Considerations when Forecasting Revenue

Why is Forecasting important? Where do you want your business to be in 5 - 10 years? Creating an accurate financial forecast for a business is a valuable tool.  Forecasting addresses growth, capacity, and resource needs. Forecasting helps with the achievement of goals / targets, and provides confidence for stakeholders (lenders and shareholders), and should [...]

By | 2019-09-11T14:34:33+00:00 September 12th, 2019|Management|

Finding Hidden Assets from your Spouse – Where to Look?

Hidden Assets - Becoming Creative Hiding assets from a spouse is never a good idea. Such actions will likely have costly results, such as sanctions by the court or added alimony. Depending on the issue(s) and the state where you live, the perpetrator could be arrested or reported to the IRS or other authorities. Despite [...]

By | 2018-11-19T20:15:16+00:00 November 19th, 2018|Divorce|

When are transactions at fair market value?

When determining the fair market value of a business, an appraiser may consider using the private company transaction method. Pricing multiples can be derived from this method, which is based on actual consummated transactions in privately-held stock. Do these transactions represent fair market value? Fair market value (“FMV”) is defined in The International Glossary of [...]

By | 2018-03-11T20:31:39+00:00 March 8th, 2018|Business Appraisal|

New tax fraud targeting professionals – What you need to know

Every year, tax season creates opportunities for criminals looking to steal your money. The IRS just issued an Alert regarding a new tax fraud. Criminals are targeting CPA firms and tax professionals to obtain client information. The criminals use this information to prepare fraudulent tax returns (with your correct social security number, address, dependents, bank [...]

By | 2018-03-08T18:40:02+00:00 February 15th, 2018|Fraud|

What is my business worth?

A business is usually the most valuable asset; yet owners typically have no idea what their business is worth.  Unlike real estate or brokerage investments, owners are handicapped by not having readily available information to indicate business worth. For example, with real estate, nearby transactions occur daily.  You can usually find that 4 bedroom, 2 [...]

By | 2018-03-11T20:32:55+00:00 November 27th, 2017|Business Appraisal|

Does a company’s sale price reflect true fair market value?

An appraiser seeking to determine a company’s fair market value may choose to use a market approach called the private company transaction method.  This method is based on actual transactions in privately-held stock. It is from these transactions any number of pricing multiples can be derived. Buyers, sellers and investors may ask, however, if the [...]

By | 2018-03-11T20:34:11+00:00 October 25th, 2017|Business Appraisal|

Get a handle on your credit before next security breach

The security breach announced by Equifax last week serves as a stark reminder that we need to do what we can to protect ourselves from identity theft. It has been reported that the potential impact could exceed 143 million customers. Currently, there are five credit bureaus. The three main credit monitoring agencies, which are well-known, [...]

By | 2017-11-12T08:21:47+00:00 September 15th, 2017|Cyber Security|

Are the financial statements wrong?

When analyzing financial statements, you may need to assess whether they are wrong.  You may need to assess whether they indicate undisclosed problems, as well. Some comfort may be gained by the situation, and perhaps some corroborative information, such as: Does the company use an outside CPA, and if so, what services does the CPA provide? [...]

By | 2017-11-21T14:27:20+00:00 July 24th, 2017|Fraud, Management|

Comparability Considerations When Using a Market-Based Methodology

Revenue Ruling 59-60 supports the market approach to value. One of the market-based methodologies, the private company transaction method, looks at transactions in privately-held stock to derive a pricing mechanisms to value a particular company. The key to this method, and to the market approach in general, is comparability. The business appraiser will attempt to [...]

By | 2017-11-21T14:27:05+00:00 June 13th, 2017|Business Appraisal|

Cash is King – managing the cash conversion cycle

It is important to understand that profit reported on a company's income statement does not equate to cash flow. Understanding a company’s cash –cycle can be vital to truly understanding and assessing how the company is doing overall. The cash cycle is an important component to understand when assessing a company’s operations and for understanding [...]

By | 2017-11-12T08:20:05+00:00 April 25th, 2017|Business Management|