GSS Insight - Valuations Articles
When is a business valuation needed?
The prospective sale of the company might seem to be the obvious reason for getting a business valuation, but there are many other reasons as well. These include divorces, ESOPs, litigation, IP0s, buy/sell agreements, mergers and strategic planning.
How new Medicare tax could affect sale of a business
The new 3.8 percent Medicare tax may apply to business income as well as individual income if the business is a passive activity or consists of trading financial instruments or commodities. The taxes can affect the sale of the business.
Star power may decide royalties in foreign athletes' tax cases
Golf star Sergio Garcia found himself in Tax Court last month over a dispute about $1.7 million in taxes. The question came down to how much of his fees from an endorsement agreement were royalties and how much were for services. As a resident of Switzerland, he is exempt from U.S. taxes for royalties.
Buy-sell agreements protect your business
Do you and other key members of your business have an agreement describing what happens in the event of the death, disability or withdrawal from the business of one of the owners? What would become of your business if something happened to you, your business partner or a fellow shareholder?
Does your practice need a firm administrator?
There will always be some administrative tasks that law partners have to handle, but there are many issues that can be handled by a qualified firm administrator. With the right person and the right processes, you could add billable hours to your day.
Is the discounted cash flow method dead?
Some say the U.S. Bankruptcy Court has "discredited" the discounted cash flow method of valuation in a recent court case. But a close review of the opinion may yield a different conclusion - good news for practitioners of the popular valuations method.
Tread carefully before opening branch law office
Like any business opening a new division, a law firm should analyze its reasons for wanting a branch office and plan carefully for the costs and opportunities it might provide. Branch law offices don't always succeed and unsuccessful ones can end up costing the firm more than might be expected.
Beware of hidden liabilities when selling your business
If you're preparing to sell your business, beware of issues you may not have prepared for. Hidden liabilities – those unplanned nuisances that can depress the value of your company – can put a real damper on your plans to sell your company.
Valuations and independence: A complex issue
Valuations analysts must be aware that their work can be used by clients for different purposes, intentionally or unintentionally, and that could impair their independence on future audit engagements. The decision about whether independence may be impaired is becoming increasingly complex and must be evaluated on a case-by-case basis.
How to determine the net worth of key employees
A key person’s death or disability could spell disaster for some companies. So it's crucial that businesses hedge against this potential loss. But how do you go about figuring the worth of a key person in a business? And how do you insulate your business against that possible loss?
When should an attorney call a CPA or business adviser?
When should an attorney call a CPA or business adviser for assistance? The short answer is, "Whenever business issues or numbers are involved." Involving a CPA or business adviser in litigation and practice management matters can help you realize greater profit and have a much healthier practice.
Divorce: The importance of pension plan valuations
Valuing pension plans in divorce cases involves complex areas of law and accounting. Haste, ignorance or a lack of preparation can have catastrophic results for the divorcing couple in the years to come.
Update addresses impairment of intangible assets
New guidance issued this summer applies to all reporting entities – public, private and not-for-profit – for testing impairment of indefinite-lived intangible assets. Learn about the guidance from the Financial Accounting Standards Board.