Hello
Welcome to the latest issue of Valuation and Litigation Insights!
Our goal is to get you information that helps you navigate the complex world of valuation and empowers you to make decisions that yield better results. I slog through the Internet so you don't have to.
This issue, I want to start a little differently.
"Scenius" has been on my mind a lot recently. What is "scenius," you may ask? If individual intelligence and inspiration comes from a solitary "genius," then collective intelligence comes from "scenius" -- a fertile ecosystem where ideas flourish through the interactions of many.
You see, "scenius," the idea that innovation and growth comes from collective creativity, is a much more inclusive, healthy way to view the world than the lone genius mentality where progress is driven by a few exceptional people and the rest of us dummies are simply there for the ride.
Finding your "scenius" can spark innovation, make life less stressful, and elevate your career. Let's break down silos, collaborate, and embrace collective creativity.
On to this issue.
Valuation and Litigation Insights
News and Trends
Set the Scenius!
"Scenius," a word coined by Brian Eno back in 1996, is a portmanteaux of the words "genius" and "scene."
Eno once remarked: "...the important changes in cultural history were actually the product of very large numbers of people and circumstances conspiring to make something new. I call this ‘scenius’ - it means ‘the intelligence and intuition of a whole cultural scene’. It is the communal form of the concept of genius."
Why is this important? Because most of the good work we do in valuation and business (not just culture) is the result of collective, not individual, ideas. As good things come out of a fertile ecosystem of collaboration, we should find and take full advantage of our own sceniuses.
Why do I bring this up now? If you are reading this, your scenius likely embraces valuation. That means, if you have a question regarding valuation or something valuation-adjacent, give me a call!!
linkedin.com
The AI Revolution is Coming for Business Valuation and Forensic Accounting
The AI Revolution and Business Valuation
Yes, another post about AI! To say Artificial Intelligence (AI) is revolutionizing the way we work and do things is an understatement, and becoming a bit cliche. The more interesting discussion is how AI can specifically advance your industry.
The article below touches on how AI is transforming the world of business valuation and forensic accounting. Interesting to read that the written output was the result of a team effort of human and AI.
What I find most interesting is how prompt engineering -- the process of composing detailed instructions to help the AI generate desired outputs -- might be where the new islands are forming in our world. Developing that skill, and of course the quality control processes that correct and refine the results to remove errors, biases, and other problems, are fundamental to harnessing AI to its fullest current potential.
How are you using AI in your practice or business?
quickreadbuzz.com
Things to Know
UK Judge Predicts Artificial Intelligence Will Transform Role of Expert Witnesses
How is artificial intelligence (AI) changing the role of valuation experts? In the article below, senior UK judge Sir Keith Lindblom assured expert witnesses that they will not be replaced by AI anytime soon. However, their roles will be transformed.
A few takeaways from the judge's comments:
Although witnesses will not be replaced, they must adapt to oversee and ensure the quality of AI-produced evidence.
(Human) expert witnesses remain indispensable due to their accountability, intelligent rigor, and ability to understand and apply new technologies.
Experts must use AI with caution, particularly concerning confidential information. Closed AI systems may offer enhanced security to mitigate risks.
In a world where nearly limitless information (and now, through AI, analysis) is available, the value provided by us humans will largely be in curation, quality control, and providing meaningful interpretation and actionable advice relating to the generated results.
Pretty much the things a good valuation advisor already provides.
canadianlawyermag.com
Don’t Sleep on the Estate and Gift Tax Sunset
Don't Sleep on the Estate and Gift Tax Sunset!
The U.S. federal estate and gift tax exemption, which is currently $13,610,000 per person, is set to decrease on January 1, 2026 to $5,000,000, indexed for inflation.
January 1, 2026 seems pretty far away.
However, it takes time to get assets and business interests properly appraised. And such appraisals might suggest a change in gift or transaction structures that simply cannot be properly done, or will not be accepted by the taxing authorities, if executed at the very last minute.
Given the above, demand for valuation specialists also will likely skyrocket in 2025. So waiting until the last quarter of 2025 to deal with the sunset is likely not a great idea.
(Sure, Congress might swoop in so that the January 2026 sunset is averted. But that will require an active change to the legislation. Given the current partisan nature of government, making that kind of an assumption might be very risky indeed.)
It is tempting to snooze. But if you or your family are likely to be impacted by the sunset, now would be a good time to talk with your wealth and tax advisors and to assemble a team to address these issues.
farrellfritz.com
BVIUK Presents: Report From The 3rd Virtual Expert Summit
On May 23rd, 2024, the Business Valuation Institute of the United Kingdom (BVIUK) held its 3rd Virtual Expert Summit via Zoom.
In attendance were a number of professionals and academics from around the globe. The two-hour session provided an opportunity to discuss vital topics related to business valuation.
Experts shared insights relating to the varied valuation landscape among many countries, efforts to align valuation standards and practices globally, initiatives in training and accreditation, and opportunities for the academic and professional communities to further advance the profession.
I was and am grateful for the opportunity to participate in this conversation.
bviuk.com
In Closing
That's it for now. If you found this issue of Valuation and Litigation Insights useful, please forward it to a friend or colleague.
And if you have a valuation or damages-related issue you would like to discuss, let me know! Our team at at Grobstein Teeple, LLP are here to help.
You can reach me one of the ways below.
Talk to you soon!
Will
William W. Thomsen
Director of Valuation and Litigation Services
Grobstein Teeple, LLP
www.gtllp.com
Call me at 818-502-4950
Valuation and Litigation Insights