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New Valuation Standards Announced June 24 2015

Posted on June 24, 2015 at 8:45 AM Comments comments (0)

On June 24, 2015, The National Association of Valuators and Analysts (NACVA) announced revised professional standards at its Annual Conference in New Orleans.   This is an important revision since the standards govern what must be considered and included in business valuation reports and expert reports.  A copy of the new standards is available at this link, otherwise, please feel free to contact me at [email protected].


The NACVA Conference began Monday, 6/22 and runs through 6/26.  I will be attending the following sessions:

  • Business Valuation and Financial Forensics Case Law Update
  • Industry Standards Update
  • Expert Witness Communications with Counsel
  • What You Can't See Has Value - The Valuation of Intangible Assets
  • Partnership Agreement and Analysis
  • Valuation and Damages Calculations in Cases Invovling Internet Infringement and Defamation (Watch those FACEBOOK posts~;)
  • Business Valuation Leading Edge Topics
  • Taking a Deeper Dive into the Lost Profits "But For" Worls
  • Valuiing Complex Debt and Equity Structures
  • Valuation of Businesses, Securities, and Intangible Assets for Bankruptcy Purposes


I am back in WA on Saturday!


If readers have questions on any of the above topics let me know.  Also, as President of the WA State NACVA Chapter, we will have four events this year; two of them in connection with Pacific Lutheran University in Tacoma that will bring together colleagues working with the IRS (watch those tax estate and gift tax returns!!), one in Lake Chelan, and another either in Belllevue or Spokane.

Goodbye from New Orleans!


The Business of Marijuana ... What is it Worth? What is the Return on Investment? (Just the facts please, don't blow smoke)

Posted on July 4, 2014 at 12:05 AM Comments comments (0)

July 7 2014 is an important date for many in Washington, including the State of Washington which expects to reap some tax revenue from the recreational users and the dispensaries that are about to expand or open and cater to the recreational crowd .... once regulatory approaval is received.  The pizza shops business will be booming! (Having fun here)  The first few weeks and perhaps months will be hectic for the new entrepreneurs, landlords, and state, city regulators.   In the interim, I will be taking note of the many developments.  While there may be some "coolness" or a hip factor being this type of entrepreneur, that will wear quickly once the compliance and tax paperwork and issues need to be addressed.  Add payroll and tax reporting requirements to the mix it then becomes readily apparent that this is a business and the ones that will prosper, acquire others, and eventually are sold for a premium are those that kept good records, had a good board of advisors (they were not just blowing smoke :)) and were proactive.


This being said, I will be co-writing an article with two other professionals on the valuation of CO and WA marijuana dispensaries.  This means that you may see me at these shops; I will be asking questions, looking at the products and getting a better handle on customer demand and choices.  Really?  Yes, really!  


One thing that we (he authors have noted) is that the initial investors and founders jumped in based on a gut feeling.  It is not quite like the 49'rs or GoldRush, but it is close.  I have asked for business plans and Return on Investment analysis and ... not succeeded. One thing that will eventually have to be dealt with is valuation of minority and majority interests in these establishments.  These are issues that arise in connection with divorces, death, disability and burn-out or lifestyle changes.  Outright saes will occur in CO and WA assuming the status does not change.  


Owners, of course, can choose to come up with their own values on their own. They did so when they filed their applications for the WA lottery and those that got the call, got many friends, family members and future former friends to invest.  While the business and financial analysis part has largely gone missing, courts will eventually get involved in disputes between the investors, founders and former friends and they may want to know more.  Investors may want to know more if they are being asked for serious $$ for land, security, stocking inventory or buying competitors.  


In short, these are legal businesses in WA (perhaps they will become legal in OR too) and expert knowledge will serve the many interested stakeholders.


If you are in this industry and are open to having one or some of us interview you, watch or ask you questions, let me know so I can share that with my co-writers!



Law Website is Up ,,, Now the Search Engines Need to Find It!

Posted on June 13, 2014 at 11:55 PM Comments comments (1)

My law practice website is finally up (about 2 months behind schedule), It is at www.rcastrolaw.com.  Check it out!


What struck me as I set it up was that there are other Castro attorneys in the US that also have an R initial in their name and they did not set up a website or secure a domain name.  Time will tell whether these other Castro's made a sound decision or fell asleep at the wheel.  I will be making some additional changes to each website to accomodate for credit card payment and also add some videos outlining issues and services.


If you have any suggestions regarding content, let me know!  

Copyright and Trademark Damages & Litigation - Friday

Posted on May 8, 2014 at 5:05 PM Comments comments (0)

This topic is one that could be of interest to my fellow NACVA BV professionals and the Chelan-Douglas Cty Bar Association. I have reached out and let's see if they are active and if they are active, the level of interest in this and other topics.  A roundtable discussion could work well--I think--if there is an interest.


