Statement of Financial Accounting Standards No. 157 (FAS 157) first impacted financial statements issued for years beginning after November 15, 2007. Its effect on the most recent round of year-end financials issued by companies, underscores the critical role of independent appraisers with market knowledge when navigating these new financial reporting guidelines.

Analysis of the American Recovery and Reinvestment Act of 2009

As an owner of a privately held business, you have significant personal wealth already invested in your company. When reviewing the annual returns your business delivers, it’s easy to calculate returns based on the book value of the company. For example, book value of $4 million and pre-tax earnings of $1 million generates an attractive 25% return. However, you certainly wouldn’t sell your company for book value, so the returns on the “investment” you have in your private business should be based on market value. (Market value of $20 million with the same $1 million of earnings generates a less impressive 5% return.)

Across almost every aerospace industry segment, pricing multiples are down, and owners of middle-market businesses considering the sale of their businesses are anxious over the recession’s impact on upcoming decisions to sell.

The recent economic downturn has been financially challenging for many businesses. Existing credit lines have been reduced, new loans from commercial lenders are more difficult to obtain, and accessing the public capital markets is likely not an option. So in this difficult market climate, where does a middle-market company turn for financing? The answer may be mezzanine capital.

PCE recently participated on a panel regarding “Capital Markets Trends in Distribution” at the Strategic Pricing Associates Distribution Strategy Seminar in Fort Lauderdale, Florida. In attendance were owners and senior executives from over 70 different distributors and manufacturers across all major industries.

Exclusively for American Cranes & Transport, John Eckbert and Michael Rosendahl report that ultimately, a comprehensive approach to expand the much needed investment in infrastructure is vital to preserving this asset while ensuring the future growth and global competitiveness.

The question is “how much to transfer” rather than “whether to transfer”! Low values + low AFR = make transfers now

By now, I think we’ve all heard of the proposed legislation HR 436. I suppose that some sort of tax relief is contemplated. The question is “tax relief for whom?” The answer remains to be seen, but one thing is sure, the time to make transfers is now!

Moving forward and adapting in a rapidly-changing and challenging business climate-doing “what you need to do!”