Le Beau Footwear: A Business Valuation Case for a Privately Held Firm

Abstract

The case for Le Beau Footwear, which is based on actual events, examines the financial and legal decisions concerning a privately held Canadian retailer whose leased premises and entire inventory were destroyed by a suspicious fire in 1990. The focus of the case is on determining the monetary value of the lost profits that resulted from the insurer's delays in paying the indemnified amount. Within this context, this case provides a rich and comprehensive example of the application of the accounting return on investment (ROI) and the market-based opportunity cost of capital (OCC) techniques for valuation of a privately held firm. Further, the case demonstrates a sharp example of applying the results from previous studies of initial public offering (IPO) and small firm effect to make valuation adjustments that reflect the retailer's private ownership status and its small size. This case is intended for use in advanced accounting and finance courses in M.B.A., M.S. in Accountancy, and M.S. in Finance programs.

Forensic accounting as a profession in Australia? A sociological perspective

“…In regard to the investigative role, forensic accountants may engage in services of fraud investigation, anti-corruption, anti-money laundering, anti-bribery, financial statements fraud, asset tracing, fraud risk assessment, intellectual property theft, employee dishonesty and identity theft (Carpenter et al , 2011; Honigsberg, 2020; Sahdan et al , 2020). Furthermore, a number of services may be encompassed within the scope of forensic accounting such as the technological role of forensic accountants in fighting against financial cybercrimes (Pearson and Singleton, 2008) and the business valuation role of forensic accountants (Jalilvand and Kostolansky, 2016).…”

Divergence and convergence of salient stakeholders' perceptions toward forensic accounting education: importance, obstacles and pedagogies

“…Forensic accounting, described as a problem-solving tool by Prabowo (2021), requires adaption to changes and developments in practice. Investigation of fraud, litigation, valuation of businesses and information technology (IT) forensic accounting are among the topics covered in most forensic accounting courses, as noted by Abdul-Baki (2021), Elder and Yebba (2017), Honigsberg (2020), Jalilvand and Kostolansky (2016), Odia and Akpata (2021) and Rezaee and Wang (2019).…”

A Review on Forensic Accounting Profession and Education: Global Context

“…In literature, rather than focusing on pedagogical approaches, researchers have instead focused on investigating the different forensic accounting teaching tools that can be used. These teaching tools include: case studies (DiGabriele, 2010;DiGabriele & Lohrey, 2016;Jepperson, 2016;Laufer & Betzer, 2010;Mehta & Bhavani, 2017); guest speakers (Laufer & Betzer, 2010); group discussions (Lehmann, 2015); report writing (Brickner et al, 2010;Kern & Weber, 2016); games (Kleinman & Anandarajan, 2011); role-playing (Jalilvand & Kostolansky, 2016) and videos (Gates et al, 2011;Holtzblatt & Tschakert, 2011). These methods of teaching have been proposed by researchers as being the most suitable methods to simulate the investigative (Brooks & Labelle, 2006;Crumbley et al, 2007;Houck et al, 2006;Jenkins et al, 2017;Mena, 2003;Tiwari & Debnath, 2017), adversarial (Blalock, 2012;Brennan, 2005;Durney & Fitzpatrick, 2016;Durtschi & Rufus, 2017;Marychurch, 2006;Rasmussen & Leauanae, 2005) and technological (Alli et al, 2018;Gepp et al, 2018;Pearson & Singleton, 2008;Sledgianowski et al, 2017) nature of forensic accounting work.…”

“…These methods of teaching have been proposed by researchers as being the most suitable methods to simulate the investigative (Brooks & Labelle, 2006;Crumbley et al, 2007;Houck et al, 2006;Jenkins et al, 2017;Mena, 2003;Tiwari & Debnath, 2017), adversarial (Blalock, 2012;Brennan, 2005;Durney & Fitzpatrick, 2016;Durtschi & Rufus, 2017;Marychurch, 2006;Rasmussen & Leauanae, 2005) and technological (Alli et al, 2018;Gepp et al, 2018;Pearson & Singleton, 2008;Sledgianowski et al, 2017) nature of forensic accounting work. Table 2 summarizes the available literature on forensic accounting education (Dee & Durtschi, 2010;DiGabriele & Lohrey, 2016;Elder & Yebba, 2017;Jalilvand & Kostolansky, 2016;Lehmann, 2015).…”