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 | 2021-12-22T14:28:08+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|

Restaurant Profitability and Prime Costs – Ready for “Prime” Time?

Restaurant profitability and success can be traced to various factors. These factors can include: location, demographics, and concept.  Another key factor to consider is the restaurant’s prime costs. Prime Costs and Restaurant Profitability What are prime costs?  It is the total cost of food, beverage and labor. The food and beverage costs will typically be [...]

By | 2017-11-12T08:48:16+00:00 March 15th, 2017|Business Management|

Is it safe? Technology and safety: What you should know.

While speaking at a recent accounting conference on forensic accounting, a participant asked about “best practice” suggestions pertaining to technology safety.  Clearly this is a very broad and ever-changing topic.  This article is an attempt to capture some suggestions and to raise awareness, as most of us need to maintain at least a minimum level [...]

By | 2018-02-15T10:14:32+00:00 January 19th, 2017|Cyber Security|

Importance of Management Interview and Site Visit

When preparing a business appraisal for a business, financial statements, tax returns, leases and operating agreements are often reviewed and utilized.  Such information is useful in deriving an opinion of value, but often only provides a narrow and incomplete picture of the business.  As most business owners will tell you, there is more to their [...]

By | 2017-01-19T16:39:01+00:00 January 4th, 2017|Blog, Business Appraisal|