New Accounting Rules Could Encourage use of Derivatives Changes to accounting rules for derivatives may prompt companies to start using reasonable derivative-based risk-management tools, said Jim Kroeker of the Financial Accounting Standards Board. Kroeker suggested this was one possible benefit of FASB’s proposal for hedge accounting, which could be issued in September. To read the full article in Bloomberg, click: Will Planned Derivatives Accounting Changes Stem Flow of Restatements, Improve Risk Management?
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Myths about Middle Market Valuation Multiples Sometimes it seems as if the only requirements to be an investment banker are the ability to multiply two, usually single-digit numbers together and write your name. Hence, upon finishing the second grade, everyone is qualified. For example, take an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $10MM and the median lower middle market valuation multiple of five, which incidentally has nothing to do with the number of fingers on your hand.