchase the closely held
employer corporation. The
second article in the series will focus on the structuring and financing aspects of the
employee acquisition
transaction.
By Robert Reilly, published in the December 2011 issue of the ABI Journal, a
publication of The American
Bankruptcy Institute.
Robert's article discusses the various aspects of defining the assignment of valuing
intangible assets for bankruptcy
purposes. The aspects of the assignment that should be defined include (1) the objective
of the analysis, (2) the
purpose of the analysis, (3) the standard of value, (4) the premise of value, (5) the
highest and best use, (6) the
bundle of legal rights to be appraised, and (7) the valuation date.
By Robert Reilly, published in the February 2012 issue of the ABI Journal, a
publication of The American
Bankruptcy Institute.
This article summarizes the generally accepted procedures related to the preparation of
a debtor corporation solvency
opinion within the context of a bankruptcy-related fraudulent transfer claim.
By Robert F. Reilly, published in the January 2012 issue of Business Valuation
Alert. This article is reprinted
with the publisher’s permission from Business Valuation Alert, a monthly
newsletter on business valuation
planning published by CCH, INCORPORATED a Wolters Kluwer business. Copying or
distribution without the publisher’s
permission is prohibited. To subscribe to Business Valuation Alert or other CCH
journals or newsletters, please
call 800-449-8114 or visit www.tax.cchgroup.com.
This article is the seventh in a 10-part series related to the valuation of commercial
intellectual property. This
article describes and illustrates the income approach valuation methods.
Forensic Analysis Expert Witness Testimony: Defending Your Expert Report and Expert
Testimony
This AICPA webinar was presented on February 2, 2012, by Robert Reilly.
Providing expert testimony in court can be a challenging and rewarding experience for
analysts who are qualified and
properly prepared. Robert discussed various types of forensic analysis engagements,
steps in a forensic analysis
assignment, and common mistakes to avoid.
“What Lawyers Need to Know about the Employee Purchase of the Employer Company” (Part 1)
By Robert Reilly, published in the February 2012 issue of The Practical Lawyer.
The Practical Lawyer is
published by ALI-ABA.
This article summarizes the generally accepted business/stock valuation approaches
with regard to the target
employer company. It considers the effect on value of various factors such as levels of
value, security-specific stock
rights and privileges, and financing of the company purchase. The second part of this
article will appear in the April
2012 issue of The Practical Lawyer.
“A Valuation Practitioner’s Perspective of the Discount for Lack of Marketability Job
Aid for IRS Valuation
Professionals”
By Kevin Zanni, published in the January 2012 issue of Business Valuation Alert.
This article is reprinted with
the publisher’s permission from Business Valuation Alert, a monthly newsletter on
business valuation planning
published by CCH, INCORPORATED a Wolters Kluwer business. Copying or distribution
without the publisher’s permission is
prohibited. To subscribe to Business Valuation Alert or other CCH journals or
newsletters, please call 800-449-
8114 or visit www.tax.cchgroup.com.
This article provides a summary of the recent IRS Job Aid. Kevin provides an
interpretation of certain of the Job Aid
positions. He also discusses the general reaction from the valuation profession with
respect to this Job Aid.
“Sale of Private Company Stock to Employees and Other Parties”
By Robert F. Reilly, published in the January 2012 issue of The CPA Journal.
The CPA Journal is
published monthly by The New York Society of Certified Public Accountants.
This article describes the procedures that the CPA valuation analyst typically uses to
value a closely held business
or the stock of a closely held business. In addition, the article discusses how the CPA
valuation analyst could assist
the closely held business owner in structuring the sale of the business enterprise.
This presentation was delivered to the 2012 Arizona Family Law Institute in Scottsdale,
Arizona, January 20, 2012, by
Charles Wilhoite.
Charles discussed the definition of intangible assets in general versus the definition
of goodwill. He presented an
example of the valuation of goodwill in a professional practice. Charles then discussed
the concept of “celebrity
goodwill,” and he summarized generally accepted valuation methods for valuing celebrity
goodwill
“The Relevance of Fair Value Measurements for Property Tax Purposes,”
by Aaron Rotkowski, Richard Smith, and John Ramirez, published in the January 2012 issue
of Journal of Multistate
Taxation and Incentives, a Thomson Reuters publication.
