Category: Finance & Valuation
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Why the Working Capital Peg is Important in M&A Transactions
August 21st, 2023
We will address four key questions that provide an overview of the working capital peg and its importance in M&A transactions.
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Valuation Discounts: A Game-Changer for Gift and Estate Tax Planning
May 22nd, 2023
We often hear about gift and estate taxes in the context of transferring assets for gifting and estate planning purposes. But what exactly are gift and estate taxes? In simple terms, gift and estate taxes are transfer taxes imposed by the government when assets are transferred between individuals or trusts. When business interests are being […]
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What We Can Learn from the Failure of Silicon Valley Bank
March 21st, 2023
Introduction In recent weeks, the swift failure of Silicon Valley Bank (SVB), an extremely popular bank for start-ups, has continued to make headlines. As federal regulators have continued to address the issues caused by SVB's failure, this ordeal brings up two critical questions: How does a large bank, with nearly $200 billion in deposits, fail […]
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Federal Gift Taxes – How to Plan for an Uncertain Future
February 6th, 2023
Gifting ownership in a privately held business can be a smart element of proper estate planning and a strategy to minimize taxes for both yourself and your heirs. However, Congress has historically passed legislation that shifted gift giving amounts and exclusions, making the process to optimize the timing and amount of gifts a bit tricky. […]
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4 Considerations for a Family Business Transfer
December 6th, 2022
For many business owners, retirement is the last thing on their minds until it is staring them in the face. Most business owners are kept occupied with the day-to-day operations of their business. Yet, retirement is an inevitable event which will eventually come, no matter how long it is put off. So let’s start planning […]
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What High Inflation Means for the Value of Your Business
August 23rd, 2022
Throughout 2021 and 2022, inflation has ramped up significantly. In June 2022, the Consumer Price Index (CPI) was up 9.1 percent from June 2021, representing the largest twelve-month increase in the CPI since 1981. As inflation takes hold and fiscal and monetary responses have attempted to slow it down, it brings up the question of […]
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M&A Trending Multiples as We Enter the Second Half of 2022
June 30th, 2022
The M&A environment has been very active over the past 18 months, which can be attributed to the significant surge in the housing market and the increasing number of business owners looking to retire. With the increase in M&A activity, there are plenty of success stories in which sellers are getting very high multiples for […]
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5 Things to Consider When Determining if Your Acquisition Target is Right for You
May 16th, 2022
M&A activity peaked in the fourth quarter of 2021, with multiples increasing across various industries. Multiples continued to creep up during the first quarter of 2022, which requires additional capital to close a transaction. With business acquisitions becoming more costly, acquirers need to be careful when selecting their targets and ensure the desired return on […]
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LIBOR is Finally Going Away. Here’s What You Need to Know
March 22nd, 2022
For the past four decades the London Interbank Offered Rate (LIBOR) has been the standard used by lenders for setting interest rates on mortgages and corporate debt. However, in 2017, financial authorities announced a phaseout of the use of LIBOR. Given the reliance on LIBOR as a benchmark for interest rates on loans, it is […]
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Family Business Transition – Where to Begin?
February 7th, 2022
Generational transfers represent a common attribute of family-owned business, which other types of businesses typically do not need to worry about. Despite the benefit of having a natural successor, family business transfers need to be planned appropriately to factor in leadership succession, estate planning, and the actual ownership transfer. The combination of these factors contributes […]