-
How to Value: Chemical Wholesaling
Industry Description The chemical wholesaling industry in the U.S. comprises wholesale distributors of industrial chemicals, compressed gases, chemical additives, and synthetic rubber products to manufacturers, construction firms, and mining operations (NAICS 42469). The industry excludes the wholesale distribution of agricultural chemicals, medicinal compounds, paints, varnishes, fireworks, and plastic materials. The following are some basic…
-
Common Pitfalls in Discount Rate Selection
In calculating lost profits and economic damages, selecting an appropriate discount rate is crucial. The discount rate affects how much future value is translated to current value. However, forensic accountants and valuation professionals sometimes fall into common traps that compromise the credibility and accuracy of their analyses. Here’s a deeper exploration of these critical mistakes:…
-
The Basics of Alter Ego Claims
Alter ego claims allow courts to look beyond the protective shell of a business entity and hold its owners individually liable when the business is essentially their alter ego. In such cases, the corporate structure becomes a mere façade, shielding misconduct or financial irresponsibility. Corporations are generally treated as separate legal entities from their owners.…
-
How to Value: Wireless Telecom Carriers
Industry Description The wireless telecommunications carriers industry in the U.S comprises companies that maintain and operate infrastructure that enables wireless communication services (NAICS 51711). The industry provides voice, data, paging, and internet connectivity services. The following are some basic characteristics of the wireless telecommunications carriers industry: Industry Trends The wireless telecommunications carriers industry is…
-
Would Changing the Electoral College Make a Difference? – 2024 Update
In a prior article, we explored how changes to the electoral college would have changed the result of the Presidential election since 2000. Specifically, we explored whether using (i) the Proportional Method, and (ii) the Congressional District Method of splitting electoral college votes would have changed the outcome. It only mattered in two of the…
-
The Basics of Insolvency
In the world of corporate bankruptcy, insolvency is more than a financial status—it’s a legal cornerstone. When businesses face litigation related to fraudulent conveyance or preference actions, the determination of insolvency often makes or breaks a case. For professionals across disciplines—litigation, taxation, forensic accounting, and valuation—mastering this concept is critical. This article explores the key…
-
How to Value: Specialized Storage & Warehousing
Industry Description The specialized storage & warehousing industry in the U.S. comprises operators of storage facilities and warehouses designed for specific commodities or unique storage requirements (NAICS 49319). This industry excludes general merchandise storage, cold storage facilities, and agricultural product warehousing. The following are some basic characteristics of the specialized storage & warehousing industry:…
-
Alternative Explanations in Lost Profits
In commercial litigation involving lost profits, the evidentiary burden to establish damages rests with the plaintiff. While expert witnesses are not required to prove causation—and are generally permitted to assume liability as a given—the credibility and strength of an expert’s opinion is greatly enhanced by a thorough and thoughtful consideration of causation and its alternatives.…
-
Accounting in the Wild: The Accountant
The Accountant, staring Ben Affleck, Anna Kendrick and Jon Bernthal. At its core, its an action film with an autism-as-a-super-power protagonist. Middling reviews from critics, middle to positive reviews from audiences, made back it’s budget at the box office. Ben Affleck’s character is a forensic accountant for the criminal underworld. It is largely window dressing,…
-
How to Value: Data Processing & Hosting Services
Industry Description The data processing & hosting services industry comprises providers that delivers specialized information management services such as transforming client data into reports and offering hosting infrastructure for websites and applications (NAICS 51821). The industry also includes automated data entry and data processing services. The following are some basic characteristics of the data…
