Tips for Expert Witnesses (and Legal Counsel) from a Litigation Strategist Expert witnesses need to prepare, but what other factors may help the expert win-over the jury? Wendy Pearson, a seasoned litigation strategist, shares her views on this subject.
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Studies in the Closely Held Company Valuation (Part II of II) In the first part of this two-part discussion, the author identified six transaction risk factors attempting to sell a controlling (including 100 percent) interest in a closely held company. Those included: 1) an uncertain time horizon to complete the offering or sale; 2) “Make ready” accounting, legal, and other costs to prepare for and execute the offering or sale; 3) risk as to the eventual sale price; 4) uncertainty as to the form (e.g., stock or cash) of transaction sale proceeds; 5) inability to hypothecate the subject equity interest;…
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Why Clients Need to Discuss End-of-Life Care Baby boomers are at the forefront of the conversation around end-of-life planning, which should include discussing end-of-life treatments with family members and physicians, and designating health care proxies. Elizabeth O’Brien, retirement reporter, also suggests reviewing elder planning tools and resources, which includes a free consumer End of Life Guide. To read the full article in MarketWatch, click: You Need to Talk to Your Doctor About How You Want to Die
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Rate Hike Pause is Good News for Leveraged Closed-End Funds The Federal Reserve held steady on interest rates last week, not long after Fed chief Janet Yellen indicated officials would “proceed cautiously.” This could benefit leveraged closed-end funds. These funds tend to be more volatile than other financial products, Binyamin Appelbaum explains, but they may be a smart investment for people with a long-term focus. To read the full article in The New York Times, click: Fed Keeps Rates Steady and Says Labor Market Is Improving.
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How to Prepare for the Lease Accounting Standard The new lease accounting standard could have a significant impact on companies’ balance sheets after it takes effect. Chris Hatten, CPA, and Nicole Riley, CPA, with PKF Texas discuss five things companies can do to prepare. To read the full article in the Houston Business Journal, click: 5 Things to Consider Under the New Lease Accounting Standards.
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Estate of Morrissette v. Commissioner, 146 T.C. No. 11 (April 13, 2016) The Tax Court’s ruling in Morrissette is very important to the estate planning community, in that, intergenerational split-dollar life insurance arrangements have become much more popular since the IRS released its final split-dollar regulations in 2003. Yet, widespread use of this technique has been suppressed by uncertainty with respect to the tax result. Further, the IRS has oftentimes taken the position (in audits) that a lump sum premium payment should be treated as a gift to the lower generation even if the economic benefit regime was used to…
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Five Proven Strategies to Generate High Growth In this article, Hinge Marketing focuses on organic growth and five proven strategies for generating it.
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Six Transaction Risks Owners Face Selling a Company that May Explain DLOM (Part I of II) In this first of a two-part article, Robert Reilly reviews the various models analysts use to estimate the DLOM and factors analysts consider in the DLOM selection. Valuation analysts often value closely held companies for transaction, taxation, financing, accounting, litigation, and other purposes. Depending on: 1) the business valuation approaches and methods applied, and 2) the benchmark valuation data used, the analyst may initially conclude the value of the closely held company on a marketable (as if traded on a stock exchange) basis. In…
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Advising Your Business-Owner Clients on Transitions As baby boomer entrepreneurs move toward retirement, their advisers should ask a series of questions about their financial and emotional states to help them plan their exit strategies. Patricia M. Annino, JD, suggests, among other things, advisers should ask about how quickly clients want to sell, how the sale will affect their families, and whether they want to keep working in the business after the deal is finalized. To read the full article in the Journal of Accountancy, click: Key Questions to Ask the Family Business Owner who Plans to Sell.
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Federal Agencies Face New Disclosure Requirements for Public-Private Partnerships Federal agencies will be required to present disclosures about public-private partnerships in their general-purpose financial statements under guidance issued by the Federal Accounting Standards Advisory Board. Ken Tysiac, JofA editorial director, discusses the standard. To read the full article in the Journal of Accountancy, click: New Guidance Issued for Federal Public-Private Partnership Disclosures.
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The debate over the use of non-GAAP performance measures continues. Even as the prevalence of these items grows in the financial reports of public companies, cautionary tales of the uses and abuses of such metrics garner headlines. Lucas M. Parris, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Non-GAAP Measures: Here to Stay? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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Electronic Communication can be Fraught with Peril for the Unwary CPA Electronic communication can be fraught with peril for the unwary professional. CPAs who become over-reliant on this form of communication confront increased professional liability risk. This column explores some of the more common risks CPAs may encounter with electronic communication and discusses how a professional can make appropriate use of the media while avoiding potential liability exposure.
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Economic growth in the U.S. registered a frail 0.5% in the first quarter; the worst showing since Q1 of 2014. A strong dollar and a drive by businesses to draw down inventories contributed, as did slow investment due to low oil prices. However, Lucia Mutikani discusses that analysts are optimistic the pace will pick up as some stifling factors fade in coming quarters. To read the full article in Reuters, click: U.S. Economy Stalls in First Quarter as Activity Weakens Broadly.
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Companies Plan Cost Reductions Over Economic Concerns Spurred by concerns over the global economy, 88% of respondents to a survey of senior executives at Fortune 1000 companies say they are planning to look for ways to cut costs in the next two years. Matthew Heller explains. To read the full article in CFO.com, click: 88% of Firms Planning Cost Cuts in Next Two Years.
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Three Apps That Can Make Traveling Easier Apps for last-minute hotel booking, finding your way through traffic, and booking flights can make your travel experience more enjoyable. Greg LaFollette, strategic adviser with CPA.com, provides some tips to breeze through your next trip. To read the full article in the Journal of Accountancy, click: Expanding Your App-titude.
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In Part 1, Travis W. Harms, Mercer Capital Financial Reporting Valuation Group lead, walked through the mechanics of the option pricing model (OPM) with a view to making the model more intuitive to non-specialist report users. In this post, he addresses the model from a more qualitative perspective, evaluating the model’s use and potential misuse in practical application. To read the full article in Mercer Capital’s Financial Reporting Blog, click: A Layperson’s Guide to the OPM: Everything You Always Wanted to Know About the OPM, But Were Afraid to Ask (Part 2). This article is republished from Mercer Capital’s Financial…
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Differences Between the Two Values Damages remedies often focus on lost profits and lost business value, with such remedies typically calculated by financial experts. There continues to be a trend in the courts to preclude experts from testifying, or to disregard them altogether because their opinion does not meet the reasonable certainty standard. Either of these outcomes can be a devastating result for the client. These results occur, in part, from a lack in understanding of the proper calculation of lost profits or lost value. A relevant and reliable opinion, able to withstand the court’s scrutiny in litigation, needs to…
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The informational interview can show off your initiative and soft skills to a potential employer. However, the convenience of online fact gathering has caused the informational interview to fade. But, as Sabine Vollmer, senior editor of CGMA Magazine, explains, a new generation of job-seekers is rediscovering this classic networking tactic. To read the full article in CGMA Magazine, click: How to Turn a Classic Networking Tactic into a Job Lead.
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There’s a window of opportunity before clients reach age 70 in order to mitigate some of the bite. Paul Norr shares some great tips to prepare your clients for their future years. To read the full article in Financial Planning, click: Avoid the Social Security Tax Trap.
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A merger or acquisition is a critical move, and many don’t work out. Are you ready to make the jump? John J. Bowden Jr. explores some topics you should consider first. To read the full article in Financial Planning, click: How to Play the M&A Game.