Michael B. Lehner, CPA/ABV, CFE, ASA
732-412-3825
MLehner@zbtcpa.com
March 5, 2021
Value Valuation covenant not to compete noncompete

What’s the value of a noncompete? 

Noncompete agreements can be valuable to a business. They help retain key employees, safeguard inside information and prevent unfair competition. This article explains how financial experts value noncompetes and why it’s important in M&A and beyond.
January 5, 2021

Know the differences between fair market value and fair value

The terms “fair value” and “fair market value” are sometimes used interchangeably. To a business valuation professional, however, they have very different meanings. This article explains the IRS definition of fair market value and how it’s used as a starting point for determining fair value in shareholder disputes and divorce cases. A sidebar shows how the meaning of fair value differs in a financial reporting context.
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 16, 2019
buy-sell agreement buy-sell agreement

Avoid costly disputes with a buy-sell agreement

A buy-sell agreement can help avoid disputes over ownership rights, control and the value of a company when an owner leaves the business. Whether the agreement is triggered voluntarily or involuntarily, owners need to protect their financial interests with an agreement that’s legally enforceable and comprehensive. This article points out that it’s important to define buyout terms, avoid ambiguous or outdated valuation formulas and specify the financial data to be used in a buy-sell agreement.
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.