The Ten Commandments of Selling Your Business

Tad Render and Domenic Rinaldi The sale of your business is often a significant life event. The tips below will help you through the process and maximize the value of your business. 1. Thou Shall Understand Goals and Objectives  Ask yourself what you are trying to achieve by selling your business. Is it financial security? […]

Put a QOE Report to Work for You

An independent quality of earnings (QOE) report can be a valuable tool in mergers and acquisitions. It’s important for both buyers and sellers to look beyond the quantitative information provided by the selling company’s financial statements. Quality Matters There’s a lack of guidance from the American Institute of Certified Public Accountants (AICPA) regarding scope and […]

M&A due diligence: Don’t accept financial statements at face value

The M&A market was hot last year, and that momentum is expected to continue in 2019. Before acquiring another business, however, it’s important to do your homework. Conducting comprehensive due diligence can be a daunting task, especially if you’ve never negotiated a deal before. So, consider seeking input from an experienced accounting professional. Reviewing historical […]

Sales Tax Implications in Asset Acquisitions

Two often overlooked aspects of asset acquisitions relates to sales tax due on any of the specific assets acquired and successor liability of seller’s unpaid sales tax obligations. Bulk Sale Exemptions When a transaction is structured as the acquisition of net assets certain assets transferred to the buyer may be subject to sales tax. In […]

Accounting for M&A: Business Combination v. Asset Purchase

One common challenge in accounting for a merger or acquisition is how to record the transaction on the buyer’s financial statements. The first step is to determine whether the buyer has acquired a business or simply purchased a group of assets. The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2017-01, Business […]

Impact of Recent Tax Reform on the Private Equity Industry

On December 22, 2017 President Trump signed the Tax Cuts and Jobs Act (the “Act”) which will have a far reaching impact on private equity funds, their investors and portfolio companies. The following is a summary of key provisions of the Act that will affect private equity sponsors beginning in 2018. The list is a […]

New Partnership IRS Audit Rules Impact Private Equity and M&A

Summary Recently issued legislation completely replaces and transforms the IRS’s partnership audit procedures. Under existing IRS rules, the partners of a partnership are generally responsible for the payment of any tax deficiency for the taxable year being audited. Therefore, the acquirer of a partnership interest currently does not bear the risk of pre-closing federal income […]