• Mergers and Acquisitions/Exit Planning - QuickRead Top Story

    Exit Planning

    October 29, 2025

    Examining Available Sale Options and Steps to Maximize the Financial Outcome (Part I of II) Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This two-part comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. I have been involved in buying…

  • QuickRead Top Story - Valuation/Appraisal

    Business Valuations Used in ESOPs

    October 23, 2024

    Federal Rules and Regulations Governing ESOPs Business valuation reports of employer’s securities owned by ESOPs are subject to review by plan fiduciaries, government agencies, and IQPAs auditing the ESOP’s financial statements. Each of these readers have their own responsibilities to the participants and beneficiaries of the plans. This article will examine the federal rules and regulations governing ESOPS, the responsibilities of the report readers, and the use of the report as audit evidence. Introduction Business valuation reports of employer’s securities owned by Employee Stock Ownership Plans (ESOP) are subject to review by plan fiduciaries, government agencies, and independent qualified public…

  • QuickRead Top Story - Valuation/Appraisal

    “Adequate Consideration” Defined?

    April 24, 2024

    A Legislative Approach? In April of 2023, the United States Department of Labor (DOL) committed to move forward with a regulation to clearly detail “adequate consideration” in section 408(e) of the Employee Retirement Income Security Act of 1974 (ERISA). For decades the DOL has utilized litigation versus heeding Congress’s edict to enact regulations regarding adequate consideration and it seems as though action is going to finally be taken. This article discusses recent developments suggesting a change in their approach. In April of 2023, the United States Department of Labor (DOL) committed to move forward with a regulation to clearly detail…

  • Case Law - QuickRead Top Story

    Legal Update

    May 3, 2023

    May 2023 In the recent case of Munro v. University of Southern California, the issue raised there is when and whether can a Plaintiff proceed to trial on a new damages theory after the discovery deadline has passed. This article discusses FRPC 37, the federal rule of civil procedures that sets forth the standard for admitting or denying the admission of a new theory under the circumstances described above. For those of us caught up in the chaos of litigation, it may sometimes seem that scheduling orders and court deadlines are arbitrary and subject to change at the judge’s whim.…

  • QuickRead Top Story - Valuation/Appraisal

    Data Reliability Issues

    November 4, 2020

    When is there a Duty to Corroborate Data? NACVA’s Standards Board (SDB) was formed in 2016 with the purpose to promulgate NACVA’s Standards, including the development of interpretations, amendments, restatements, and new releases of NACVA’s Standards as deemed necessary and prudent. While being able to influence the very rule governing one’s profession is an astute honor, the most rewarding role performed by the SDB is that of responding to questions that a member has asked or issues they are dealing with. This article addresses data reliability questions and issues, and how it relates to the NACVA standards. NACVA’s Standards Board…

  • QuickRead Top Story - Valuation/Appraisal

    Valuation Treatment of the ESOP

    June 10, 2020

    Repurchase Obligation Liability There are certain valuation aspects that are unique to employee stock ownership plan (ESOP) sponsor company valuation engagements. The ESOP repurchase obligation is one of those aspects. There is a diversity of practice in the valuation profession as to how to treat the repurchase obligation for sponsor company valuations performed for ESOP administration purposes. There are several alternatives that may be appropriate depending on the facts and circumstances of the assignment, and the analyst’s interpretation of the fair market value standard of value for ESOP administration engagements. This discussion provides a hypothetical ESOP sponsor company valuation to…

  • QuickRead Top Story - Valuation/Appraisal

    Comments: A Follow-up Response to Michael McKean on ESOP Valuations

    January 22, 2020

    Robert Reilly Shares His Thoughts on Impressions Should a valuation analyst accept an ESOP valuation engagement? That is the question raised by Michael McKean in his article written in response to the recent QuickRead article series by Robert Reilly. In this article, Mr. Reilly shares his thoughts on the subject matter. I am old enough to remember the early television show, The Original Amateur Hour. I started watching the show in the 1950s, although it debuted on television in 1948 (before my time). I remember the spinning wheel and the phrase, “Round and round she goes, and where she stops…

  • QuickRead Top Story - Valuation/Appraisal

    The Role of the Valuation Analyst

    January 15, 2020

    In an ESOP Formation Financial Feasibility Analysis (Part II of II) This is the second of two-part article that discusses ESOPs. In this part, the author focuses on quality of earnings, liquidity, and plan design analyses. Owners of a private company who are looking for an exit strategy may consider the sale of all (or part) of the company to an employee stock ownership plan (ESOP). Such a strategy may be particularly attractive to baby boomer private company owners who are seeking retirement and liquidity and who would prefer to see their loyal employees retain a stake in the company…

  • QuickRead Top Story - Valuation/Appraisal

    The Role of the Valuation Analyst

    January 8, 2020

    In an ESOP Formation Financial Feasibility Analysis (Part I of II) This two-part article discusses ESOPs. Owners of a private company who are looking for an exit strategy may consider the sale of all (or part) of the company to an employee stock ownership plan (ESOP). Such a strategy may be particularly attractive to baby boomer private company owners who are seeking retirement and liquidity and who would prefer to see their loyal employees retain a stake in the company ownership. This article considers the role of the valuation analyst in performing an ESOP financial feasibility analysis. Such an analysis…

