Earnings Quality is More than Adjusted EBITDA

Buyers perform exhaustive pre-acquisition due diligence of target companies that spans financial, tax, legal, IT, operational, marketing, HR, and other matters.  Central to financial due diligence is the target’s earnings quality.  Discussion of earnings quality usually focuses solely on recent historical EBITDA, normalized by making various adjustments.  Of course, normalized EBITDA is critical information. [...]

By |2018-10-17T13:32:25+00:00October 5th, 2018|Acquisitions, Financial, International, Select Articles, Taxes|Comments Off on Earnings Quality is More than Adjusted EBITDA

Blockchain and Its Potential Use in Accounting

Blockchain, meet accounting.  I think you two will have a great relationship. You were practically made for each other. For every debit, there must be a credit. The foundation of accounting works so well that there haven’t been significant changes since Luca Pacioli's "double-entry" system was documented in the 1400's. Getting to its basic definition, [...]

By |2018-10-15T18:01:21+00:00September 17th, 2018|Blockchain, Financial, Select Articles, Taxes|Comments Off on Blockchain and Its Potential Use in Accounting

From 35% to 21% – Yes, the tax cuts made your company more valuable.*

In May, I had the opportunity to attend the annual Fair Value Conference organized by the American Society of Appraisers (ASA) in Los Angeles. As one may expect, a hot topic at the conference was the impact of the Tax Cuts and Jobs Act (TCJA) signed into law by the Trump Administration on December 22nd [...]

By |2018-06-20T18:42:31+00:00June 7th, 2018|Financial, Governments, Taxes, Valuation|Comments Off on From 35% to 21% – Yes, the tax cuts made your company more valuable.*

IRC Section 2701, Special Valuation Rules

I had intended to write a simple blog entry about taxable estate gifts and transfers, but I wound up circling the rabbit hole of IRC Section 2701. Section 2701, titled "Special valuation rules in case of transfers of certain interests in corporations or partnerships," sets forth valuation rules for gifts of certain interests in closely [...]

By |2018-06-20T18:54:17+00:00March 12th, 2014|Financial, Taxes|Comments Off on IRC Section 2701, Special Valuation Rules