How do you know whether a professional practice (e.g., medical practice, dental practice, law firm or accounting firm) might have value that can be divided in a a divorce? Here are three signs that a professional practice might have value.
The Seventh Circuit held that the salary earned by a CEO of a privately-held business (including a $17 million year-end bonus) was neither excessive nor a disguised dividend.
The NYT defined goodwill as “the amount they overpaid for a business compared with the sum of its parts.”
When you’re using excess earnings, perhaps your cap rate has to be larger, and sometimes significantly higher, in valuing the intangible assets.