  • QuickRead Top Story - Valuation/Appraisal

    Book Review

    December 18, 2019

    Best Practices: Thought Leadership in Valuation, Damages, and Transfer Price Analysis This fall, Robert F. Reilly and Robert P. Schweihs published Best Practices: Thought Leadership in Valuation, Damages, and Transfer Price Analysis. The book celebrates the 50th anniversary of Willamette Management Associates and is intended to present thought leadership. The topics selected for inclusion are topics that the authors felt did not already enjoy thought leadership discussion in the current literature. As the authors note: “we were not satisfied with the breadth or depth of the available literature in [many of the topics covered]. We usually concluded: Someone should write…

  • QuickPress

    Tax Traps for Divorcing Clients

    February 20, 2019

    The surprise split of Amazon CEO Jeff Bezos and his wife MacKenzie puts advisors on alert: Are you prepared with appropriate retirement and tax advice if your clients divorce? It’s unlikely that Bezos will have to crack open his Amazon 401(k) or IRA to get through this event. But for your average client, that’s exactly where most of their wealth may be. To read the full article in Financial Planning, click: Tax Traps for Divorcing Clients.

  • Litigation Consulting - QuickRead Top Story

    Overview of the But For Investment Portfolio

    October 16, 2018

    To Measure Trustee Breach of Fiduciary Duty Damages The but for investment portfolio is a tool that damages analysts utilize to estimate economic damages when there is an allegation of a breach of fiduciary duty with regard to the management of an investment. In its simplest form, the but for investment portfolio estimates the value of a portfolio but for the alleged breach of fiduciary duty. Case law precedents established the but for investment portfolio analysis as a method to estimate economic damages on a market adjusted basis. While the concept of a but for investment portfolio analysis is simple,…

  • QuickPress

    Agencies Propose Amendments to Employee Benefit Plan Reporting

    August 24, 2016

    Federal Agencies Plan Amendments to Form 5500 Employee benefit plans would face new reporting requirements under extensive changes to Form 5500, Annual Return/Report of Employee Benefit Plan, proposed by the federal government last month. The federal agencies are also proposing to require all group health plans to file Form 5500 along with a new Schedule J. Sally P. Schreiber, Tax Adviser senior editor, explains. To read the full article in The Tax Adviser, click: Agencies Propose Amendments to Employee Benefit Plan Reporting.

  • Practice Management - QuickPress

    Current Developments in Employee Benefits and Compensation

    December 9, 2015

    This article covers recent developments in employee benefits, examining, among other things, the Affordable Care Act’s complicated reporting requirements, the proposed fiduciary responsibility rules, and updated procedures to correct employee plan failures.  Terry Richardson, principal, and Bryce Tholen, manager, both with PwC LLP in Dallas, take an in depth look at what’s involved.. To find out more on The Tax Adviser article, click: Current Developments in Employee Benefits and Compensation.

  • Case Law - QuickPress

    Private Equity Funds Liable for Bankrupt Company’s Withdrawal Obligation

    August 28, 2013

    Sun Capital Partners court found that the private equity fund actively participated in the management of its portfolio company In a recent and significant ruling from the First Circuit, Sun Capital Partners III, L.P. et al. v. New England Teamsters & Trucking Industry Pension Fund, No. 12-2312, 2013 WL 3814985 (1st Cir. July 24, 2013,) the court has determined that private equity funds can be held liable for its bankrupt portfolio company’s withdrawal obligation, as imposed under the Employment Retirement Income Security Act (ERISA).  As reported by The National Law Review, the ruling was made on the basis that a…

  • Mergers and Acquisitions/Exit Planning - QuickRead Featured

    Private Capital Markets: The Major Themes

    January 9, 2013

    There’s Lots We Know about Private Capital. There are Things We Don’t Know, too—and Need to Be Aware of. Robert T. Slee explains in this excerpt several key macro insights—and related themes—that his recent book Private Capital Markets is based on.  The macro insights are that corporate finance theory doesn’t predict behavior in private capital markets, and valuation, capitalization, and transfer are not discrete and unrelated areas.  Themes include insights on the differences between public and private markets, compliance, relative value, and more. 

  • QuickPress - Valuation/Appraisal

    Tax Moves to Make Now—WSJ, Reuters, Accounting Today, Accounting Web

    December 5, 2012

    Although 2013 Rates Are Still Unclear, Smart Planners Are Making These Moves Today Laura Sanders at the Wall Street Journal reports that the annual scramble to make smart tax moves before December 31 is proving especially vexing this year, since Congress still hasn’t settled 2013 tax rates on income, investments, large gifts, and estates. Deductions and other breaks are in doubt.  And some questions—such as the applicability of the alternative minimum tax—are still unsettled for 2012. Nonetheless, tax planning is possible.  Some suggestions: