Forensic Perspectives Mark S. Gottlieb

In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives a quick recap of what we’ve learned in this miniseries, the types of scenarios in which this knowledge can be utilized and where you can find more valuable resources as a practicing attorney. 

Episode Highlights:

Mark gives a recap of the categories that have been covered in this mini series. (0:20)


As a firm that specializes in business valuation, what types of scenarios will you be retained in? (0:53)


 Where can you learn more about Mark’s firm and available services? (1:12)


 Mark outlines several resources found on his website that practicing attorneys can use. (1:30)


 Mark thanks the listeners and gives a closing statement. (1:42)



Key Quotes:

“As a firm that specializes in business valuation and forensic accounting, we are often retained in various instances. Some examples are divorce, shareholder disputes, insurance, manners, succession planning, gift an estate tax purposes.” - Mark Gottlieb

“In addition to the seven days of seminars, our website also provides several resources that you as practicing attorneys can use. Pay close attention to the podcast, blogs, white papers, our expert page, as well as our resource page that provides checklists and questionnaires.” - Mark Gottlieb


Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

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In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb lays out the important factors to remember when determining your valuation method. Follow along as Mark walks us through mock scenarios to explain how to properly weigh various approaches. 

Episode Highlights:

 Mark recaps different methods discussed in the miniseries when it comes to valuing a business. (0:20)


 How do you ultimately determine which methods should be used? (0:35)


Mark explains how to weigh each approach when more than one method is applied. (0:50)


Mark shows a mock scenario example of how to weigh value equally. (1:15)


How does the valuation of a business change when you weigh one approach more than the other, instead of equally? (1:50)



Key Quotes:

“We have examined the three different methods of our approaches to valuing a business: there was the asset, the market and the income approach. When you’re all said and done, the expert has to determine what methods are going to be used.” - Mark Gottlieb

 “In some instances, only one method. But when two or more methods are being used, the appraiser has to determine what weight each method is going to be applied.” - Mark Gottlieb

“When reconciling the valuation conclusions, you have to pay close attention to the weight of each of the methods that have been employed.” - Mark Gottlieb


Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

Reach out to Mark S. Gottlieb

In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives us an overview of how valuation discounts are used in business valuation, and a detailed look at two primary types: DLOC and DLOM. 

Episode Highlights:

 What are the two primary types of valuation discounts? (0:20)


 What four components is DLOC dependent upon? (0:30)


 Mark discusses investor’s control expectations and control prerogatives. (0:55)


 How do we quantify DLOC? (1:10)


 What is a discount for lack of marketability? (1:25)


 Mark breaks down how a sample valuation would be computed. (2:55)



Key Quotes:

“Control generally has certain prerogatives with it. Some of these are the rights to appoint management, to pay dividends, to direct business strategy, to set compensation and to divest assets.” - Mark Gottlieb

“Marketability is defined as the ability to convert the investment or the business into cash. And generally, that conversion happens in three days or less.” - Mark Gottlieb

 “Often when we're evaluating a controlling interest, we either will not take a discount for marketability, or take a rather modest discount when compared to what would have been used if a minority interest would have been calculated.” - Mark Gottlieb


Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

Reach out to Mark S. Gottlieb

In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives insight into one of the most important parts of your business valuation: financial statements. Which issues should you pay close attention to and what are some real life examples you should be aware of? Listen to find out! 

Episode Highlights:

 Mark explains one of the most important parts of your business valuation approach. (0:25)


 What are appraisers trying to determine when they review five years worth of financial statements? (0:33)


 What issues do you have to consider when fine tuning your financial statements? (0:50)


 Mark gives an overview of five types of adjustments. (1:00)


 Mark gives a few examples of circumstances that could alter unusual & nonrecurring adjustments. (1:15)


Mark lists non-operating assets that are commonly used. (1:35)


What is a specific example of a non-operating asset? (1:50)


Mark gives an overview of types of related party transactions. (2:15) 


Which types of accounting norms should be considered? (2:40)


Key Quotes:

“Valuation by itself is a difficult exercise. And, one of the most important parts of the approach is to normalize the financial statements that you're provided.” - Mark Gottlieb

 “We also have to consider non-operating assets. These non-operating assets commonly include items such as real property, investments, or other types of excess assets.” - Mark Gottlieb

“An example of an non-operating asset may be excess inventory, or it may be a piece of real estate, or a plane or some other type of asset that is on the books of the business, but has no functioning or operating value to the business.”


Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

Reach out to Mark S. Gottlieb

In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives a detailed look at three general business valuation methods and how they’re used. 

Episode Highlights:

 Mark gives a general overview of 3 evaluation methods. (0:20)


 When is the asset approach normally utilized? (0:35)


 Mark mentions a key component you must remember when dealing with a market approach. (1:05)


 What is the most common approach used in business evaluation? (1:40)


 Which factors should you pay close attention to when using a market approach? (1:55)



Key Quotes:

“The asset approach is defined as a difference between the normalized assets less than normal normalized liabilities. The asset approach is commonly use for real estate or holding companies.” - Mark Gottlieb

“Even though you find similar industry participants, you still have to look to see if the financial attributes of the subject company have some symmetry with those companies that are bought and sold, that are in your database of the transactions you're examining.” - Mark Gottlieb

 “When we look at the income approach, there are certain things that we have to pay close attention to. The normalized income stream, the expected growth, the risk, industry wide factors, and company specific factors.” - Mark Gottlieb


Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

Reach out to Mark S. Gottlieb

In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb gives a detailed look at several different premises of value that you’re likely to see, as an attorney. 

Episode Highlights:

 Mark gives an overview of the different categories of premise of value. (0:25)


 What’s the most common type of premise of value you’ll see as an attorney? (0:40)


 Mark lists attributes you must consider when dealing with ‘going concern’. (0:45)


 What’s the difference between an orderly liquidation and a forced liquidation? (1:15)


 When is in-use/in-exchange used? (2:00)


 What four things must you consider when selecting the proper premise of value? (2:10)




Key Quotes:

“The different premises of value that you'll probably see as an attorney are going concern, value in use, highest & best use, in-use/in exchange, and liquidation.” - Mark S. Gottlieb

“In an orderly liquidation, the assets are sold within a reasonable time to maximize value. In a forced liquidation, the assets are sold quickly, almost like an auction style.” - Mark S. Gottlieb

“The value in use is what is commonly seen in real estate appraisals. The highest & best use is commonly used when we have the use of an asset by the market participants that maximizes their value.” - Mark S. Gottlieb



Resources Mentioned:

Mark S. Gottlieb, CPA, PC (MSG) 

Reach out to Mark S. Gottlieb