Written in collaboration with Janine Driver, author of You Can’t Lie to Me
In my previous blog post, I noted that when assessing whether someone is lying, you must first consider the person’s baseline – their typical behavior.
A LIAR IS ...
Blog
Written in collaboration with Janine Driver, author of You Can’t Lie to Me
THE MASTER OF DECEPTION
Bernie Madoff infamously stole $65 billion reflecting 4,900 client accounts in a Ponzi scheme. All told, his investors lost approximately $20 ...
As discussed previously, once it has been determined that a separate business interest appreciated in value during a marriage, learned treatises and case law often delineate the active passive analysis into the following elements:
...
As discussed previously, once it has been determined that a separate business interest appreciated in value during a marriage, learned treatises and case law often delineate the active passive analysis into the following elements:
...
The business appraiser performing an active passive appreciation analysis looks to their engaging legal counsel to define and interpret state law in the particular jurisdiction. An active passive analysis is performed when state divorce law ...
Part II of my working capital blog identified methods often used by business appraisers when forecasting working capital. In this installment, I will present some additional thoughts regarding this topic. Depending on the facts and circumstances, it is typically appropriate to consider the company’s historical working capital ratios and industry working capital metrics at the composite level (e.g. total working capital), as well as each separate component of working capital (e.g. accounts receivable, inventory, accounts payable, etc.).
Part I of my working capital related blog addressed the impact on free cash flow of changes in current assets and changes in current liabilities, which are the two components that comprise working capital (calculated as current assets minus current liabilities). The combined impact of changes in current assets and changes in current liabilities equals the impact of changes in working capital on free cash flow. Part II of this blog identifies methods often used by business appraisers when forecasting working capital.
In a business valuation income approach, the income stream being capitalized (in a capitalized income method) or discounted (in a discounted income method) is often the free cash flow generated by the entity being valued. Free cash flow is ...
A picture says a thousand words – and nothing tells a story better than electronic data. FSS has successfully used advanced data analytics for years to ferret out the truth and bring a story to life through data visualization, from supporting ...
When valuing a private operating company, an appraiser is likely to use an income approach, either as the main valuation method or in conjunction with another method. Whether the appraiser capitalizes cash flows in a capitalized cash flow (“CCF”) model or uses forecasts of future cash flows in a discounted cash flow (“DCF”) model, they have incorporated both explicit and implicit assumptions into the cash flows used in their model.
25 years ago, a dream came true – Forensic Strategic Solutions (FSS) came to life! In October of 1992, FSS was created as the product of a plan to specialize in investigative financial services. We narrowed our scope to the specific field of fraud investigation, while also serving as expert witnesses on complicated financial matters. Many people thought such a niche practice would not be successful, but today, the industry continues to flourish. In fact, back in 1992, few people – especially in the general public – had even heard of forensic accounting. Most folks thought forensic accounting was providing accounting services to dead people!
Our team recently wrapped up another sizeable fraud examination for a small business whose trusted bookkeeper embezzled hundreds of thousands of dollars. While the names and the faces of fraud change, the story remains the same: the employee ...