Internal Revenue Code (IRC) Section 1202 is a significant tax benefit that should be considered by those who have invested in small businesses and startups. This tax exemption allows noncorporate taxpayers who acquired qualified small business stock (QSBS) at original issuance and have held the stock for at least five years, the opportunity to take advantage of preferential tax treatment upon disposition of the QSBS.
Needless to say, COVID-19 has impacted the economic landscape of many businesses, across a wide array of industries, around the globe. As a result, many businesses have experienced increased risk and uncertainty about the future. This risk and uncertainty have caused many proposed and pending M&A transactions to be renegotiated, put on hold or terminated altogether.
Many practitioners are familiar with the benefit of using disregarded entities (DREs) or Single Member Limited Liability Companies (SMLLCs) in structuring merger and acquisition transactions. However, advisors should also consider the advantages of using F reorganizations to solve certain issues that can be encountered when forming a SMLLC.
In an article for Construction Executive published on May 19, 2019, Scott Hazy shared an analysis of the 2019 Georgia Construction Outlook Survey and the business considerations of busy Georgia contractors when facing the top challenge of attracting and retaining talent in the hot market given the number of revenue increases and project backlog in recent years.
Like many businesses, you may have put off implementing the necessary changes required to align your business with the new revenue recognition accounting standards. These standards, set by the Financial Accounting Standards Board (FASB), became effective this year for annual reporting periods, and in 2020 for interim periods.
Net Working Capital (NWC) is one of the most contentious points in a deal process and a topic that is frequently ignored on the front end of a transaction. NWC is derived from a company’s balance sheet and represents current assets, less current liabilities at a given point in time.
In a recent article published by Bloomberg, John Yeager, Director of Business Transformation Services at Bennett Thrasher, discusses several factors behind the recent trend of accounting firms acquiring technology companies.
Many practitioners are familiar with the benefit of using disregarded entities (DEs) or Single Member Limited Liability Companies (SMLLCs) in structuring merger & acquisition transactions. However, advisors should also consider the advantages of using F-reorganizations to solve certain problems that can be encountered when forming a SMLLC.
Earn-out provisions are often utilized in merger and acquisition (M&A) transactions to bridge gaps between sellers and buyers. For example, when the buyer cannot justify paying more than $45 million for the subject entity and the seller will not settle for less than $50 million, a carefully-structured earn-out contingency may help delay, and possibly relieve, the disagreement.
As investors increase their demands for financial statements that are more reliable, more relevant, and less an accounting of history (no pun intended), the two primary global bodies charged with establishing standards of financial accounting that govern the preparation of financial reports – Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) – have sought to meet those needs through promulgation of a consistent set of standards.