In Financial Projections (Part II of II) This is a two-part article that considers the review and assessment of prospective financial information. Specifically, this discussion describes the behavioral bias that may influence financial projections. This discussion should inform any party involved in compiling or assessing financial projections. This discussion is particularly relevant for fiduciaries who may be involved in the transaction or other investment decision-making process. In Part I of this article, the authors discussed key questions fiduciaries should ask to understand financial projections and eliminate or reduce bias. In this second-part, the authors discuss company-specific considerations—a qualitative approach and…
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Lessons on Ill-Conceived Strategies that Companies Should Avoid Doing in Business and in Litigation Being aggressive in business and in litigation is considered an advantage. But, as illustrated in a recent 7th Circuit case, it is possible to be overly aggressive. When this is coupled with some serious mistakes in business and in litigation, it can be disastrous. The cases, 4SEMO.COM Incorporated v. Southern Illinois Storm Shelters, Inc., Ingoldsby Excavating, Inc. and Bob Ingoldsby, 7th Circuit Court of Appeals, Nos. 18-1998 and 18-2095, October 7, 2019) offer experts, lawyers, and business owners lessons on how an unchecked ego and an…
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Getting rid of meetings is the false solution, since they are forums for organizational democracy, knowledge sharing, decision-making, and communication. Thus, recent business books and scientific studies have focused on improving meetings and increasing meeting ROI through evidence-based practices. To read the full article in Financial Management, click: Improve Your Meetings: The Attendee List.
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The law known as the Tax Cuts and Jobs Act of 2017 (TCJA) made many significant changes to the international tax regime. One important change is Sec. 250, which was enacted by Section 14202(a) of the TCJA, and generally provides a domestic C corporation (1) a deduction for its foreign-derived intangible income (FDII) for the tax year, and (2) a deduction for its Sec. 951A global intangible low-taxed income (GILTI) inclusion for the tax year. To read the full article in The Tax Advisor, click: Foreign-Derived Intangible Income Guidance Addresses Many Open Questions.
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Just as cluttered stacks of paper can become overwhelming in the workplace, so can an overflowing e-mail inbox or a computer desktop littered with electronic files. “From a productivity standpoint, a cluttered desktop and files equals a cluttered mind.” To read the full article in Journal of Accountancy, click: Six Tips for Decluttering Your Digital Workspace.
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The Tax Cuts and Jobs Act of 2017 H.R.1 There was a flurry of activity within the valuation community following passage of the Tax Cuts and Jobs Act of 2017 (TCJA) and several complicated tax calculation models were unveiled. While we acknowledge the TCJA is beginning to show a noticeable impact on the level of our value conclusions, how much of an impact ought it really have on the way we perform our work? In this article, the author reviews salient features of the TCJA and concludes with some thoughts and suggestions for retaining common sense and applying simplicity to…
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In Financial Projections (Part I of II) This is a two-part article that considers the review and assessment of prospective financial information. Specifically, this discussion describes the behavioral bias that may influence financial projections. This discussion should inform any party involved in compiling or assessing financial projections. This discussion is particularly relevant for fiduciaries who may be involved in the transaction or other investment decision-making process. Introduction This discussion considers the review and assessment of financial projections that are prepared as part of a corporate transaction. This discussion may inform any party involved in compiling or assessing financial projections. This…
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The assurance partner responsible for the development of blockchain services at Aprio LLP shares her insights into how the technology works and how to succeed with it. To read the full article in Journal of Accountancy, click: What I’ve Learned Building a BlockChain Business.
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Most professionals know people who talk too much, are disorganized, or are always late to meetings, or whose communication style is downright annoying. In short, these people often waste others’ time as they muddle through their work life armed with bothersome bad habits. What this signals is a lack of respect for other people’s time. To read the full article in Financial Management, click: Are You Wasting People’s Time?
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How much are you worth? Or rather, is the answer to that question equal to the sum paid into your bank account by your employer? If not then you need to ask for more, and that means you have to negotiate with the person who pays your wages. It is something that puts the frighteners on a lot of people. It shouldn’t. To read the full article in BBC News, click: The Do’s and Don’ts of Getting a Pay Raise.