This article appears in, and is reproduced with the permission of, the Journal of
Multistate Taxation and
Incentives, Vol. 21, No. 9, January 2012. Copyright 2012, Thomson Reuters/W6&L. All
rights reserved.
Taxpayers should not accept on faith alone the taxing authority’s claim that fair value
equals fair market value. This
article explains when fair value analyses are and are not relevant to a fair market
value valuation.
Willamette Management Associates White Paper:
Intellectual Property Valuation Considerations
by Robert F. Reilly, CPA
There are numerous reasons why Willamette Management Associates analysts are asked to
value an owner/operator's
intellectual property assets. First, this white paper summarizes the valuation
implications of the 2011 America Invents
Act. Second, this white paper summarizes (1) many of the reasons to conduct the
intellectual property valuation, (2)
the elements of the intellectual property valuation assignment, and (3) the data
gathering and due diligence process.
Third, this white paper describes and illustrates the three generally accepted
intellectual property valuation
approaches, specifically: cost approach valuation methods, market approach valuation
methods, and income approach
valuation methods. Finally, this white paper comments on (1) the valuation synthesis and
conclusion process, (2) the
attributes of an effective intellectual property valuation report, and (3) what type of
professional should perform the
intellectual property valuation.
"Construction Company Economic Damages Measurements"
Robert F. Reilly, managing director Chicago office, authored this article that was
published in the November/December
2011 issue of Construction Accounting and Taxation.
This article describes the types of breach of contract and tort damages that a
construction company may experience in
the normal course of business. And, this article focuses on the generally accepted
methods and procedures for
estimating the related lost profits and other economic damages measurements. Robert is
also proud to start a new year
on the board of advisers and contributors for Construction Accounting and Taxation.
"What Appraisers, Accountants, and Attorneys Need to Know About Business Valuation-
Related Issues in Estate Planning"
webinar for the AICPA Nations Leading Experts series,
presented on November 3, 2011, by F.A. “Chip” Brown and Curtis R. Kimball.
Chip and Curt discuss best practices for estate planning-related business valuations,
the valuation analyst’s various roles in estate planning, valuation issues in the
drafting of company/partnership documents, and recent out-of-court valuation discount
settlements.
“How to (And How Not To) Estimate the DLOM for Controlling Ownership Interests,”
by Aaron Rotkowski, published in the Fourth Quarter 2011 issue of Business Appraisal
Practice, a publication of the Institute of Business Appraisers (IBA).
This article discusses the discount for lack marketability (DLOM) for controlling
ownership interests. In particular, this article focuses on (1) the rationale for a DLOM
for a
controlling ownership interest, and (2) common errors that valuation analysts make when
estimating a DLOM for a controlling ownership interest.
MRI Associates v. Saint
Alphonsus: Anatomy of a $52 Million Decision
This presentation was delivered to the American College of
Trial Lawyers Business Valuation
and Economic
Damages Seminar, November 4, 2011, by Charles Wilhoite.
Understanding and
Implementing the Income Approach
This webinar presentation was delivered to the American
Institute of Certified Public
Accountants,
September 28, 2011, by Charles Wilhoite and Daniel Lynn.
“Estimating Stock Price Volatility in the Black-Scholes-Merton Model"
by Aaron Rotkowski, published in the November/December 2011 issue of The Value
Examiner, the publication of the National Association of Certified Analysts
(NACVA).
This article (1) presents a list of common reasons why valuation analysts are asked to
estimate the fair market value of closely held company stock options, (2) discusses
the generally accepted analytical procedures that can be used to estimate stock price
volatility for closely
held company stock, and (3) describes a number of factors that the valuation analyst
should
consider when making the option pricing model (OPM) volatility estimate.
Intellectual Property Valuation Approaches and Methods
This presentation was delivered to the Business Development Academy and Certified Patent
Valuation Analysis
Webinar, November 10, 2011, by Kevin Zanni and Robert Reilly.