IP Damages Calculation Webinar. Offer this to NACVA WA Chapter? Open to others that are not NACVA members? both WA NACVA and non-members, such as WSBA Attorneys too?

Posted on May 6, 2014 at 12:15 AM Comments comments (0)

As with the earlier post today, here is another good webinar that may be of interest to WA NACVA members and possibly attorneys.  This is material that could be of help to experienced and new attorneys and I am struggling with whether to approach the WSBA to bless this for credit and split the nominal fee paid.  Again, this is not material that the WSBA or the sections offer .... but should offer!

 

These Business and Intellectual Property Damages Webinars, together with the Legal Theory and Case Law Webinar, Forensic Accounting/Investigative Methodologies Webinar, and the Litigation Bootcamp for Financial Experts live training are required for individuals seeking the Master Analyst in Financial Forensics (MAFF) credential. Applicants must also meet prerequisite requirements and pass the MAFF proctored exam.

 

Program Content

 

These Business and Intellectual Property Damages Webinars focus on the legal foundations, methodology, best practices, and current trends in business damages and infringement of patents, trademarks, copyrights, and other intellectual property. The Webinars are based on Nancy Fannon’s The Comprehensive Guide to Lost Profits Damages for Experts and Attorneys, with contributing author Rebekah Smith, the preeminent book in the industry on business damages, which is included in the cost of registration (a retail value of over $300). Through case analysis, attendees will have the opportunity to identify and apply the most appropriate methodology in the analysis and formulation of damages opinions from the perspectives of both plaintiff and defendant. Attendees will learn how to build their damages analysis in a manner that will withstand the most rigorous challenges.

 

During the Webinars, the attendee will refresh themselves on basic economic damages concepts and then delve deeper into more advanced topics such as the differences between lost profits and loss of business value as well as

understanding when it is appropriate to apply one or both methods. The Webinars will also explore how legal theories, code sections, and case law govern business damages. Advanced concepts, such as how to conduct qualitative and quantitative analyses that will survive the court’s scrutiny; how revenue and profit projections can be impacted by risk; how business interruption insurance and damage claims collide; how to discount damage calculations, including the court’s view on discounting; how to prove new business damages; and how to identify other industry-specific issues that impact the damage calculation, will be covered. Other topics and techniques will be discussed, such as how motions can impact the financial expert and ways to protect oneself from Daubert challenges as well as other motions in limine. A case study will be used to identify and analyze the topics discussed clarifying subjects in question.

 

The Webinars will also present an overview of intellectual property and forms of intellectual property damages based on portions of Nancy J. Fannon’s The Comprehensive Guide to Lost Profits Damages for Experts and Attorneys, with

contributing authors Richard Hoffman and Richard F. Bero. A portion of the time will be used to discuss topical Federal Circuit decisions, key legal cases, and factors based on the fundamental Panduit and Georgia-Pacific cases, as well as recent cases addressing current issues such as the entire market value rule (EMVR) and comparable license agreements, among others. Other topics will include patent damage concepts and how valuation concepts and patented technology have an influence on determining the appropriate form of patent damages. A variety of case studies will be used to expand these concepts as well as trademark and copyright damages issues.

 

Learning Objectives

 

 

  • After completing this session, attendees will be able to:
  • Apply quantitative methodologies in the measurement of damages
  • Apply damages methods and models appropriate to the facts and circumstances (and the governing law)
  • Apply advanced damages concepts in preparing a damage calculation that will withstand scrutiny
  • Evaluate business interruption insurance and damage claims
  • Discuss forms of intellectual property damages
  • Explain the similarities and differences in utility patent, design patent, trademark, copyright, and trade secrets damages
  • List relevant cases addressing intellectual property damages
  • Apply valuation concepts to intellectual property damages
  • Identify the basic components to address in an intellectual property damages expert report
  • Describe and understand the recent history of the entire market value rule (EMVR)
  • Recognize the relevant considerations in whether or not license agreements are sufficiently comparable

 

 

Who Should Attend

 

CPAs, valuation experts, economists, and other financial professionals who render services designed to assist in the resolution of legal disputes involving financial matters.

 

The Business and Intellectual Property Damages Webinars are required training to obtain the Master Analyst in Financial Forensics (MAFF) credential.