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The Problem with Exit Multiples Most of an Income Approach-based valuation is frequently in the terminal value. Thus, an Income Approach-based valuation that relies on an exit multiple to arrive at a terminal value is essentially a Market Approach-based valuation in disguise. Many practitioners do not use an exit multiple to arrive at a terminal value for this reason. Nevertheless, numerous practitioners prefer to use an exit multiple. The basis is straight-forward: the goal is to arrive at a value of the business at the end of the discrete projection period and a hypothetical sale at that time is likely…
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Expert Witness Industry Revenues IBISWorld, an economic and industry source used by valuation and damages professionals, issues an economic report on the expert witness industry. In this article, Michael Pakter, an expert, discusses industry revenue trends—which are mixed—and also how that may affect current and prospective valuation and damages experts. Introduction IBISWorld[1] defines the expert witness industry as the provision of witnesses to offer expertise and specialized knowledge within subject areas in court cases.[2] IBISWorld defines an expert witness as a specialist consultant engaged by a law firm to provide expert opinion pertaining to a specific legal case and notes…
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These days, most of us understand that when we visit a website, download an app, or post on social media, we are sharing data about ourselves with companies. We also understand that the consequences of such sharing will only become more profound as we live more of our lives online. So it is perhaps unsurprising that companies are facing new pressures to protect our digital privacy. To read the full article in Kellog Insight, click: We are at a Data Privacy Crossroads. Where Do We Go From Here?
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In 2014, sixth-grader Lilli Hicks was diagnosed with acute myeloid leukemia, setting into motion a rush of tests, treatments and prescriptions that would consume her family’s life for the next several years. Nearly five years later, while the family’s eldest daughter has recovered physically, the Hicks’ are fighting a protracted battle to restore their financial health. Treating cancer and the unexpected costs that come with it put the family about $75,000 in debt. To read the full article in Financial Planning, click: Fighting Cancer’s Financial Aftershocks.
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Life never follows a straight path, and neither will your career. Whether your goal is to advance from your cubicle into the corner office, strike out on your own, or move into a different profession altogether, it pays to map out a strategy for how to get there. To read the full article in Journal of Accountancy, click: Strategic Career Mapping Can Lead to Professional Fulfillment.
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In Dissenting Shareholder Appraisal Rights Matters (Part II of II) The Delaware Court of Chancery decisions on the treatment of synergistic value in dissenting shareholder appraisal rights cases provide meaningful guidance to valuation analysts, legal counsel, and other courts. This final part of the article continues the discussion on recent judicial decisions issued by the Delaware Court of Chancery where synergistic value was a consideration in a dissenting shareholder appraisal rights matter. This discussion provides insights related to the treatment of synergistic value within the context of a statutory appraisal rights fair value controversy. [su_pullquote align=”right”]Resources: Foundations of Financial Forensics…
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Of Your Work? What can a BVFLS professional do to stand out amongst his or her peers? In this article, Rod Burkert shares his thoughts. How do BVFLS professionals like us to demonstrate our analytical skill? How do we exhibit our problem-solving acumen? How do we showcase our report writing talent? I have an idea…turns out it is somewhat controversial…but read on and let me know what you think. All creatives—artists, writers, musicians, photographers, graphic designers, website developers, etc.—carry a portfolio of their work they can show to a prospective employer or client and say, “See, I’ve done this. This…
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When we see CEOs, founders, influencers and other people highlighted in our daily scrolls on our devices, the individuals almost always look polished. They are poised and confident, and they most surely achieve inbox zero at the end of every day. Yet what is rarely captured is the less photogenic stuff—the steady grind, the setbacks and sacrifices—that come on the way to success. To read the full article in Ideas.Ted.Com, click: What I Wish I’d Known when I Started My Career.
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Planning their daily routine in retirement could be less complicated than most clients think, writes a Wall Street Journal columnist. In fact, most of what they will do as retirees are found in their current daily chores. “[T]he average day in retirement involves a fair amount of puttering,” which “typically doesn’t cost a lot of money,” the columnist writes. It is good news for clients who are worried about burning through their savings. To read the full article in Financial Planning, click: Daily Life in Retirement is Loss Costly than Clients Think.
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When you know a high-stress event is coming up, it is natural to stress yourself out before it even happens. This common pattern is called “meta-stress,” and it occurs when you worry about stress in advance. And while tense situations are bound to happen in our personal and professional lives, there are ways to alleviate those uneasy feelings beforehand, and save yourself from the buildup of anxious thoughts that can take a toll on your well-being. To read the full article in Thrive Global, click: How to Prepare for Stress Before It Happens.