Economic and Market Impact on Upcoming
Year-End Valuations
This presentation was delivered to The ESOP Association, New South Chapter Fall
Conference, October 5-6,
2011, by F.A. “Chip” Brown and Adrian Loud.
Frank A. “Chip” Brown recently participated in a leading expert panel
presentation at The Big 5 Conference hosted by the New South Chapter of The ESOP
Association. Chip’s presentation focused on the impact of the recent economic and market
conditions on upcoming year-end valuations of ESOP sponsor companies.
Interview with Robert Reilly Robert Reilly, managing director of our firm, was interviewed
at the 2010 IBA/NACVA Consultants' Training Institute in Miami as part of their
“Conversations with the
Masters” series.
Valuing a Real Estate Undivided Interest in the Marital Estate
This article, by Robert F. Reilly, was published in the Fall 2010 issue of the American
Journal of Family Law.
A Bankruptcy Perspective in Valuation Engagements – In Good Times and in Bad Times
This webinar presentation was delivered to the American Institute of Certified Public
Accountants, May 5, 2010, Robert
F. Reilly and R. James Alerding.
Sources and Uses of Available Cost of Capital Data
This webinar presentation was delivered to the
American Institute of Certified Public Accountants
Cost of Capital Webinar Series,
January 27, 2010, by Robert F. Reilly.
The nation's premier, peer-reviewed tax law journal, published by the American Bar
Association Section of
Taxation, published the article, "The Discount for Lack of Marketability: Update on
Current Studies and Analysis of Current Controversies," written by Robert Reilly, firm
managing director, and manager Aaron Rotkowski, in its Fall 2007 edition.
The articles listed below are not readily available online. Nevertheless, we would
like our visitors to be aware of
some of the recent articles written by our analysts and published in professional
journals.
Robert Reilly, a managing director of our firm, testified earlier this year at a
hearing
of the U.S. Department of Labor Employee Benefits Security Administration regarding a
proposed change to the definition of the term “fiduciary.” Robert’s testimony was
discussed in the August 15, 2012, issue of FVS News, the newsletter for members
of the
AICPA Forensic and Valuation Services section. According to FVS News, “[Robert’s]
testimony discussed the fact that many CPAs performs business valuation services for many
employee benefit plans, and that ‘treating the sponsor company valuation analyst as a
fiduciary will be disadvantageous to benefit plan participants.’” The AICPA has also sent
two comment letters to the DOL. The DOL is still debating this issue. A final definition
has not yet been issued.
Charlene Blalock, editor of Insights and a research associate in our Portland
office, authored an article
that appeared in the Spring 2012 issue of the American Journal of Family Law. The
title of Charlene’s article is
“Professional Forensic Designations: Evaluating Expert Witness Credentials.” The article
provides an overview of the
importance of professional designations for those analysts who provide expert witness
testimony and other litigation
support services. Charlene provides a brief summary of the common professional
credentials found in the
business/security valuation and forensic analysis discipline. She discusses the basic
requirements for each
professional designation and provides a table that compares the requirements of each
designation.
Bob Schweihs authored an article that appeared in the October issue of The
Licensing Journal. The
Licensing Journal is published by Aspen Publishers. The title of Bob's article is
"The Rule of Law Overrules the
Rule of Thumb." In certain types of patent infringement litigation, courts expect to
hear evidence of what royalty rate
would have been reached, hypothetically, as if no infringement had occurred. Courts want
to know because a recognized
remedy that is available for patent infringement is an amount "in no event less than a
reasonable royalty for use made
of the invention by the infringer." Bob's article explains the 25 percent rule of thumb,
methods available for
measuring the value of a patent, and alternative remedies available to measure economic
damages from patent
infringement when the 25 percent rule of thumb is not allowed.
Robert Reilly authored an article that appeared in the January/February 2012 issue of
Construction Accounting and
Taxation. Construction Accounting and Taxation is published by Warren Gorham
& Lamont, a division of
Thompson Reuters. The title of Robert's article is "Like-Kind Exchange Safe Harbor
Provisions When QI Defaults Due to
Bankruptcy or Receivership." Many construction industry participants are involved in
Internal Revenue Code Section 1031
like-kind exchange transactions. During the last few years, many of these like-kind
exchange transactions have failed
because the qualified intermediary (or QI) filed for bankruptcy protection. IRS Revenue
Procedure 2010-14 provides new
relief for taxpayers involved in a like-kind exchange that was not completed when the QI
defaulted due to bankruptcy or
receivership. This article summarizes this taxpayer problem and the associated taxpayer
relief.
