<p><em>Rodriguez v. Hosp. San Cristobal, Inc.<span class="citation-lexis">,&nbsp;2024 U.S. App. LEXIS 1301</span></em>, 91 F.4th 59; 2024 WL 207717</p> <p>Much has been said during the run-up to the implementation of the changes in Rule 702 designed to &ldquo;clarify&rdquo; rather than to change the rule materially. The new version of Rule 702 went into effect on Dec. 1, 2023. Now we have our first look at how the U.S. circuit courts (at least one of them) might look at the changed rule.</p> <p>An article by Faegre Drinker Assoc ..read more

<p>A recent California appeal of a divorce case demonstrated a proper way of managing a situation where the valuation analyst has received insufficient information to allow for a conclusion of value as to an asset or assets. In the <em>Hembree¹</em> case, the trial court engaged the expert, Brian Brinig, CPA, Esq., as a neutral.</p> <p>The parties voluntarily attended a mediation, which led to a settlement agreement and a stipulated judgment. In August 2020, the wife filed a request for order to set aside the judgment. The wife claimed that ..read more

<p>The rule changes to FRE 702, which we have covered previously,¹ went into effect on Dec. 1, 2023. As expected, case opinions are already noting the new rule and how it impacts a particular case. In this post, we recognize two such cases.</p> <p>In <em><a href="https://www.bvresources.com/articles/full-text-of-court-cases/doe-v-trs-of-dartmouth-coll">Doe v. Trs. of Dartmouth Coll</a>.,</em>²&nbsp;in an opinion issued on Oct. 18, 2023, so before the implementation of the revised FRE 702, the defendants ..read more

<p>Judges and valuation professionals seem to be missing the boat on the proper application of the capitalized cash flow (CCF) method under the income approach. The method depends on the present value of the future cash flows of the business being valued. Since the CCF uses just one numerator and one denominator, the single-period cash flows represent the expected future cash flows. This seems to get lost on experts and thus often judges. An example of this is the recent Arizona appellate court divorce case <em><a href="https://www.bvresources.com/articles/full-text-of-court-cas ..read more

<p>The Biden administration has indicated that it is preparing to seize some patents from Big Pharma. An opinion piece in the Dec. 11, 2023, <em>Wall Street Journal</em>^<em>1</em>&nbsp;notes that the Biden administration is rewriting laws to allow it to take control of drug patents, an ambush it calls it, if the patents are not being sold at low enough prices.&nbsp; This &ldquo;power&rdquo; is based on a 1980 law that was not intended for this purpose.</p> <p>This is a dangerous precedent that could, among other t ..read more

<p><em><strong><a href="https://www.bvresources.com/articles/full-text-of-court-cases/taylor-precision-prods-v-larimer-grp-inc">Taylor Precision Prods. v. Larimer Grp., Inc.</a><span class="citation-lexis"></span></strong></em><strong><span class="citation-lexis">,&nbsp;2023 U.S. Dist. LEXIS 184565 </span></strong><strong>(Oct. 13, 2023)&nbsp;</strong></p> <p>In a recent damages case, the U.S. District Court for the Southern District of New York awarded damages<strong> </stron ..read more

<p><em><strong>Hoensheid v. Comm'r (In re Estate of Hoensheid), </strong></em><strong>T</strong><strong>.C. Memo 2023-34; 2023 Tax Ct. Memo LEXIS 33</strong></p> <p>In a recent Tax Court case,¹ the court backed the IRS when it issued a deficiency notice alleging anticipatory income and capital gains and denial of a charitable contribution deduction as it pertains to a contribution of shares of stock of a privately held company that were acquired for cash. One of the three owner brothers and the brother& ..read more

<p>Well here we go again. Another court accepts a calculation of value in a litigation, and this time it has a problematic twist to it! he case is&nbsp;<em><a href="https://www.bvresources.com/articles/full-text-of-court-cases/bm-v-rc">B.M. v. R.C.</a></em>,&nbsp;2023 Alas. LEXIS 102 (Oct. 11, 2023). The Supreme Court of Alaska, the highest court in that state, in a divorce case, affirmed the Superior Court&rsquo;s¹ acceptance of a calculation of value the wife&rsquo;s valuation and forensic accountant submitted and testified ..read more

<p>So what do interest rates have to do with it? With what, you say? As business valuators, we know well that interest rates can impact the value of a business in a number of ways. The first and most obvious is that the required rate of return (ROR) on an investment in a business rises and falls in relation to the interest rates in the economy. As the ROR increases, the present value of cash flows to the business goes down. The interest rate itself is not an indicator of risk in the investment, which is an important factor in determining a business&rsquo;s estimated value. It is more ..read more

<p>We have posted in the past on the status of artificial intelligence (AI). We will likely do so from time to time in the future. Frankly, the activities in AI are moving so fast and so wide that it is difficult to keep up with. The uses for AI are suddenly looking to be endless. Of course, businesses are always looking for an edge, so it is not surprising that they are leading the way in implementation. However, they are no longer alone in this 21st century gold rush. Just about every sector is finding AI extremely useful in accomplishing its mission.</p> <p>No doubt we hav ..read more