• Corporate Tax Reform and Its Impact on Private Company Valuation

    The Tax Cuts and Jobs Act became law in December 2017, and now private companies and their investors must consider how the changes in tax law impact business valuations. Specifically, stakeholders should consider how the Tax Act impacts their projected cash flows and the inputs and assumptions that drive the estimation of enterprise value.
  • The Pandemic’s Impact on Business Insurance Coverage

    With the pandemic and its consequent economic turmoil, new challenges and questions arose for companies, including the power and limits of business insurance coverage. To explore the pandemic’s impact on insurance coverage, I spoke with Todd Rhoads, vice president and professional services practice group leader at EHD Insurance. I wanted to find out what he is seeing in the business insurance arena.
  • Business Interruption Claims in a Knot after Pandemic

    This feature does not look at business interruption claims as a result of COVID, but rather how business interruption claims were analyzed and evaluated in the past and what impact COVID-19 has had on this process to date and going forward. The world is adjusting to a new normal, and how business interruption claims are evaluated is evolving as well.
  • New Depreciation Rules Affect Mergers and Acquisitions

    The Tax Cuts and Jobs Act modifies rules related to depreciating tangible property, net operating losses (NOLs), interest expense limitations, and the taxation of foreign income. One area that remains mostly untouched are the rules related to taxable and nontaxable reorganizations, spin-offs, incorporations, and liquidations.
  • Five Ways to Enhance Your Banking Relationships

    Financial services are critical to the long-term viability of an organization, yet the global pandemic and the resulting economic uncertainty presents a challenge even to the most well-established banking relationships. Over the past year, lenders and borrowers contended with the introduction, and regulatory evolution, of new federal programs – such as the Paycheck Protection Program – and the frustrations of maintaining operations amidst public health regulations. Here are a few tips for fostering productive communications with your lender during difficult times and beyond.
  • IRC Section 1031 and Real Estate Like-Kind Exchanges

    Owners of investment property are acutely aware of the double-edged sword that awaits a sale. The owners will finally be able to realize the benefit from years of hard work maintaining the appreciated property, but they also could face a substantial tax liability on the sale of the investment property. For taxpayers who wish to continue holding an investment rather than cashing out, Internal Revenue Code (IRC) Section 1031 provides a strategy that allows for tax deferral whereby the taxpayer exchanges the investment property for like-kind property. There have been some major changes to Section 1031 in recent years. Notably, the Tax Cuts and Jobs Act (TCJA) made only exchanges of real property eligible for Section 1031 exchanges, and the Treasury Regulations that were issued in November 2020 provide a revised definition of real property for purposes of Section 1031. However, understand that President Joe Biden’s tax plan, mentioned during the 2020 election, referenced eliminating tax breaks for real estate investors; thus, Section 1031 could be eliminated as a strategy in the future
  • Building a Core Competency in Mergers and Acquisitions

    At many middle-market companies, mergers and acquisitions (M&A) are few and far between. But if your company’s strategy includes growth by acquisition, M&A needs to be a core competency. Fortunately, this does not require staffing a large internal transaction group.
  • Comfort with the Uncomfortable: CFO Leadership

    Recently I had a conversation with a coworker about professional development to help them prepare to move beyond their current role. The exchange took me back to how unprepared I felt some 10 years ago when I stepped into the CFO role for the first time. There was no textbook I had read or class I had taken that prepared me for the pace and randomness of the CFO role. One can certainly learn from others if you have a good mentor or teacher, and reading articles and attending CPE do help take some of the mystery away over time. In the end, though, the best way to learn is through the experience of being in the role. This column has been prepared to help those who aspire to be CFOs someday understand some of the dynamics they may encounter when stepping into that role.
  • The Past, Present, and Future of Consolidation in Public Accounting

    In many ways, the KPMG transaction was the catalyst for a wave of mergers and combinations that has taken place across the accounting profession over the past 30 years among firms of all sizes. In this feature, we look at what motivates “the urge to merge” and examine the implications of continuing consolidation within the profession.
  • Corporate CPAs: A Beacon of Ethical Behavior

    In all likelihood, I’m guessing your CEO and board usually set financial targets that call for significant sales growth – perhaps even when the core product line has been in decline for years. You and your finance team are expected to deliver this growth while also planning for reduced costs and delivering increased income on the bottom line. If you hit headwinds, you better protect the bottom line at all costs, right? Wall Street and other stakeholders will not be forgiving if you miss the targets you’ve communicated.
  • Lean Accounting Brings Focus and Direction to Company Performance

    Companies across all industries for the past 20 years have been adopting lean manufacturing as a strategy to improve performance. Lean accounting emerged soon after, and it has grown in recent years as a related strategy to align the financial side of an organization with the overall lean effort.
  • Private-Label Pricing Strategy to Optimize the Bottom Line

    Most manufacturing companies, especially in the consumer products industry, will encounter the situation when the sales department presents an opportunity to sell a private-label product to a customer. Unless you have a strategy in place to determine if you can compete in this area, properly vet the opportunity, and then price it, your bottom line could be adversely affected.
  • Forecasting Cash Flow Vital to Surviving the Storm

    Cash is king! Without cash, you are done: turn out the lights, lock the doors, and go home. Monitoring cash and modeling future cash flows can provide an early warning regarding the health of your organization, so accurately forecasting your company’s cash flow is a business imperative. Indeed, accurately forecasting cash flow, especially as you continue navigating COVID-19 and its economic impact, is a matter of corporate survival.
  • IRC Section 163(j): Another Cost of Leveraging an Acquisition

    Ever since the economic crash of 2008, foreign and domestic corporations have fought hard to get back to the days of steady growth. A lot of corporations have grown organically, but many essentially expanded through acquisition. Without the luxury of having excess cash reserves, these corporations typically opt to leverage their acquisitions by taking on some form of debt.
  • Don’t Be “Floored” by Purchase Accounting Struggles

    No two merger and acquisition deals are alike. Each is unique, opening the door to new challenges and uncharted territory for those tasked with determining the tax treatment of the transaction. One challenge that often gives practitioners headaches is how to handle assumed liabilities in an asset acquisition.
  • New Managers: Cultivate These Core Leadership Skills

    You finally earned a promotion to manager. But after the congratulations from colleagues and new business cards, it’s up to you to maximize this new role and grow into an impactful leader and respected colleague.
  • Pa. Conversion Statute Could Spur Reorganizations

    While reviewing a possible re-organization involving a traditional merger, savvy consultants consider whether the restructuring could be accomplished more efficiently through one or more corporation-to-limited liability company conversions.
  • Zero-Based Budgeting: Building for Success Again, and Again, and Again

    There are three ways for a company to increase economic value: increase revenue, cut costs, or do a combination of the two. But a number of “growth-starved” companies have moved toward zero-based budgeting (ZBB) in an effort to stay profitable.
  • The Internet of Things: The CPA’s Role in the New World of Business

    A new wave of technological innovation, called the Internet of things (IoT), has started to spread. It is on the verge of creating significant disruption in a wide range of industries.
  • IRC 384: Buying a Winner yet Still Losing Out

    You may be familiar with Internal Revenue Code Section 382 of the tax code, which limits an acquiring corporation’s ability to use certain preexisting tax attributes once the target corporation experiences an “ownership change.” The triggering of Section 382 can raise some rather complex issues, and may even serve as a potential roadblock to profitable, tax-paying corporations who are eager to reduce their tax burden by attempting to purchase the tax attributes of “loss corporations.”
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