Capitalizing on the trend The need for transition planning services has grown over the years and will continue, representing a lucrative and successful practice area for financial professionals. Harry Haigley, CVA, MBA, explains what practitioners can start doing to build their practice today.
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You know how it goes. Some billionaire or corporate conglomerate throws out a huge bid for a business acquisition that everyone is certain is way over the top. It’s impossible such an outlandish offer could be profitable or even justified based on the subject entity. From the LA Clippers $2 billion sale to the next windfall for a teenage phenom who creates a gimmicky phone app; it seems as if one of these big-dollar offers hits the press every week. Regardless of how outlandish the offer might be, sometimes overkill does pay off. Inc.com looks at five huge deals that…
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The Public Company Accounting Oversight Board (PCAOB) has beefed up its requirement for auditors to clarify the nature of relationships and transactions between related parties. The new standards were instituted by the PCAOB to counteract a number of factors that it felt were contributing to financial fraud. Ultimately, the intention is to help companies avoid financial failure and reduce harm to investors. To review the three key areas the PCAOB is stressing in its revised standard, please visit Goingconcern.com. [button color=”blue” link=”http://goingconcern.com/post/pcaob-adopts-auditing-standard-no-18-crony-disclosures” target=”_blank” font=”arial” align=”left”]Read Full Article[/button]
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Benchmarking the firm’s performance We all know financial ratios are a barometer of the health of a company. Now, let’s help our client’s unleash the power of these ratios to improve their businesses. Here’s how.
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Compensation for PCPs is increasing The increasing supply shortage of primary care physicians (PCPs) will have a significant impact on physician compensation. In turn; this will have an equally powerful effect on the valuation of PCP practices.
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More than a decade in the making, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have released a converged standard on revenue recognition. Titled, “Revenue from Contracts with Customers”, the standard is designed to enhance the process of revenue reporting and improve comparability in financial statements among corporations using IFRS and U.S. GAAP. The standard also impacts the sale of nonfinancial assets to noncustomers, such as real estate. In an in-depth interview with Accounting Today, FASB member, Marc Siegel expanded on this example, stating, “Even though you might not be a home builder and…
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In a windfall for the IRS, 77,000 foreign banks have turned over data on American account holders as part of the Foreign Account Tax Compliance Act (FATCA). The U.S. devised tax law with global reach requires all foreign banks to submit full data on all American accounts with a balance of $50,000 or more. Financial institutions that are non-compliant risk being frozen out of U.S. markets and a 30 percent withholding tax on any activity taken by the bank, and even its customers. While FATCA was billed as an effort to expose overseas tax cheats, many honest Americans and…
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NACVA and the CTI are founded on excellence, superior quality, and the spirit of pioneering. We have a rich history of partnering with visionary leaders across all spectrums of the accounting and financial consulting professions regardless of affiliation with NACVA and the CTI. Simply put, we want the best of the best among our group of subject matter experts and leaders. We are thrilled to recognize this inaugural list of professionals for their accomplishments to the profession and their communities and for their contributions yet to come. Throughout 2014 you will get to know these rising stars through a…
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What discount rate should you use? Economic damages in litigation must be reduced to present day dollar values to avoid over-compensating the Plaintiff for harm caused by the defendant. This article explains present value theory in simple terms and addresses different methodologies used in reducing future economic damages to a present day dollar value.
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A good start for a forensic accounting engagement Statistical data is commonly presented in litigation reports. The data provides valuable information to test the hypothesis. This article provides an introduction of how some statistical techniques that are readily available can be used in practice.
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Barely six months into 2014, General Motors (GM) has recalled more vehicles than it sold in the five years since it filed for bankruptcy. In February alone, 2.6 million vehicles were recalled for an ignition problem that’s been attributed to at least 13 deaths. Even so, the GM stock price has remained completely neutral since April. How is the stock valuation immune to such a corporate and public relations nightmare? Visit CNNMoney to find out. [button color=”blue” link=”http://money.cnn.com/2014/05/27/investing/general-motors-stock/index.html?iid=HP_Highlight” target=”_blank” font=”arial” align=”left”]Read Full Article[/button]
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The Expert’s Role The article offers the comments of one expert on how the courts (judges) could improve the end process.
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Anticipating questions allows us to think through the best ways to phrase our responses Questions about an expert’s skills and work can be phrased in ways that make it difficult to answer accurately on the spot, but advance preparation can smooth the process.
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Since 2008, policymakers have kept interest rates at or near zero. All this cheap money was intended to heal the wounds of the financial crisis and encourage business owners to invest in and grow their businesses. Although this approach has helped a bit, business valuations tend to be running at higher than usual rates. AVC.com has reviewed recent data and determined whether this is a business valuation bubble forming and when it may burst. Of concern are non-linear asset value/earnings ratios that go against the norm. You can read the full article below. [button color=”blue” link=”http://avc.com/2014/03/the-bubble-question/” target=”_blank” font=”arial” align=”left”]Read Full…
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Understanding the nature and risk of expected cash flow This discussion summarizes the interrelatedness of the weighted average cost of capital and the weighted average return on assets within the context of a purchase price allocation for financial reporting purposes. Failure to understand this fundamental relationship can lead to inaccurate estimates of value for the acquired assets and, therefore, inaccurate reported asset values and amortization expense on the financial statements of the acquirer. The WACC can be viewed as a weighted average of the required rates of return for the individual assets of the acquired company. The selected intangible asset…
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The impact of hoarded cash in valuations The impact on business valuators in this economic and political climate is largely observational. Observational because any forecasted financial information installed in any formula must include the impact of managements’ sources and uses of “hoarded cash.”
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Up until now, all the corporate M&A talk for 2014 has surrounded the $45 billion deal Comcast has made for Time-Warner Cable. That’s not just because of the price tag. If approved by regulators, Comcast would end up as the internet gatekeeper for one out of every three homes and businesses in the country. That’s also a lot of power and control over internet access, quality and service for one third of the country. As media titans continue to consolidate, many are asking whether it’s wise to put so much power into so few hands. The latest questions surround an…
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Proposed rule amendments for small businesses and additional exemptions under Section 3(b) of the Securities Act On December 18, 2013, the Securities and Exchange Commission released their long-awaited proposed rules on Regulation A+. The amendments to Regulation A were proposed pursuant to Title IV of the Jumpstart Our Business Startups Act of 2012. The proposed rules are intended to increase access to the capital markets for lower middle-market firms since Reg. A has been sparingly used; there were only 19 qualified Reg. A offerings between 2009 and 2012. While pre-revenue firms, start-ups and those in the early stages will not…
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Forensic professionals endure trench warfare Discovery provides a window of opportunity to gather evidence and develop expert reports. A trained forensics professional can ascertain whether cash deposits were all accounted for or secreted. It is advisable and well worth the time, trouble, and money to retain a forensic professional to conduct an analysis.
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The Appraisal Standards Board (ASB) has released the Second Exposure Draft for proposed changes to the 2016-2017 Uniform Standards for Professional Appraisal Practice (USPAP). The scheduled revisions include: Defining the term “report” Edits to eliminate confusion regarding report drafts Revisions to Standard 3 to enhance consistency with other standards and clarify dates identified and reported Edits to eliminate confusion regarding confidentiality Other edits to improve clarity and enforceability of USPAP Comments are due by June 2, 2014. They can be submitted to ASBcomments@appraisalfoundation.org. You can read the full second exposure draft at the link below. [button color=”blue” link=”https://appraisalfoundation.sharefile.com/download.aspx?id=s1b2357c1dc74621a#” target=”_blank” font=”arial”…