On October 13, 2016, RSP Permian announced the acquisition of Silver Hill Energy for approximately $2.4 billion dollars.  Based on RSPP disclosures, the assets received include: 1) wells currently producing 15,000 barrels of oil equivalent per day; and 2) 41,000 in net acreage throughout Loving and Winkler County Texas.  Grant Farrell, vice president, explains the details of this transaction. To read the fu ...

Can it Hurt the Expert? Mediation is a dispute resolution process. So, what is a process? A process is a procedure, a course of action, or a methodology. Mediation has been around for several thousand years, and the joint session has always been a pivotal part of that process. Historically, the mediation process included beginning with a joint session. Mediation is after all a facilitated negotiation. When ...

Why it Shouldn’t be A Dirty Word in the Valuation of Physician Practices The topic of goodwill in a physician practice acquisition continues to be hotly debated. There are very different viewpoints from reputable appraisers on how to value physician practices and whether hospitals can pay for goodwill in an acquisition. I often hear healthcare professionals involved in acquisitions say, “Hospitals can’t pay ...

In fairly short order, robots have begun taking over in the corporate world.  Don’t be alarmed.  This is nothing like the feared “singularity,” that prophesied (if dubious) moment when machines become smarter than humans and then, to prove it, commence wiping us out.  David McCann delves into this change to corporate finance processes. To read the full article in CFO, click: Robots, Robots Everywhere. ...

How to Secure a Higher Salary Be willing to negotiate for a higher salary when you get a job offer, as this is an opportunity to raise your pay by a significant margin.  Alison Green offers four other tips for securing a better salary. To read the full article in U.S. News & World Report, click: 5 Things to do Differently if you Want to Earn More Money. ...

After a steady build-up since the end of the credit crisis, 2016 is going to be marked as the year when the venture capital industry lost momentum, although not for a lack of investors.  Money has continued to pour in as riskier VC investments are still expected to outperform listed alternatives.  Madeleine Harrigan, senior financial analyst with Mercer Capital, explains what is happening. To read the full ...

A Valuation Perspective In this article, three U.S. Tax Court cases are discussed. Each case stems from the fallout which occurred after the discovery of the Madoff Ponzi scheme amounted to more than just lost investments for each of the investors. The end-effect is much more far-reaching and complex, as many investors have been forced to pay hefty legal bills in a battle to reduce their estate tax liabilit ...

Using the Empirical Method Business appraisers around the country have historically used comparisons to the averages found in restricted stock studies to determine a discount for lack of marketability in their valuations of a privately held, noncontrolling interest in a business. While the average discounts from restricted stock studies are useful and indicate that discounts for lack of marketability do occ ...

What NACVA is Doing to Protect Our Industry On August 4, 2016, the U.S. Treasury in lock-step with the Internal Revenue Service (IRS) published Proposed Treasury Regulation 163113-02 (hereafter, the “proposed regulations”) which intend to drastically alter the application of current Internal Revenue Code §2704, particularly as it applies to valuations of family owned businesses and family farms. The propose ...

By developing expertise in a new practice area, a CPA can increase income and become a more well-rounded professional.  Robert M. Caplan, CPA, shares his helpful insights on how to help you and your practice. To read the full article in The Tax Adviser, click: How to Add a New Specialty to Your Practice. ...

Demons and witches are scary, but the Creatures from Schedule C and the Overstatement Ogre can be downright terrifying, especially if they generate a notice from the Internal Revenue Service.  Not sure who they are?  Ann Marie Maloney, communications manager for AICPA, says, read on, if you dare. To read the full article in AICPA Insights, click: 5 Scary Tax Characters to Watch Out For. ...

Since the Federal Reserve issued guidance on leveraged lending limits, borrowers and lenders have been interested in the ratio of debt-to-EBITDA in proposed financing packages.  However, banks are supposed to steer clear of deals for which the ratio is 6.0x or greater.  Travis Harms, Mercer Capital’s Financial Reporting Valuation Group lead, explains the topic of earnings adjustments. To read the full artic ...

A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part III of III) The Pluris DLOM methodology involves calculating two values: Restricted Stock Equivalent Discount (RSED) and Private Equity Discount Increment (PEDI). Does RSED represent an illiquid position that does not directly relate to the lack of marketability of a private held business? How reliable is the RSED DLOM? As for PEDI, ...

Make the Website Dynamic, Engaging, Educational, and Targeted In this article, Dr. Frederiksen makes four recommendations to improve a website with the goal of turning the visitor into an engagement. ...

The IRS issued its annual updates of per-diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home on or after Oct. 1, 2016.  Sally Schreiber, senior editor for JofA, explains. To read the full article in the Journal of Accountancy, click: IRS Issues 2016–2017 Special Per-Diem Rates for Travel. ...

Simple Changes to the Way You Approach a Negotiation Can Help You Cut Costs and Increase Profits Taking a fresh approach to negotiation can help you cut costs and increase profit for your organization.  Samantha White, senior editor for CGMA Magazine, explains that expert negotiators draw on a raft of skills, but thorough preparation, builds confidence and is the foundation of a successful negotiation. To r ...

Mergers and acquisition activity relays much information to the general public.  Following an M&A transaction, acquirer companies conduct purchase price allocations (PPAs) to measure the fair value of various tangible and intangible assets of the acquired business.  Karolina Calhoun, senior financial analyst with Mercer Capital, discusses that the Mercer Capital Lab Services Newsletter observes and anal ...

A White Paper Detailing Use of the Pluris Database to Develop a DLOM (Part II of III) In this second part, of a three-part series, Marc Vianello examines whether discounts reported in PLURIS DLOM Database are consistent with past changes in SEC Rule 144 required holding periods; How the PLURIS Restricted Stock Discounts Correlate with other reported Metrics; How to use PLURIS Database for Benchmarking; and ...

Appraisals from Real Estate, Machinery and Equipment to Business Valuation: Book Review by Michael D. Pakter The purpose of this book review is to introduce the reader to Shannon P. Pratt’s newest book, co-authored with John Lifflander. For those improbable few business valuation professionals who do not know who Dr. Pratt is, he is the Chairman and CEO of Shannon Pratt Business Valuation, Inc. and Publishe ...

The Tax Rules Were Never Friendlier, But Changes May be on the Way The biggest loophole in the tax code may soon be coming to an end—at least according to the messages sent by the Obama administration and its recent budget proposals. The American Taxpayer Relief Act of 2012 (ATRA) set a whole new tone for most estate plans when it took the dreaded estate tax off the table. However, it is no secret that the ...