Guidance from Bross Trucking v. Commissioner (2014) Valuation analysts often have to separate company-owned entity goodwill from shareholder-owned personal goodwill in the valuation of closely held companies. These valuations may be performed for family law, shareholder dispute, breach of contract, or other litigation purposes; for transaction structuring and sale consideration allocation purposes; and for ...

Healthcare Costs for Large Companies Rose Slowly in 2015 Healthcare costs for large companies rose 3.2% in 2015, research by Aon Hewitt has found.  It is the smallest increase since 1996, when Aon began tracking the data.  However, the company predicts a 4.1% increase in 2016.  David McCann discusses the findings. To find out more on this CFO article, click: Hike in Healthcare Costs Sinks to 20-Year Low. ...

How to Turn Business Cards into Meaningful Connections A conference or industry event can be a great networking opportunity, provided you stay in touch with your new contacts.  Alexandra Samuel, author of Work Smarter with Social Media, gives step-by-step instructions for keeping track of the business cards you receive and building stronger relationships. To find out more about this Harvard Business Review ...

There seems to be an imbalance between the public and private markets.  Holding private capital markets more desirable than public markets expresses and illiquidity preference.  Madeleine L. Harrigan, financial analyst with Mercer Capital, notes this is at odds with basic investment logic and the requirements of portfolio management and why it cannot continue. To read more about the results of this report i ...

Your Next Engagement Currency has played a central role in most business valuation and financial forensic engagements since the origination of the two terms. What has not been so clear lately is the changing nature of currency and for that matter, the very definition of money itself. This article explores how digital currencies originated, their attributes, and how they should be considered for your next va ...

Meet Your Advisory Team Selling a business is a one-time process for most owners. It is also a harrowing process involving professionals in many disciplines. Here is a description of the primary people assisting in the process. ...

Economists Predict an Interest-Rate Hike in December Ninety-two percent of the private economists surveyed by The Wall Street Journal believe the Federal Reserve will start raising interest rates at the policy meeting to be held on December 15-16.  In recent comments, Federal Reserve officials have suggested they were ready to act and have discussed the pace of future increases.  Binyamin Appelbaum, of The ...

Startups interested in taking advantage of the final crowdfunding regulations under the Jumpstart Our Business Startups Act passed by the Securities and Exchange Commission a couple weeks ago should be aware of nuances to the rules that may prove challenging.  Among other things, companies will have to decide whether to offer investors debt or equity.  David M. Katz discusses the new rules and the impact th ...

Fear is keeping many Americans from seeking help from a financial adviser, according to a survey conducted by the Harris Poll for financial-planning firm McAdam.  More than 70% of respondents said some aspect of dealing with an adviser scares them.  The cost of getting advice was the top concern, at 49%.  Mary Kate Nelson looks at the survey results. To find out more about this Reverse Mortgage Daily articl ...

Obviously, every equity compensation plan is different and the particular tax treatment of a given security depends on the facts and circumstances of the arrangement.  Samantha L. Albert, senior financial analyst with Mercer Capital, examines equity-based compensation and the tools available when examining these arrangements. To read more about the results of this report in the Mercer Capital's Financial Re ...

Why the Change from “Fraudulent Transfer” to “Voidable Transaction” May be a Big Deal The Uniform Fraudulent Transfer Act (UFTA) was recently amended and renamed; it is now called the Uniform Voidable Transactions Act (UVTA). “The renaming has no substantive effect whatever. Yet, it reflects an important truth about the act that merits discussion.” This article shows how changes in semantics can potentially ...

Review of BVR’s Special Report on Marijuana Dispensaries What do business valuation advisors and consultants need to know before providing consulting services to marijuana establishments? There are opportunities and challenges; keep in mind that marijuana is listed as a Schedule I Controlled Substance. At the national level, one Presidential candidate introduced the Ending Federal Marijuana Prohibition Act ...

How to Apply Survey Data to Your Company, using K-means Clustering We are in an age when fraud statistics and the individual profiles of those committing the fraud are at an all-time high. How does a firm identify factors that will enable the firm to understand the risk? The Association of Certified Fraud Examiners (ACFE) annual fraud survey—readily available for free—provides valuable insight to prevent fr ...

Large Partnerships Face Major Changes to Audits and Adjustments The recently enacted federal budget deal includes major changes to how the IRS will audit large partnerships and, when adjustments result in tax underpayments, will allow the IRS to collect the tax directly from the partnership, instead of from the individual partners.  Alistair M. Nevius, Journal of Accountancy editor-in chief, discusses the n ...

Taxpayers and practitioners are still waiting for Congress to agree on a package extending all currently expired tax breaks.  Here's a look at the expired provisions and the actions that are pending to extend them.  Sally P. Schreiber, senior editor for Tax Insider, examines tax incentives for individuals, business, and energy-related provisions. To find out more on The Tax Adviser article, click: Expired T ...

The need to develop reliable, defensible fair value markets for hard-to-value assets is universal.  Sujan Rajbhandary, senior member of Mercer Capital’s Financial Reporting Valuation Group, sits down with Travis Harms to get his insight from a financial reporting perspective on a few issues around valuations of startups. To read more about the results of this report in the Mercer Capital's Financial Reporti ...

Title III is the Newest Crowdfinance Option for Private Companies On October 30, 2015, the SEC finalized the rules for securities crowdfunding under Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012. Title III lets startups raise up to $1 million per year by selling securities exclusively through registered online intermediaries known as crowdfunding portals and broker-dealer offering plat ...

What Financial Advisors and Quantum Experts Should Consider in this Growing Market Neither the seller nor the buyer intends a dispute to arise as a result of a successful or failed M&A transaction. However, due to the economic importance of M&A decisions and the high purchase prices paid, contentious situations can be observed in around ten percent of all M&A transactions as studies have shown. ...

Use of Synthetic Credit Ratings to Determine the Appropriate Market Yield for the Preferred Equity Interest Among the estate tax planning methods that include grants of “carried” or profit interests, grantor retained annuity trusts, outright gifts, etc., entity freeze is a less known, or perhaps, less utilized tool. Yet, in certain circumstances, a freeze entity can be a compelling wealth transfer mechanism ...

United we Thrive, Divided we Fail: Brighten your Firm’s Future with Six Unity Strategies   Arguing and disrespect among partners can undermine a firm's effectiveness and productivity.  Here are six strategies for building a cohesive firm.  Jennifer Wilson, partner and co-founder of ConvergenceCoaching LLC, explains that when your leadership enhances partner unity, your firm’s success will go a long way ...