Robert Reilly authored an article that was published in the winter 2011 issue of the
Journal of Property Tax
Assessment & Administration. That journal is published by the International
Association of Assessing Officers (the
IAAO). The title of Robert's article is "Defining the Intangible Asset Valuation
Assignment." This article summarizes
the generally accepted procedures for (1) identifying and (2) valuing the intangible
assets owned by industrial and
commercial taxpayers. Many taxing jurisdictions do not assess property tax on the value
of the corporate taxpayer
intangible assets. However, such intangible assets are often included in the value of
(1) special purpose properties
and (2) centrally assessed (or utility-type) taxpayers. This discussion explains how to
extract the value of commercial
intangible assets from the overall value of the taxpayer property or unit.
Robert Reilly, firm managing director, authored an article that appeared in the
fourth quarter 2011 issue of
Business Appraisal Practice. Business Appraisal Practice is the peer-
reviewed journal of The Institute of
Business Appraisers. The title of Robert’s article is “The Business Appraiser and
Intangible Asset Economic Damages.”
The owner/operator of a commercial intangible asset can suffer economic damages. The
damages can be caused by a tort
(e.g., an intellectual property infringement) or a breach of contract (e.g., a breach of
license agreement). In such
cases, the owner/operator (or the legal counsel) often retains a business appraiser to
measure the lost profits. This
article describes damages analysis terminology and relevant analysis dates. In
particular, this article summarizes the
generally accepted intangible asset damages approaches and methods. The article also
describes factors the business
appraiser should consider (including income tax considerations) in the damages
analysis.
Robert Reilly (managing director in our Chicago office) authored an article that
appeared in the Winter 2011 issue
of Employee Relations Law Journal. That journal is published by Aspen Publishers,
a division of Walters Kluwer.
The title of Robert's article is "Considerations in the Closely Held Company Stock Sales
to an ESOP Versus a Non-ESOP
Buyer."
Robert's article summarizes the common levels of value, contract rights, compensation
motivations, and other
differences between the sale of company stock to an employee stock ownership plan (ESOP)
compared to the sale of the
same company stock to a key employee private equity firm, or a key supplier or customer.
This article explains how
these differences could impact the company value conclusion. And, this article describes
how the financing of the stock
sale transaction could also impact the company value conclusion.
Robert Reilly (a managing director in our Chicago office) authored an article that
was published in the Winter 2012
issue of American Journal of Family Law (AJFL). AJFL is published by Wolters
Kluwer law and business publishers.
The title of Robert's article is "Valuation of Intangible Assets in Divorce Cases."
This article discusses how many marital estates include professional licenses,
intellectual property, personal
goodwill, and other intangible assets. In addition, many marital estates include
ownership interests in professional
practices and other intangible asset-intensive businesses. This article summarizes the
procedures for identifying
intangible assets and the approaches and methods for valuing intangible assets.
Robert F. Reilly (managing director, Chicago office) authored an article that appeared
in the January 2012 issue of
The CPA Journal. The CPA Journal is published monthly by The New York
Society of Certified Public
Accountants. The title of the article is “Sale of Private Company Stock to Employees and
Other Parties.” This article
describes the procedures that the CPA valuation analyst typically uses to value a
closely held business or the stock of
a closely held business. In addition, the article discusses how the CPA valuation
analyst could assist the closely held
business owner in structuring the sale of the business enterprise.
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Robert Reilly, a managing director of the firm, contributed a chapter to the book, BVR/AHLA Guide to Healthcare Industry
Compensation and Valuation, published by Business Valuation Resources. Robert's chapter is titled "Valuation Issues Affecting Tax-
Exempt Healthcare Organizations." The book can be ordered through Business Valuation Resources by clicking the book cover or
clicking here.
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