Michael B. Lehner, CPA/ABV, CFE, ASA
732-412-3825
MLehner@zbtcpa.com
February 7, 2020
Searching for hidden assets and unreported income in divorce

Searching for hidden assets and unreported income in divorce

When high net worth individuals file for divorce, both sides have a financial incentive to hide assets owned by their spousal “partnership.” So, it’s important to inventory the marital estate as soon as possible. This article discusses some ways spouses may attempt to conceal their wealth and techniques that financial experts use to investigate.
October 22, 2019
levels of value in business valuation

What are the three levels of value in business valuation?

The level of value used in a business valuation may affect an expert’s analyses and techniques. This article explains how experts determine the appropriate level of value and why it’s critical to make this determination before work begins.
October 8, 2019
Business valuation experts “normalize” owners’ compensation adjust reasonable level.

Adjusting owners’ compensation in business valuation

Owners of privately held businesses may draw large salaries because of tax advantages or take little or no salary to enhance the company’s reported earnings. In these cases, the valuation expert needs to “normalize” owners’ compensation and adjust it to a reasonable level. This article identifies factors that valuators consider in determining reasonable owners’ compensation.
September 6, 2019
hidden assets fraud, divorce cases business valuation equitable distribution

Where’s the money? Ensuring fair outcomes in divorce cases

Allegations of hidden assets, or even fraud, can muddy the waters and heighten tension in divorce cases, making a fair resolution difficult. Especially when a private business interest is involved, valuation and forensic accounting expertise is key in helping spouses equitably divide their assets. This article discusses some strategies moneyed spouses sometimes use to attempt to hide business assets, delay revenue recognition or overstate expenses.
August 5, 2019

What can a rebuttal report do for you?

When courts or shareholders question valuation results or the conclusions of opposing experts are widely divergent, a rebuttal report can bring much-needed objectivity. This article discusses various uses of rebuttal reports and situations in which they can be useful. It also explains how to determine the best rebuttal report format for a particular situation.
July 19, 2019

Follow the money: How lifestyle analysis reveals the truth

One of the most effective weapons in a forensic accountant’s arsenal is lifestyle analysis. This article talks about how experts seeking hidden assets and income sources conduct such analysis. It discusses several techniques, including the bank deposits, expenditures and asset methods. A sidebar illustrates how tax returns can be used as an investigative tool.
July 12, 2019
Valuing distressed companies

Valuing distressed companies

Struggling businesses face different financial challenges than healthy ones do. This article discusses how business valuation experts factor these differences into their estimations when valuing troubled companies.
June 17, 2019
business valuation professional standards engagements calculations valuations.

How do business valuations and calculations differ?

Most business valuation professional standards recognize two types of engagements: calculations and valuations. This article explains the critical distinction between these types of assignments — and the reason a full valuation report is necessary in most litigation contexts.
June 2, 2019
Business Value dissenting shareholders case court best evidence fair value target company’s unaffected stock price

Court turns to stock price as best evidence of fair value

In recent years, Delaware’s Supreme Court has shown its preference, under the right circumstances, for market-based indicators of value in statutory appraisal cases. This article summarizes a recent dissenting shareholders case in which the court concluded that the best evidence of fair value was the target company’s unaffected stock price. Conversely, a sidebar highlights another case in which the court relied on an expert’s discounted cash flow analysis in the absence of reliable market-based indicators of value.
April 19, 2019
pricing multiples business valuation experts market approach

Market approach: How to pick a relevant pricing multiple in Business Valuation

Courts tend to prefer the market approach in business valuation, because it’s based on real-world “comparable” transactions. This article identifies different pricing multiples that may be used in the market approach and explains when each one tends to work best. Statistical tools can help business valuation experts evaluate which multiples are most relevant based on market evidence.