Its Approach to Approving Franchise Loan Applications This article summarizes changes implemented that affect SBA lending in the franchise context and that became effective in 2017. Within the franchise industry, financing backed by the SBA is one of the most important sources of funding for franchisees who wish to establish or grow a franchise. However, since the beginning of 2017, SBA funding within the f ...

Clinical Services (Part I of IV) In the March/April 2017 issue of The Value Examiner, the authors gave a detailed description of how clinical services for physicians can be calculated. QuickRead is pleased to present an overview of this series, which will be presented in four parts. Please look for the more detailed analysis in The Value Examiner. ...

In an age of rapid technological change, the traditional corporate R&D process just won’t cut it.  Bureaucracy and slow decision making are impediments to a company’s ability to innovate and the speed of execution.  As younger companies like Tesla are surpassing incumbents in their industries, the established players need to change to keep up.  Megan Richards, financial analyst with Mercer Capital, expl ...

Google Chrome is the world's most popular web browser.  Are you using its features as effectively as possible?  J. Carlton Collins, CGMA Magazine contributing editor, provides a useful quiz to test your navigation skills in Chrome. To read the full article in CGMA, click: Quiz: How Well Do You Know Google Chrome? ...

Access to banking information ensures advisers can perform holistic planning, fintech firms say.  Yet, Suleman Din looks into the problem that young digital-first firms hoping to revolutionize the way advisers manage client finances and build their wealth claim they have run into resistance from major banks opposed to sharing financial data. To read the full article in FinancialPlanning, click: Who’s Fighti ...

Effective Opening Statements in Mediation What is an effective opening statement? How does one prepare such a statement? In this article, Nancy Neal Yeend, an experienced mediator, shares the steps and processes that lead to an effective opening statement and how that statement can lead to resolution of disputes. ...

The Role of the Forensic Accountant There are a number of instances where damage estimates are uncertain and where a customer is lost. What should one do in these instances? Losses sometimes require reasonable estimates, as well as a reasonable forecasting of the market—both for the generation of revenues and for mitigation. In the case where there is greater perceived loss than a single contract, a forecas ...

The fading use of equity compensation by more mature companies likely reflects: i) relatively cash-rich treasuries; ii) greater interchangeability of personnel to fulfill work functions; and iii) workers’ risk-tolerances (or lack thereof).  Sujan Rajbhandary, vice president and senior member of Mercer Capital’s Financial Reporting Valuation Group, discusses the issue. To read the full article in Mercer Capi ...

The rudimentary definition of forensic accounting is the application of accounting procedures or practices to a matter that may be litigated.  Forensic accounting involves the use of intelligence gathering techniques and accounting/business skills to analyze past financial data.  Brittni Langel, CFE for McGovern & Greene LLP, discusses how litigation teams will determine if there is a need to use this i ...

What is driving the global surge in M&A deals?  In many cases, companies are looking for revenue growth.  But how is the pursuit of revenue synergies working out?  With less than a quarter of acquirers reporting that they are achieving more than 80% of their target, there is clearly room for improvement.  This may not come as a surprise—it is widely understood that revenue synergies are more difficult t ...

Apply the Key Person Discount Is there any evidence that a key person discount exists? In this article, Steven Egna, shares his views on the subject matter and provides an illustration of the statistical basis for supporting such a discount. ...

Moving Forward when Valuing Asset-Intensive Operating Companies In this article, Heidi Walker, the author, revisits the Tax Court and Ninth Circuit’s unpublished decision in Estate of Giustina and the Supplemental Memorandum Opinion issued by the U.S. Tax Court this past year. ...

David Einhorn of Greenlight Capital Inc. is no stranger to controversy.  Over the years, he has had a knack for shining a light on an asset and raising a valuation question.  He will wade into a capital structure issue as was the case in 2013 when he sued Apple Inc. to issue a dividend paying preferred stock.  Jeff K. Davis, managing director of Mercer Capital’s Financial Institutions Group, discusses this ...

Too often, effective collaboration is taken to mean that everyone quickly agrees and is happy with a collective decision, but this idea overlooks the truly creative tension that comes from differing viewpoints.  In this article, Liane Davey, co-founder of 3COze Inc., describes exercises to help overcome your team's fear of constructive conflict. To read the full article in Harvard Business Review, click: If ...

Analyze the Data to Find the Right Technology Companies should not necessarily be early adopters of new technology, but they should be "fast changers" that adapt quickly based on the data available to them.  Rather than shying away from new and innovative solutions, analyze the value they may be able to provide.  John Brandon, contributing editor for Inc.com, shares some insightful tips. To read the full ar ...

Constellation Brands, the third-largest beer seller in the U.S., is modeling several scenarios related to a possible increase in taxes on imported goods. To read the full article in CGMA Magazine, click: How a Major Beer Importer is Planning for U.S. Tax Reform. ...

Risk Management, Compliance are Key Challenges, Auditors Say Forty-one percent of audit committee members point to risk management as the biggest challenge to their organizations this year, according to a recent KPMG survey.  Other major issues include regulatory compliance and "maintaining the control environment in an extended organization," respondents said. To read the full article in CFO, click: Audit ...

The focus of this post is not to comprehensively explain the new revenue recognition standard.  Instead, we examine one public company’s experience with the transition (Workday) and then highlight a few areas that may be of interest to analysts, finance managers, and interested onlookers from a valuation perspective. To read the full article in Mercer Capital's Financial Reporting Blog, click: Revenue Recog ...

7 Keys to Becoming a Visible Expert In this article, Dr. Frederiksen discusses seven keys to becoming a visible expert. ...

How to Silence the Hired Gun While evidentiary rules and ethical codes issued by professional bodies like the NACVA and AICPA prohibit accounting and valuation experts from taking an advocate position, the adversarial nature of the U.S. legal system creates a market which at times demands a “hired gun” expert witness who caters their opinion of damages or business value to that which most convincingly favor ...