Under the IRS’s proposed new regulations, they would permanently and profoundly change estate planning for families that own a controlling interest in a privately held corporation, partnership, or limited liability company. The IRS has requested comments on the proposed regulations by November 2, 2016, and will hold a hearing on December 1, 2016. Even if the regulations are finalized in something close to their current form, portions of the regulations likely will be subject tochallenge on the grounds that they exceed the scope of the statute.
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Commercial agreements come in a variety of types, but most have certain common provisions that should be carefully reviewed in the context of the underlying transaction covered by the agreement. When entering or reviewing one of these agreements, it is important to address the five key provisions that sometimes go unnoticed or are not given proper attention in the review process: (1) Confidentiality Provisions; (2) Indemnity Provisions; (3) Consequential and Special Damages; (4) Product Warranties; and (5) Audit Rights.
A significant step in the acquisition process is determining the structure of the deal. The two most common deal structures are: (1) the purchase of the ownership interests of the target (such as a stock deal), and (2) the purchase of substantially all of the target’s assets (or an asset deal). In an asset deal, the implication is that the target’s liabilities that are not expressly assumed by the acquirer remain liabilities of the target, and the acquirer will not have exposure to them. As a general rule, this is correct.
In May 2014, FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), changing the way revenue is recognized. As of January 25, 2017, the FASB has issued ASUs to revise and clarify the guidance on the original Topic 606. In accordance with the core principle of Topic 606, there are five key steps to consider. Virtually all entities will be affected to some extent by the new guidance.
Since the issuance of the original ASU 2014-09, Revenue from Contracts with Customers, there has been several changes to that guidance, and additional limited changes are in process. The degree to which a particular entity’s revenue will be affected depends on its own facts and circumstances.
Owner-managed and family-owned businesses are often faced with the quandary of how to effectively motivate their teams to build and maintain value for the enterprise. Incentivizing employees for the long haul can be confusing territory, and owners should know that options are available in the gray area between cash bonuses and equity ownership. Offering creative packages that link employees to the growth of the company can have an immediate, positive impact on a company's cultural and financial future.
Last year, the Western world experienced the twin surprises of the UK’s vote to leave the European Union and Donald Trump’s victory in the U.S. presidential election. Elsewhere, geopolitics will play out in 2017 through numerous elections, the possibility of succession in several countries, continued economic polarization, and more. Multinational organizations must be aware of, and prepare for, such political and economic risks in both developed and developing markets.
The potential economic and development gains from gender equality are vast and well-documented—and yet they are currently being bypassed. This joint report with the United Nations Foundation explores the market potential of advancing gender equality. By investing in companies offering products and services that promote gender equality, investors can earn the “return on equality,” seizing profitable, under-tapped market opportunities. In fact, narrowing the global gender gap could add U.S. $12 trillion in annual gross domestic product.
The acceleration of technological innovations and the challenges associated with adapting to them seem to point toward a tumultuous future. That future appears to be approaching faster than ever. Companies are finding it harder to maintain their positions in industries that are increasingly subject to disruption. And while investors may not be able to pinpoint precisely which companies or industries will lead the disruption—or fall victim to it—they should do what they can to plan to take advantage of these opportunities when they arise.
The list of national retailers that have filed for Chapter 11 protection in recent years with the intention of reorganizing but instead wound up liquidating. Remember Circuit City, KB Toys, Borders, Linens-N-Things, and Sports Authority? All gone. Earlier this month, The Limited, an apparel chain dating back to the 1960s, became the first retail casualty of 2017 when it announced it would be liquidating all 250 of its stores. Others are sure to follow.