Valuation and Forensic Accounting: Demystifying Trends, Critical Issues, and Best Practices
Recording Available: Thursday, October 22, 2020
Rapid technological advancements and globalization continue to transpire in businesses as years pass. However, financial crimes such as fraud and embezzlement have also increased along with these advancements, stressing the importance of taking necessary precautions to avoid risks of costly and burdensome litigation. Furthermore, counsel to businesses must be keen when adopting strategic forensic accounting techniques in quantifying and valuating damage claims.
Join a panel of key thought leaders and practitioners assembled by The Knowledge Group as they delve into an in-depth discussion of the significant developments in forensic accounting, valuation, and litigation. Speakers will also offer practical tips and strategies in this evolving legal climate.
This LIVE webcast will discuss the following key provisions:
- Valuation, Forensic Accounting, and Litigation: Trends and Developments
- Valuation & Forensic Accounting Techniques
- Recent and Notable Case Decisions
- Common Risks and Pitfalls
- Best Compliance Practices
Benjamin A. Sacks, Principal
The Brattle Group
- Private benefits of control (PBCs)
- Benefits that accrue to a controlling shareholder that do not accrue to non-controlling shareholders
- Tunneling PBCs: Generally, monetary benefits divert from non-controlling shareholders to the controlling shareholder. If detected, tunneling would often form the basis for a lawsuit in many countries. A classic example is a related party transactions conducted at non-market prices. Often the deviation from market prices is hard to detect.
- Psychic PBS: Generally non-monetary and they generally do not make non-controlling shareholders worse off. A classic example, if you are a baseball fan, is owning the Yankees. The owner enjoys meeting the players and talking baseball strategy.
- PBCs are often at play in change-of-control litigation and particularly severe at dual-class firms
- Control premiums & the value of control
- What create a control premium / what is the value of control
- Synergy / efficiency
- Better management
- Relation to merger premium
- Transactions can create generate the latter two. Typically, the merger premium represents a split of the value expected to be created.
- Premiums to high-vote shares in M&A
- Who has the control premium?
- Outside a transaction: except or PBCs, either there is none, or, depending on your definition, it is split pro-rata amongst all shareholders and reflected in the share price in an efficient market.
- In a transaction: they are shared pro-rata amongst the shareholders
- If in a transaction as per the terms of the deal
- What create a control premium / what is the value of control
- Size premium
- Appeared genuine for a brief time
- Substantial evidence against them now
Catherine J. Connolly, CPA, CFF, CFE, Director of Forensic Accounting
One River CPAs
- Trends in the investigatory world of forensic accounting:
- Uptick in discovery of misappropriation and other fraudulent enrichment;
- Still seeing the “classics” of financial reporting issues to provide results that appear to be better than reality;
- Disclosure and internal control issues.
- Notable cases – some newsworthy, some analogous experiences from current practice.
- Wirecard – fraud/theft and cover-up
- Lamborghini Guy (PPP funds)
- Super Micro (SEC settlement late August)
- Tips/avoiding pitfalls
- Danger of diving into a set of accounting records maintained by those involved in an issue.
- Rely upon what, and whom?
- Triangulate to patterns, and the crux of an issue.
- Data analytics, keeping scope reasonable.
- Remediation efforts, focus on ICFR and risk assessments.
Who Should Attend:
- Forensic Accountants and Auditors
- Certified Public Accountants
- Certified Fraud Examiners
- Chartered Financial Analysts
- Litigation Officers
- Litigation Lawyers
Mr. Benjamin A. Sacks is a Principal in the Washington, DC office of The Brattle Group. Mr. Sacks has twenty years of experience assisting corporations, investors, U.S. government agencies and foreign governments, to develop and present economic and financial testimony in complex litigations and arbitrations. Mr. Sacks has provided expert reports and testimony in numerous matters before Courts and arbitral Tribunals in the both the United States and internationally. He has a particular focus on Controlling Shareholder matters as often litigated in Delaware, and in valuation in international arbitrations. Mr. Sacks teaches a Continuing Legal Education course on damages, has taught classes to attorneys on valuation, and served as a panelist on damages at the recent Conference on International Arbitration and Mediation at Fordham in New York City. Mr. Sacks received his B.A. in mathematical economics from Columbia University and his M.A. in economics from the University of Chicago.
Mr. Benjamin A. Sacks is a Principal in the Washington, DC office of The Brattle Group. Mr. Sacks has twenty …
Cathy Connolly has more than 25 years of forensic accounting, complex business litigation and audit experience. Prior to joining One River CPAs in 2020, Cathy was a Partner at StoneTurn, leading the forensic accounting practice for the West Coast.
Cathy has worked on a variety of accounting-related forensic and litigation matters, including investigations of asset misappropriation and other financial fraud; improper financial reporting and financial statement restatements; internal controls remediation; merger and acquisition litigation disputes; contract and business interruption damages and other analyses for complex financial litigation matters; and various special audits and investigations.
Cathy Connolly has more than 25 years of forensic accounting, complex business litigation and audit experience. Prior to joining One …
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Method of Presentation:
Live Webcast; Group-Internet Based
General knowledge in forensic accounting
NASBA Field of Study:
Accounting - Technical
NY Category of CLE Credit:
Areas of Professional Practice
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About The Brattle Group
The Brattle Group is a consulting firm that specializes in economic and financial analysis, with substantial experience analyzing damages in a wide variety of industries. The Brattle Group answers complex economic, regulatory, and financial questions for corporations, law firms, and governments around the world. The firm consists of over fifty principals and a supporting staff of over 200 professionals. The Brattle Group also works on an exclusive basis with leading academics at Harvard University, MIT, and the London Business School. We have offices in Brussels, London, Madrid, Rome, Boston, Chicago, New York, San Francisco, Toronto, Washington DC, and Sydney.
About One River CPAs
With 30 years in business, One River CPAs offers income tax preparation and consulting, audit and attest services for nonprofit organizations, forensic accounting, small business consulting and bookkeeping services including on-site Quickbooks training. The firm serves clients in Maine and other regions from locations in both central and midcoast Maine. The firm’s qualified professionals provide exceptional service and strive to differentiate the firm through that service, and as a result have earned recognition from various business organizations, as well as community service awards.