Musicians: Find Your Missing Money
The ARS Counsel network is growing! Our newest strategic alliance with Valuation and Litigation Group, a company specializing in royalty compliance, business valuation, and intellectual property valuation, expands our services and clientele for even more offerings and resources. This collaboration aims to enhance the level of professional assistance we are able to provide songwriters and individuals operating within the music industry. The primary objective of this article is to provide insightful guidance on optimizing revenue and maximizing the value derived from one's musical endeavors.
Musicians: Find Your Missing Money
A publisher or label may present themselves as collaborative partners while offering a non-negotiable contractual agreement accompanied by assurances and financial compensation. However, outcomes can deviate from initial expectations. It is probable that not all entitled royalties will be accurately disbursed. Surprisingly, our team’s audits demonstrate that over 90% of cases involve instances of underreporting and insufficient payment of owed royalties to our esteemed clientele.
Fortunately, a pivotal provision exists within the contract itself. This provision affords you the privilege of engaging a dedicated royalty specialist to meticulously scrutinize the financial records underpinning the computation and distribution of accrued royalties. In today’s intricate landscape of convoluted contracts, overwhelming data volumes, and a constantly expanding array of royalty channels, the inclusion of a royalty specialist within your team assumes paramount significance for any musician aspiring to optimize earnings, safeguard intellectual property rights, and remain attuned to industry shifts. By working with an expert well-versed in the nuances of the trade, you can concentrate on your primary strength – making music.
When to Consult with a Specialist?
Yesterday. In the span of five decades, our Valuation and Litigation Group has accumulated a wealth of experience. Throughout this period, we have played a pivotal role in helping clients to uncover and recover an aggregate sum exceeding one billion dollars in outstanding royalties. Our profound understanding of the industry, coupled with our ability to pinpoint revenue sources and devise strategies to retrieve them, sets us apart. Our expertise extends beyond mere audition; it encompasses a spectrum of domains, including catalog and business valuation, business management, royalty reporting, and litigation support.
Undertaking an audit serves as a strategic means of ensuring that your rightful earnings are fully realized. By demonstrating discrepancies to your label or publisher and substantiating instances of underpayment, you not only secure immediate financial gains but also enhance your negotiation leverage for future contractual agreements. The historical precedent of these contracts skewed in favor of labels and publishers emphasizes the significance of any leverage attained, as it directly contributes to securing the most advantageous terms possible.
Furthermore, an audit assumes a powerful role when contemplating the sale of your catalog. Our team boasts an extensive track record of catalog amounting to billions of dollars. We are committed to providing our clients knowledgeable guidance throughout this intricate process. Common valuation methodologies involve the assessment of recent revenue streams and the estimation of current worth based on anticipated income, or the application of a multiplier to revenue streams, benchmarked against analogous catalog sales in the industry. The magnitude of your revenue stream substantially augments the worth of your catalog, directly correlating to the magnitude of payment upon sale. Notably, audits frequently reveal previously unreported or underreported earnings, thereby bolstering this revenue stream.
In addition to our proficiency in music catalog-related audits and valuations, our expertise extends across a Diverse spectrum of industries. We encompass an expansive array of valuation competencies, including the assessment of businesses and intellectual property assets. Our valuations serve diverse purposes, encompassing potential transactions, tax-related considerations, financial deliberations, internal assessments, and even divorce proceedings. Backed by our comprehensive valuation acumen, we deliver dependable and perceptive evaluations tailored to the unique contours of each situation.
Case Study
Our team readily embraces the prospect of fostering collaborative partnerships that yield mutual benefits. An illustrative instance of such a successful collaboration is exemplified through our longstanding and productive association with Greg Johnson. Mr. Johnson has seamlessly transitioned between the roles of our esteemed client and co-consultant for an extensive duration. With a distinguished career spanning two decades within the entertainment and technology realm, Mr. Johnson embodies a seasoned professional with profound expertise in Music Management, Publishing, Technology Development and Merchandising.
Notably, Mr. Johnson’s management company boasts a roster of accomplished songwriters and producers, responsible for the sale of more than 100 million albums and won numerous Grammy awards across a spectrum of musical genres. His collaboration extends to an array of eminent artists, including The Weeknd, Eminem, Kendrick Lamar, Drake, Nipsey Hussle, and Celine Dion to name a few.
In the domain of publishing, Mr. Johnson’s company stands as a cornerstone for an array of chart-topping pop hits, exemplified by Aloe Blacc’s “The Man.” Furthermore, his imprints has significantly contributed to the sonic landscape of major motion pictures, evident in the end titles and themes of notable films such as “Mission Impossible 4,” “Southpaw,” “Kevin Hart’s Wedding Ringer,” “Teen Titans,” and the Academy Award-winning “Into the Spiderverse.” The scope of his influence extends to the realm of video games, with contributions to iconic titles like Call of Duty and Ghost Recon, alongside participation in international commercial campaigns for renowned brands including BEATS by Dre, Intel, and Gatorade.
Mr. Johnson’s substantial experience and profound insights in the entertainment industry have greatly enriched our pursuits. His influence has played a pivotal role in expanding our client portfolio, facilitating engagements with prominent individuals such as Khalil Abdul Rahman and a substantial music education entity operating within the entertainment domain. Our services encompass comprehensive business consulting and valuations for each of these distinguished clients.
Furthermore, Mr. Johnson actively spearheads initiatives to acquire novel entertainment assets and cultivate fresh client relationships. This proactive involvement continuously generates opportunities that not only amplify our collaborative synergy but also augment our shared success trajectory.
About the Author and His Team
Michael Perlmutter boasts a distinguished career as a seasoned valuation expert, accumulating a substantial 27-year tenure at the Internal Revenue Service (IRS). Mr. Perlmutter’s professional repertoire encompasses his status as a licensed attorney and Certified Public Accountant (CPA). Furthermore, his credibility is underscored by his credentials within the valuation domain, holding designations as a Certified Valuation Analyst (CVA) and an Accredited Business Appraisal Review (ABAR) professional. During his IRS career, he gained invaluable insights into intricate valuation intricacies, particularly those pertaining to the appraisal of businesses and intellectual property. His role often entailed the examination of valuation matters for high-net worth taxpayers, a considerable number of whom were represented by eminent national firms.
Upon retiring from the IRS, Mr. Perlmutter, in conjunction with Wayne Coleman and Darla Crain, founded the Valuation and Litigation Group. This assembly of seasoned valuation experts is renowned for their comprehensive expertise in business and intellectual property valuation, as well as their proficiency in royalty compliance audits, business management, royalty reporting, and litigation support. Collectively, the firm has generated a notable impact within the entertainment industry, particularly within the spheres of music, film, and sports. The clientele they have represented is expansive, including illustrious names like Janet and Michael Jackson, Johnny Cash, Otis Redding, and numerous revered Motown artists. Their work transcends mere valuation to address historical imbalances experienced by musicians and other stakeholders within the entertainment domain, aiming to rectify both their treatment and contractual arrangements.
Notably, this adept team has assumed the role of expert witnesses in a multitude of legal cases. Their engagement extends to confrontations with major labels, where they have championed causes of equity and sought substantive reforms. Their efforts within the legal arena have been instrumental in challenging injustices and catalyzing meaningful transformations within the industry. Most recently, Valuation and Litigation Group has partnered with Armanino, LLP, a top nationwide accounting and consulting firm to extend is range of services and support.