On Business Valuations The Tax Cuts and Jobs Act (TCJA) changes many aspects of how business analysts perform valuations. Upon passing of the TCJA, Jim Hitchner moved quickly to gather and disseminate information about the TCJA and its effect on business valuation. He has written two comprehensive articles in Issues 72 and 73 of Financial Valuation and Litigation Expert. The information in this article summarizes some of the main points expressed in those publications.
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If you or your organization is interested in adopting blockchain technology, you need to know the difference between public and private blockchains. One might be a better option than the other. This blog post can help you decide. To read the full article in AICPA Insights, click: Public vs. Private Blockchains: What CPAs Should Know.
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Triggered by the growing demand for greater value, the financial services industry is creating new categories of products and services that never existed, expanding access in ways that were never expected, providing greater transparency and simplicity—and driving down costs to unprecedented lows. To read the full article in FinancialPlanning, click: How Advisors Can Beat the Fee Compression Race.
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Women financial advisors stand a long way from equal footing with men in terms of hiring and pay—and independent broker-dealers are no exception to the industry-wide disparities. The average share of female registered representatives out of the total headcounts of the largest IBDs amounts to an estimated 17%, according to data submitted by firms for Financial Planning’s 33rd annual FP50 survey. To read the full article in FinancialPlanning, click: Which Independent Broker-Dealers Have the Highest Percentage of Women Advisors?
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and Why It Matters! Referral marketing has dramatically evolved over recent years and, if your firm has not adopted new tactics and strategies, you may be leaving significant business on the table. In this post, Dr. Frederiksen shares some of Hinge Marketing’s thinking about how referral marketing has changed. In the coming months, Dr. Frederiksen will continue exploring this topic, looking first at the process of developing a referral marketing strategy, and then discuss some of the most effective tactics his firm has seen.
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Choices that Range from Arithmetic Mean to Linear Regression How should valuation analysts go about selecting a transactional multiple? There are a host of multiples and options for deriving these. In this article, the author shares his thoughts on what to consider when selecting a multiple.
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The IRS announced relief from late-payment penalties and that it will allow late elections for taxpayers subject to the new Sec. 965 transition tax on deemed repatriated foreign earnings, which was enacted by P.L. 115-97, known as the Tax Cuts and Jobs Act of 2017. To read the full article in The Tax Adviser, click: Sec. 965 Transition Tax Penalty Relief Issued.
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Some wealth management firms are finding that solutions to two of the industry’s big stumbling blocks—succession planning and diversity—may be intertwined. Indeed, a link between the two emerged when firms began to diversify their advisor staffs, according to executives. To read the full article in FinancialPlanning, click: Is Diversity the Key to the Succession Plan Challenge?
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For the future of financial advice, the writing isn’t on the wall, it’s on the mobile phone screen, says Christopher P. Van Slyke, financial planner and founder of wealth management firm, WorthPointe. Van Slyke, who’s based in Jackson Hole, Wyoming, says the tipping point for him was when he saw that the local bank, Bank of Jackson Hole, was touting its app in a community paper. To read the full article in FinancialPlanning, click: Despite Fast Growth, Mobile Wealth Management Stumbles.
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This article briefly discusses the current trends in the practice management industry, as these trends may directly and indirectly affect both the management company and the healthcare entity. This overview of the services provided by practice management groups, is followed by a discussion of the competitive, reimbursement, regulatory, and technological environments in which practice management groups operate.
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A Study of the Experts’ Inputs and Court Opinion How does a court go about deciding a valuation case when two experts oppose each other? The author examines the DFC Global Corporation decision to see what that reveals and how that may impact an expert’s future engagement. The author finds three takeaways for readers.
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Business economists have grown a little less optimistic about the outlook for the U.S. economy as a result of U.S. trade policies. The National Association of Business Economists reports that its survey of 45 professional economic forecasters now projects a median 2.8% growth in real GDP from Q4 2017 to Q4 2018, down from 2.9% three months ago. To read the full article in Think Advisor, click: A Mixed Outlook for the U.S. Economy.
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As technology continues to change the investment landscape, a new Merrill Edge report has found that nearly 40% of mass affluent Americans are comfortable consulting artificial intelligence for financial advice. But that’s not all… To read the full article in FinancialPlanning, click: 40% of Americans are Comfortable Seeking Financial Advice From AI.
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With the Social Security Administration’s recent update on its long-term financial health, advisors and their clients now have a new time frame for the anticipated depletion of the retirement program trust fund. Unless Congress acts, the trust fund is expected to run out of money in late 2034, at which point Social Security will be able to cover just 77% of retirement benefits. To read the full article in FinancialPlanning, click: Enough About Social Security: For Some, Pensions Are the More Immediate Issue.
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Marketplace Platform for Aspiring and Experienced Litigation Support Professionals Until now, a lawyer could not put out a call for help with a single case description and submit that to one, a dozen, or an entire community of relevant subject matter experts simultaneously with the single push of a button. Until now, an expert might have to choose between paying for advertising to be listed in a directory and/or set up their own website in the hope that additional expert witness consulting work would flow to them. The Exchange’s marketplace offers a different paradigm and value proposition. This has been…
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and Eat it Too! What is net working capital? The definition of net working capital is not fixed, and the meaning may vary by industry. It is also a key factor in a valuation and understanding there is a deficiency or excess will impact the value of the company and structure of an acquisition.
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New lease accounting standards come into force at the start of next year which will fundamentally change how companies can report off-balance sheet financing. How will the new rules affect finance leaders? To read the full article in Accountancy Age, click: Lease Accounting Standards: Are Multinationals Sitting on a “Leaseberg” of Huge Proportions?
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Many long-term investors have amassed substantial capital gains since the market bottomed out in March 2009. While great-looking on paper, such gains have real tax implications for engaging in even routine investment adjustments. To read the full article in FinancialPlanning, click: Kitces: Three Strategies for Managing Big Capital Gains.
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Lack of communication and trust has depleted 60 percent of family fortunes, according to a recent white paper from BNY Mellon’s Pershing entitled “Parent Trap: Avoiding Common Multigenerational Wealth Planning Pitfalls.” On the other hand, poor financial planning accounts for three percent of bankrupted family wealth. To read the full article in Financial Advisor, click: Lack of Communication Killing Family Wealth.
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Reliability of Client’s Data This article discusses how experts can handle the unique situation of receiving unreliable data. Litigation and appraisal literature will be reviewed as will the author’s handling of unreliable data in a recent lost profits case. In the end, warning signs will be reviewed to alert the expert to potential problems with the projected data.