Valuations for Gift & Estate Tax Planning

In this article, we describe the processes that lead to credible and timely valuation reports. These processes contribute to smoother engagements and better outcomes for clients.

2021 Transportation Industry Update

COVID-19 has had a lasting impression on many industries throughout the world, but the U.S. trucking and transportation industry was among the first industries to feel the impact of the pandemic.

Labor Shortage in Trucking Industry Leading to a Rise in Consumer Pricing

When the COVID-19 pandemic hit the United States in 2020, the demand for truck drivers increased sharply as many consumers turned towards online shopping. Even though trucking services were in high demand, the trucking industry struggled to grow its workforce during this time period. This coupled with other factors has had a serious impact on the economy.

Personal Goodwill: An Illustrative Example of an Auto Dealership

Personal goodwill was an issue in several of our recent litigated divorce engagements. It is more prevalent in certain industries than others and varies from matter to matter. However, although there are several accepted methodologies to determine personal goodwill, there is not a textbook that discusses where it exists and where it doesn’t. Before any attempts to measure and quantify it, an important question to ask is “Does it exist?” Often with ambiguous concepts like personal goodwill, the adage “you know it when you see it” is most appropriate. In this article, we examine personal and enterprise goodwill using a specific fact pattern unique to the auto dealership industry. Beyond this illustrative example, the analyses can be applied in other industries, but must be considered carefully for the unique facts and circumstances of each matter.

Trucking Industry Explosions and Implosions

The trucking industry has recently been shaken by a series of large accident-related litigation verdicts, also known as nuclear verdicts.  The definition of what constitutes a nuclear verdict can vary; however, the most common definition is verdicts in excess of $10 million.  No matter how they are defined, nuclear verdicts are causing upheaval in the trucking industry. 

Always Cash Flow and Earning Power

We recognize what matters today for many funds is helping portfolio companies survive a sharp drop in revenues rather than discerning how much first quarter marks may fall from the last valuation.

December 2019 SAAR

SAAR1 came in at 16.70 million for December 2019, as a shortened holiday season led to volume declines of 5.8%. However, total volume was 17,047,725 for 2019, the fifth straight year above 17 million. While volumes did decline, the drop … Continued

January 2020 SAAR

SAAR came in at 16.844 million for January 2020, up about 1% from both the prior month and the prior year. Actual sales of 1.13 million units was slightly down from January 2019. Similarly, while SAAR was up from last … Continued

Do Win/Loss Records Affect Major League Baseball Revenues and Attendance?

Many people believe that the win/loss ratio doesn’t have much effect on revenues and attendance.  They believe the local team has loyal fans who will attend games despite their performance.   We investigate that assumption in this article focusing on Major League Baseball (MLB) by sampling a top tier, middle tier, and lowest tier team.

In Game Leaders Esports Summit Insights

The In Game Leaders (IGL) Winter Summit took place January 3, 2020 at the esports Stadium Arlington. IGL originated as a capstone project for summer interns at esports Stadium Arlington. The primary purpose of the Summit was to “[provide] the opportunity to learn from industry professionals and collegiate leaders as they speak about the various career paths in esports. IGL strives to teach parents and students how to develop a sustainable career in the rapidly-growing esports field.” This second event consisted of several panels that addressed collegiate esports, professional esports, as well as marketing and event management. We recap a few key panels below.

Valuation Issues in Auto Dealer Litigation

In our family law and commercial litigation practice, we often serve as expert witnesses in auto dealership valuation disputes. We hope you never find yourself a party to a legal dispute; however, we offer the following words of wisdom based upon our experience working in these valuation-related disputes. The following topics, posed as questions, have been points of contention or common issues that have arisen in recent disputes. We present them here so that if you are ever party to a dispute, you will be a more informed user of valuation and expert witness services.   

Five Trends to Watch in the Medical Device Industry

The medical device manufacturing industry produces equipment designed to diagnose and treat patients within global healthcare systems.  Medical devices range from simple tongue depressors and bandages, to complex programmable pacemakers and sophisticated imaging systems.  Major product categories include surgical implants and instruments, medical supplies, electro-medical equipment, in-vitro diagnostic equipment and reagents, irradiation apparatuses, and dental goods. This article outlines five structural factors and trends that influence demand and supply of medical devices and related procedures.

Key Valuation Considerations for FinTech Purchase Price Allocations

FinTech M&A continues to be top of mind for the sector as larger players seek to grow and expand while founders and early investors look to monetize their investments. In this article, we discuss one of the most significant assets to be considered in FinTech acquisitions, customer relationships, and how to value these assets.

The Rise of FreightTech

Over the past few years, FreightTech has emerged as its own category of technology. The level of excitement in the space grew in 2018 as global venture capital investment increased to $2.9 billion from $1.3 billion the prior year. FreightTech is on track for another year of exponential growth in 2019.

NADC 2019 Spring Conference Recap

Scott Womack recently attended the 2019 Spring Conference of the National Auto Dealers Counsel (NADC) in Dana Point, California. This article provides a couple of key takeaways from the day and a half sessions on the current conditions in the industry.

Labor Shortage in Trucking Sector

The trucking industry is wedged between a rock and a hard place when it comes to driver recruitment. Trucking companies are simultaneously exploring self-driving technology, while still convincing new entrants to the labor market that commercial driving is a career choice that will pay off. The driver shortage has also sparked major shifts in the way hiring and training are conducted in the industry. While this shortage will hurt shippers until autonomous technology is fully developed, the long-term problem may actually lie in another labor pool: service technicians.

How to Value an InsurTech Company

InsurTech, a FinTech niche, continues to threaten the traditional state of the insurance industry. In this article, we provide an overview of the niche and the market conditions in which these companies operate, as well as company-specific considertions to understand when valuing these companies.

Adjusted Earnings and Earning Power as the Base of the Valuation Pyramid

The extensive use of core versus reported earnings by public companies has been a widespread phenomenon for at least 25 years. During the past decade, the practice also has become widespread among companies (and their bankers who market deals) that are issuing debt in the leverage loan and high yield markets.

If investors are solely relying upon company defined adjusted EBITDA, then they may be vacating their fiduciary duties when investing capital. That said, an analysis of core versus reported earnings is a critical element of any valuation or credit assessment of a non-early stage company with an established financial history.

Value Drivers of a Store Valuation

Auto dealers, like most business owners, are constantly wondering about the value of their business. It’s easy to see how this issue moves to the forefront around certain events such as a transaction, buy-sell agreement, litigation, divorce, wealth-transfer event, etc. There are many other instances when a dealer can evaluate the condition, progress, or value of their store. Dealers can actually influence the value of their store prior to these obvious events by understanding the value drivers of a store valuation and addressing them on a consistent basis. So what are some of the value drivers of a store valuation?