In the same way that preventive maintenance is essential for keeping a car running smoothly, accounting internal controls are crucial for ensuring a business operates efficiently and securely. Just as neglecting regular oil changes, tire rotations, and brake checks can lead to costly repairs and potential breakdowns, ignoring or inadequately implementing internal controls can expose a business to significant risks, including fraud, financial misstatements, and operational inefficiencies. [Read more…]
Business Succession Planning Errors to Avoid
12/18/2018 Posted By
Business succession planning requires careful considerations by business owners as leadership changes effect the entire business including employee retention, customer relationships, and products or services offered by the company. Avoiding the following common succession planning errors will help business owners achieve a successful leadership transition: [Read more…]
Business Valuation Seminar Fraud
07/05/2018 Posted By
Business owners and their attorneys need to beware of companies that offer business valuation and consulting services seminars. These seminars are usually a closed invite only event that will snare a few business owners who are anxious to sell their business. The key is to convince a business owner that his or her business is worth much more than it is and in the process to charge a large fee for a written report to support this fictitious number. [Read more…]
Key Factors That Affect Business Value
06/19/2018 Posted By
Most business owners never think about the value of their business until they are ready to sell and retire. At this stage it is often too late to enhance the value of the company . The following key factors affect the sale value of most businesses. [Read more…]
Tennessee Supreme Court Adopts Modern Valuation Methods For Dissenting Shareholder Disputes
06/15/2018 Posted By
In a case involving dissenting shareholders forced out of a closely held corporation in Nashville, the Tennessee Supreme Court has overruled its prior case law and adopted a standard that will allow trial courts to use modern methods such as discounted cash flow to determine ” fair value” of dissenting shareholders stock. [Read more…]
Business Valuation and The New Tax Law
05/11/2018 Posted By
The Tax Cuts and Job Act signed into law by President Trump in 2017 will have both long term and short term effects on business value as the provisions in this legislation will require more complex modeling by business valuation professionals for after tax cash flows and the cost of capital calculations. [Read more…]
Business Valuation and Forensic Accounting
02/23/2018 Posted By
The business valuation and forensic accounting disciplines often are required when valuing a closely held business for divorce and shareholder disputes. Controlling shareholders may attempt to minimize income and cash flow and understate assets in order to minimize the amount of cash required to pay minority shareholders or divorcing spouses. Valuation and Forensic experts are able to uncover these type of financial misstatements and make adjustments to correct these intentional errors to avoid undervaluing the closely held business involved in the litigation. [Read more…]
Valuation of Family Businesses Can Pose A Challenge
01/01/2018 Posted By
Family-owned businesses are not usually run like large public companies and working together can bring out the best and worst in a family owned business entity. Here are four Key questions that business valuation professionals ask when valuing a family owned company. [Read more…]
United States Treasury Withdraws Proposed Changes to IRC Regulation 2704
11/08/2017 Posted By
Business valuation professionals and estate planning attorneys can take a sigh of relief as United States Treasury Secretary, Steven T. Mnuchin, on October 2, 2017 proposed that the changes to Internal revenue Code Section(IRC) 2704 be withdrawn. The changes to this IRC regulation could have effectively eliminated discounts for lack of control and discounts for lack of marketability in family owned businesses. [Read more…]
New Tennessee Law on Discount for Lack of Marketability in Tennessee Divorce Valuation
07/15/2017 Posted By
The use of a marketability discount in Tennessee divorce valuations has been a source of some confusion based on court rulings. A recent amendment to the Tennessee Code will provide clarity to business valuators who prepare divorce valuations in Tennessee. [Read more…]