Podcasts & Audio
Mercer Capital is proud to offer a new and exciting way to access our expertise with the introduction of Mercer Capital podcasts.
With Mercer Capital's podcasts, you can access the experience, reputation, and critical thinking of Mercer Capital by listening when you want, where you want, and how you want.
Podcasts are short audio recordings that are distributed in an mp3 file format, and can be played from the desktop of a PC or Mac (using programs like RealPlayer, Windows Media Player or iTunes), can be transferred to portable MP3 players and mobile devices, or can be recorded to a CD.
If you have any questions concerning Mercer Capital's podcasts, email Matthew Washburn at washburnm@mercercapital.com.
Portfolio Valuation: Best Practices
Matthew R. Crow, ASA, CFA and Travis W. Harms, CFA, CPA/ABV
Most illiquid investments are never subject to a gift or estate tax valuation, never have to valued for a divorce, and don't have an ESOP. Instead, most are held in portfolios managed by hedge funds, private equity funds, investment banking firms, among others. Where the money goes, opportunity follows. Traditionally, these investments were valued internally, and to a great extent that is still the case. But, increasingly, investors and regulators are demanding more transparency from these holders of illiquid investments with regard to their portfolio valuation process. And, increasingly, this is resulting in a call for outside valuation specialists to assist. This presentation provides best practices guidance for portfolio valuation.
Running Time: 14 minutes
The Buy-Sell Agreements Podcast
Z. Christopher Mercer, ASA, CFA
Buy-sell agreements exist in many, if not most, closely held businesses having substantial size and/or value. Buy-sell agreements are more important than most business owners, shareholders and boards of directors realize. In this podcast, Chris Mercer discusses the basic elements of buy-sell agreements, as well as the advantages and disadvantages of certain types of buy-sell agreements.
Running Time: 17 minutes
8 Things to Know About Section 409A
(original written article authored by Travis W. Harms, CFA, CPA/ABV)
Section 409A applies to all companies offering nonqualified deferred compensation plans to employees. Generally speaking, a deferred compensation plan is an arrangement whereby an employee ("service provider" in 409A parlance) receives compensation in a later tax year than that in which the compensation was earned. "Nonqualified" plans exclude 401(k) and other "qualified" plans.
What is interesting from a valuation perspective is that stock options and stock appreciation rights (SARs), two common forms of incentive compensation for private companies, are potentially within the scope of Section 409A.
Running Time: 10 minutes, 49 seconds
Recently Gone or Going Public? Watch Out for IRC Section 409A
(original written article authored by Eden A. Gipson)
If you have an equity-based compensation plan, the stakes are higher than ever to make sure that you are valuing the compensation properly. Failure to do so can lead to excise taxes and penalties that can only be described as confiscatory. Executives in charge of maintaining equity-based compensation plans should seek advice from a qualified tax professional regarding the plan’s compliance with IRC Section 409A. Furthermore, any issuer of deferred equity-based compensation should employ the services of an independent valuation expert in order to assure that the plan is not granting deferred compensation at a discount. This article discusses the impact that IRC Section 409A could have on your business.
Running Time: 10 minutes, 33 seconds
An Overview of Personal Goodwill
(original written article authored by Wendy S. Ingalls, ABV/CPA, CBA, ASA)
In the world of FASB, goodwill is not delineated into personal goodwill and corporate or enterprise goodwill. However, in the tax world, this distinction can be of critical importance and can create significant savings to a taxpayer involved in the sale of a C corporation business.
This article discusses the issue of personal goodwill through the lens of recent court cases in which personal goodwill has come into play.
Running Time: 12 minutes, 22 seconds
Valuing Phantom Stock
(original written article authored by Wendy S. Ingalls, ABV/CPA, CBA, ASA)
Phantom stock is sometimes more "phantom" than valuation and accounting professionals would like. Small business owners may make phantom stock agreements with key employees, but fail to mention these agreements to their financial advisors, particularly, but not exclusively, when the agreements are verbal. While there is clearly an economic impact on a company’s value due to the existence of a phantom stock agreement, there are also accounting requirements that phantom stock be expensed as it is awarded (for tax purposes, it is expensed when exercised). Despite an impact on value and the reporting requirements, the agreement is frequently overlooked until exercised.
Running Time: 7 minutes, 44 seconds
The ABZ's of Business Valuation
Z. Christopher Mercer, ASA, CFA
This enlightening presentation deals with many of the important issues developing conclusions and writing reports faced by all business appraisers. After listening, you will begin to approach valuation assignments with greater understanding and efficiency.