 

Presenters

 

Richard F. Bero, CPA, CVA, ABV

 

Rebekah Smith, CPA, CVA, MAFF, CFF

 

Howard Zandman, CPA, CFF, MAFF


What is taught at a Commercial Damages Calculation Workshop? See here

Posted on May 6, 2014 at 12:05 AM Comments comments (0)

As NACVA's WA Chapter President, one of the issues that chapter presidents are asked to consider involves continuing education.  The other issue is whether to offer it to the base membership or expand the same to other professionals.  Do I offer the training to Washington State Bar attorneys and if I do, do I seek to qualify the training for continuing education?  I am unsure about the latter since that entails WSBA asking for a fee sharing agreement and being told that XYZ must be changed in order to offer CLE credit.  On the other hand, I know that this type of training is not being offered by the WSBA and this type of training would benefit attorneys.  What to do?


Here is a summary of one webinar I am listening in today (taught by colleagues of mine ... and very experienced lit support professionals too!). Let me know your thoughts about keeping it open or closed? Bite the "bullet" and seek to offer CLE credit in WA?

 

hese Commercial Damages and Lost Profits Webinars, together with the Legal Theory and Case Law Webinar, Forensic Accounting/Investigative Methodologies Webinar, and the Litigation Bootcamp for Financial Experts live training, are required for individuals seeking the Master Analyst in Financial Forensics (MAFF) credential. Applicants must also meet prerequisite requirements and pass the MAFF proctored exam.

 

Program Content

 

Financial forensics experts are often typically called upon in these matters to review and analyze the underlying foundational evidence and measure the lost profits and other related damages. For an expert’s analysis and conclusions to survive the rigors of the litigation environment, the expert’s work must be within the realm of conventional damages theory and be based upon generally accepted approaches and methods of damages measurement. In addition, the calculation of lost profits and other recoverable business damages are typically governed by federal, state, or other jurisdictional code sections and case law.

 

These Commercial Damages and Lost Profits Webinars of the MAFF curriculum focus upon the foundations and fundamentals of economic damages measurement, including alternative approaches and methodologies, notable code sections and case law, foundational evidence and research sources, reporting guidelines, and strategies embraced by the most effective economic damages experts. Financial experts are retained, among other areas, to perform, review, or opine on damage calculations. Different legal theories allow for different measures of damages. This specialty module will explore the accepted approaches used for the various types of economic damages as well as the accepted methodologies of damages calculations.

 

Focus of the curriculum will be on lost profit calculations, lost business value versus lost profits, and accounting for different industry and loss scenarios. The instructors will examine models and cases used in the measurement and presentation of economic damages, including economic and industry data. They will also provide an understanding of the integration of statistical and economic concepts into the formation of damages models.

 

Learning Objectives

 

After completing this session, attendees will be able to:

 

  • Apply the traditional methodologies used for economic damages
  • Explore and evaluate alternative approaches in the measurement of damages
  • Apply models used in the measurement and presentation of economic damages
  • Identify sources of information, including economic and industry data
  • Integrate the use of statistical and economic concepts into damages models
  • Discuss case law that impacts damages measurement

Who Should Attend

 

CPAs, valuation experts, economists, and other financial professionals who render services designed to assist in the resolution of legal disputes involving financial matters.

 

The Commercial Damages and Lost Profits Webinars are required training to obtain the Master Analyst in Financial Forensics (MAFF) credential.

 

Presenters

 

Michael Kaplan, CPA, ABV, CVA, MAFF

 

Rebekah Smith, CPA, CVA, MAFF, CFF

 

Howard Zandman, CPA, CFF, MAFF


Testing Emotionally Intelligent, Are You Ready for the Test?

Posted on May 2, 2014 at 6:55 PM Comments comments (0)

So, I got this e-mail from MindTools the other day with a poll re emotional intelligence .... Should I take this? not?  I think that with age I am maturing emotionally, but then again, who knows!:)  The survey is found at:

http://www.mindtools.com/pages/article/ei-quiz.htm?utm_source=nl&utm_medium=email&utm_campaign=29Apr14#np


The questions asked are insightful. I thought my score too was realistic. My impression is that ... perhaps with age, I am slightly wiser given the many ups and downs.  But then, I am also accutely aware that I also am left unsatisfied hearing platitudes and have little patience for those that are (in my opinion) full of themselves and emotionally needy or in need of contant recognition. It is in those instances when I wonder if I am actively listening and asking myself whether I am being too opinionated/ unfair? It is also in those instances when I wonder whether even more patience is needed, rather than deliberate action.  


Emotional intellegence is something that I think we all develop through life.  Taking a few minutes to answer was easy.  Answering these questions provided me a measure of benchmarking my E.I. and hopefully a way of objectively reassessing my strengths and weaknesses.   Take the test and try answering objectively.


Perhaps the next time that meet, we will be more productive and objective.  The "noise" will not distract us or shape who we are or shold be to make a positive impact.