Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Valuing the Closely Held Business
The assessment of replacement compensation generally includes a review of industry statistics and other pertinent factors, including the experience and judgment of the valuation expert. Before a level of replacement compensation can be determined, the valuator must consider numerous factors including, but not limited to, the types of duties that the owner performs in his/her position with the business, the owner's education and level of experience, and the number of hours the owner works in comparison to non-owner employees who perform similar duties and have a comparable educational and experience background as the owner. In addition, the size of the company, the complexity of its organizational structure and the geographical region of the country may impact the decision-making process relative to the level of replacement compensation to utilize.
In order for replacement compensation to have a true economic basis, it must be reasonable for the circumstances at hand. One of the most developed areas of the law involving replacement compensation issues evolved from tax court decisions that were argued for purposes of assessing the ordinary and necessary nature of the expense for executives and/or related parties. In addition, the tax courts have ruled, and have provided guidance, within the context of valuation for estate and gift tax purposes. As a result of the numerous tax court decisions that have been handed down on this subject area, it can be helpful to look to those court decisions for guidance in matrimonial cases.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
'Insurable Interest' and the Scope of First-Party Coverage
This article reviews the fundamental underpinnings of the concept of insurable interest, and certain recent cases that have grappled with the scope of insurable interest and have articulated a more meaningful application of the concept to claims under first-party property policies.