Highlights include:
With Mercer Capital's podcasts, you can access the experience, reputation, and critical thinking of Mercer Capital by listening when you want, where you want, and how you want.
Podcasts are short audio recordings that are distributed in an mp3 file format, and can be played from the desktop of a PC or Mac (using programs like RealPlayer, Windows Media Player or iTunes), can be transferred to portable MP3 players and mobile devices, or can be recorded to a CD.
If you have any questions concerning Mercer Capital's podcasts, email Matthew Washburn at washburnm@mercercapital.com.
Portfolio Valuation: Best Practices
Matthew R. Crow, ASA, CFA and Travis W. Harms, CFA, CPA/ABV
Most illiquid investments are never subject to a gift or estate tax valuation, never have to valued for a divorce, and don't have an ESOP. Instead, most are held in portfolios managed by hedge funds, private equity funds, investment banking firms, among others. Where the money goes, opportunity follows. Traditionally, these investments were valued internally, and to a great extent that is still the case. But, increasingly, investors and regulators are demanding more transparency from these holders of illiquid investments with regard to their portfolio valuation process. And, increasingly, this is resulting in a call for outside valuation specialists to assist. This presentation provides best practices guidance for portfolio valuation.
Running Time: 14 minutes
The Buy-Sell Agreements Podcast
Z. Christopher Mercer, ASA, CFA
Buy-sell agreements exist in many, if not most, closely held businesses having substantial size and/or value. Buy-sell agreements are more important than most business owners, shareholders and boards of directors realize. In this podcast, Chris Mercer discusses the basic elements of buy-sell agreements, as well as the advantages and disadvantages of certain types of buy-sell agreements.
Running Time: 17 minutes
8 Things to Know About Section 409A
(original written article authored by Travis W. Harms, CFA, CPA/ABV)
Section 409A applies to all companies offering nonqualified deferred compensation plans to employees. Generally speaking, a deferred compensation plan is an arrangement whereby an employee ("service provider" in 409A parlance) receives compensation in a later tax year than that in which the compensation was earned. "Nonqualified" plans exclude 401(k) and other "qualified" plans.
What is interesting from a valuation perspective is that stock options and stock appreciation rights (SARs), two common forms of incentive compensation for private companies, are potentially within the scope of Section 409A.
Running Time: 10 minutes, 49 seconds
Recently Gone or Going Public? Watch Out for IRC Section 409A
(original written article authored by Eden A. Gipson)
If you have an equity-based compensation plan, the stakes are higher than ever to make sure that you are valuing the compensation properly. Failure to do so can lead to excise taxes and penalties that can only be described as confiscatory. Executives in charge of maintaining equity-based compensation plans should seek advice from a qualified tax professional regarding the plan’s compliance with IRC Section 409A. Furthermore, any issuer of deferred equity-based compensation should employ the services of an independent valuation expert in order to assure that the plan is not granting deferred compensation at a discount. This article discusses the impact that IRC Section 409A could have on your business.
Running Time: 10 minutes, 33 seconds
An Overview of Personal Goodwill
(original written article authored by Wendy S. Ingalls, ABV/CPA, CBA, ASA)
In the world of FASB, goodwill is not delineated into personal goodwill and corporate or enterprise goodwill. However, in the tax world, this distinction can be of critical importance and can create significant savings to a taxpayer involved in the sale of a C corporation business.
This article discusses the issue of personal goodwill through the lens of recent court cases in which personal goodwill has come into play.
Running Time: 12 minutes, 22 seconds
Valuing Phantom Stock
(original written article authored by Wendy S. Ingalls, ABV/CPA, CBA, ASA)
Phantom stock is sometimes more "phantom" than valuation and accounting professionals would like. Small business owners may make phantom stock agreements with key employees, but fail to mention these agreements to their financial advisors, particularly, but not exclusively, when the agreements are verbal. While there is clearly an economic impact on a company’s value due to the existence of a phantom stock agreement, there are also accounting requirements that phantom stock be expensed as it is awarded (for tax purposes, it is expensed when exercised). Despite an impact on value and the reporting requirements, the agreement is frequently overlooked until exercised.
Running Time: 7 minutes, 44 seconds
The ABZ's of Business Valuation
Z. Christopher Mercer, ASA, CFA
This enlightening presentation deals with many of the important issues developing conclusions and writing reports faced by all business appraisers. After listening, you will begin to approach valuation assignments with greater understanding and efficiency.
Highlights include:
- Getting Command of the Numbers
- Getting Command of the Business
- Developing Capitalization Rates
- Information Gathering
- The Management Interview
- Developing and Drafting Your Valuation Conclusions
- Other Not So Random Thoughts