What Buyers and Sellers Should Know About Earnouts

What Buyers and Sellers Should Know About Earnouts

It is not uncommon for private company M&A deals to include an earnout. This is a risk-allocation mechanism whereby a portion of the purchase price is deferred and is based on the performance of the acquired business over a specified period. The purchase agreement...

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Tax Court Ruling Clarifies Profits Interest

Tax Court Ruling Clarifies Profits Interest

In a recent case, the Tax Court upheld the idea that receipt of a partnership’s “profits interest” is a non-taxable event as detailed in Revenue Procedure 93-27. This case provides guidance on the treatment of the receipt of a profits interest. A “profits interest”...

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M&A Deal Value Falls While Count Remains Steady

M&A Deal Value Falls While Count Remains Steady

The value of global merger and acquisition (M&A) deals was lower in the second quarter of this year even as the number of announced or completed deals flirted with near-record highs, according to the PitchBook Global M&A Report for the second quarter of 2023. Deal...

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Year-End Tax Planning Tips for Individuals

Year-End Tax Planning Tips for Individuals

As the holidays approach, it is time to consider tax planning moves that will help lower this year’s tax bill, as well as set you up for tax savings in future years. The good news is that it appears there will not be any significant unfavorable federal tax changes...

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ESOP Valuations Under Increased IRS Scrutiny

ESOP Valuations Under Increased IRS Scrutiny

An employee stock ownership plan (ESOP) can facilitate the transfer of a business to the owner's children or employees over a period of years in a tax-advantaged way. However, the IRS recently issued a statement warning businesses about a range of compliance issues...

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Prevent Your Industry from Determining Your Fraud Destiny

Prevent Your Industry from Determining Your Fraud Destiny

Occupational fraud risk is not necessarily shared evenly by all business sectors. Certain industries — for example, construction, real estate, manufacturing, and transportation — are usually more vulnerable to employee theft, according to the Association of Certified...

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What You Should Know About Donor-Restricted Assets

What You Should Know About Donor-Restricted Assets

Donor-restricted assets present a good news-bad news scenario for nonprofit organizations. The good news is that these assets are real donations that your organization can use to further its mission. The bad news is that the assets must be used for the specific...

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Why You Need a Formal Gift Acceptance Policy

Why You Need a Formal Gift Acceptance Policy

Gifts and donations are vitally important to nonprofit organizations. But not all donations are created equal, especially non-cash gifts and in-kind donations. In some circumstances, these kinds of donations can cause more problems than they are worth. This is why...

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Should ESG Matter to Your Nonprofit Organization?

Should ESG Matter to Your Nonprofit Organization?

There is a good chance you have heard the term ESG, which stands for environmental, social, and governance. ESG is a framework used to assess how corporations are addressing various sustainability and ethical issues. The role of an ESG program is to ensure corporate...

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Will Your Crypto Transactions Be Reported on a Form 1099?

Will Your Crypto Transactions Be Reported on a Form 1099?

Some taxpayers may be unaware of all the federal tax reporting requirements for cryptocurrency transactions — especially when it comes to issuing and receiving a Form 1099 for 2023. If you buy something with cryptocurrency, you will not receive one. However, you may...

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