Arxis Financial Litigation Consulting Update e-newsletter

December 2010

Feature Article:

"The Role of a Forensic Accountant in Combating Unfair Business Practices"

Unfair business and trade practices involve a wide range of matters, including business conspiracy, breach of fiduciary duty and misappropriation of trade secrets. Whether from a plaintiff or defense perspective, proving or disproving unfair business practices may hinge greatly upon the documentation trail that is left by the alleged perpetrator. Forensic accountants are uniquely qualified to uncover this trail because of their knowledge and experience in financial document analysis, accounting principles and auditing techniques. (click here for complete article)

"Insights on Valuation" -- 4th Quarter, 2010 Issue

We are pleased to include our quarterly newsletter "Insights on Valuation." In this issue, we discuss:

"Is the Stock Market Really Relevant to My Little Company?": An important question to ask is "Who is the likely buyer for the company being valued?" Many small companies change hands through business brokers and other intermediaries, for which public market data is not relevant. But for others the most likely buyers might be larger companies, some of which are publicly traded. Then, public value multiples become highly relevant ...

"Valuing Intellectual Property": Intellectual property is difficult to describe and value because it has no tangible qualities. But, often, the intangible assets of a business are easily the most valuable assets. Thus, when intellectual property is stolen, damaged, destroyed, or impaired, the owner may seek redress because of the significance of the financial loss. When valuing intellectual property, it is important to keep in mind that the conclusion of value will be based in one form or another on the cash flow that the property could reasonably be expected to produce in the future.

"Valuing Start-up Companies": What makes the start-up valuation both different and difficult is the lack of historical operating data to serve as prologue to future operations. For example, the capitalization of cash flow method cannot be used to value a start-up company because there is no historical cash flow.

Practice Profile

Forensic Accounting Services for Unfair Business Practices

Unfair business and trade practices involve a wide range of matters, such as business conspiracy, breach of fiduciary duty, misappropriation of trade secrets and other proprietary information, fraud, tortious interference with contracts, misrepresentation, and other oppressive or unconscionable acts or practices. Through an examination of financial records, a forensic accountant plays a vital role in uncovering facts that can support of repudiate an unfair business practice claim. Forensic accountants are uniquely qualified for this role because of their knowledge and experience in financial document analysis, accounting principles and auditing techniques.

Arxis Financial offers litigators exceptional forensic accounting support. With thousands of clients served over the decades, we have developed a depth of expertise in working with businesses of all sizes from many industries. This experience carries over significantly to our “Forensic Accounting” practice. Our services include reconstruction of accounting records, analysis of business transactions, document review and tracing, and expert witness testimony.

Arxis Financial's professionals apply detailed investigation and analysis that is necessary to uncover essential facts and provide meaningful insights. We assist attorneys in interpreting the data, and help counsel to understand and analyze events or issues. Expert analysis and conclusions are presented in depositions and trial at local, state and federal court levels as well as mediation and arbitration. This level of support can be a key asset in determining a legal strategy as well as reaching a reasonable and efficient conclusion.

Partner Profile:
The Forensic Accounting practice is headed by partner Chris L. Hamilton, CPA, CFE, CVA, DABFA. Mr. Hamilton is a Certified Public Accountant, Certified Fraud Examiner, Certified Valuation Analyst, and a Diplomate with the American Board of Forensic Accounting. He is a licensed life and disability insurance agent and a General Securities Representative. Mr. Hamilton has published articles in several publications, and has made presentations at national conferences, training institutes and seminars on topics including forensic accounting, fraud and business appraisal.

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Litigation Consulting

Update

Forensic Accounting - Fraud - Business Valuation