Barbara Walters Price

New Book, Revenue Ruling 59-60 at 50, is at the printer!

One of our newest books, Revenue Ruling 59-60 at 50: Rediscover Fair Market Value is at the printer.  We are expecting delivery any day.  From the text on the back cover:

Tagging a text with the label “classic” should not be done carelessly.  But 50 years after its initial release, few would disagree that Revenue Ruling 59-60 deserves the title.  Written in the spare, unadorned style of a government publication, the Ruling is a compact storehouse of enduring practical wisdom for business appraisers and the users of appraisal reports.  

At Mercer Capital, we decided the 50th anniversary of the Ruling’s release was a fitting time to compile this book.  Having been actively appraising privately held businesses for over 25 of the 50 years since the Ruling’s issuance, we find ourselves often returning to the Ruling, whether for guidance in novel situations or simply to confirm some intuition.  In short, it is a trusted companion.  

Our purpose in writing this book is twofold: first, to offer a guided tour through the Ruling, pointing out some of the most prominent features of the landscape (and providing the occasional warning about rough terrain); second, to pull back the curtain a bit, granting a non-technical view of how appraisers (at least this group) attempt to translate the guidance found in the Ruling into actual valuation engagements.

To review the chapter list, keep reading.

Cutting the Fat in Your Marketing Budget

I have written and spoken about marketing budgets.  I have advocated not spending less, but spending differently.  I still believe that.  Yet, I am a realist.  Many, if not most, firms are combing through the expense portion of the income statement and making cuts in order to deal with this recession which just seems to worsen with each passing day.  In talking with a professional in his early 60s who has lived through the past 4 recessions, he says this one is the worst he has seen.

As a marketing professional, be proactive.  Comb through your own budget and offer cuts.  Squeeze your vendors for the best price which I know can be difficult to do given that sometimes our vendors have become friends.  I suggest focusing on spending money on those things which have the best chance of making the phone ring - sooner rather than later. 

More likely than not, there is fat in your budget.  To tell on myself, let me give you one example.  In going through my advertising budget, we found we spend about $1000 per year on yellow pages advertising.  First of all, Mercer Capital is a national firm so we don't get "walk-in traffic."  Second, the majority of people will find us via the web.  So, that was an easy cut to make. 

My humble advice is to go through your budget and look for those expense cuts, if you haven't already.  In tough times, there is pressure on everyone to do more with less and to contribute to revenue generation.  Focus on both.

Photo:  Rabbit Scissors from The Daily Planner (www.thedailyplanner.com) 

New Article: "Recession, Market Meltdown Put Spotlight on Goodwill Impairment"

A new article was recently posted to Mercer Capital's website: "Recession, Market Meltdown Put Spotlight on Goodwill Impairment" by Travis W. Harms, CFA, CPA/ABV, a senior member of Mercer Capital's Financial Statement Reporting Group.  The article begins:

The sharp decline in stock market indices through the first eleven months of 2008 has shaved over $5.0 trillion off the equity market capitalization of companies in the S&P 500.  The falling market valuations reflect both a reduced appetite for risk and an expectation that corporate cash flows will be pressured as the global economy enters a recession of unknown depth and duration.

For auditors and financial statement preparers, the bear market suggests that the goodwill reported on many corporate balance sheets may be impaired.  The accounting for goodwill, the amount paid in excess of net identifiable assets in previous acquisitions, is set forth in SFAS 142, Goodwill and Intangible Assets.   SFAS 142 provides for an annual impairment test for goodwill, rather than systematic amortization as under prior guidance.  The two-step impairment test starts with a comparison of the reporting unit’s fair value to carrying value.  Impairment is indicated if the fair value of the reporting unit is less than carrying value.  Step 2 of the impairment test involves quantifying the amount of impairment by determining the implied fair value of the reporting unit’s goodwill. ...

... Regardless of a company’s regular annual testing date, SFAS 142 prescribes an interim test upon occurrence of an event or change in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount.  In our practice, we are observing many audit firms that regard the sharp decline in stock prices and the general economic uncertainty to be triggering events for an interim impairment test.

To read the entire article, click here.

Happy Monday

 

Top 10 Mistakes of LinkedIn Users

Christine Pilch, a co-owner at Grow My Company and Marketing Director at Bacon Wilson PC, Attorneys at Law wrote a short article entitled "Top Ten Mistakes People Make on LinkedIn" for Legal Marketing Technology. 

Oops.  I see that I commit at least half of the mistakes.  Read the article while I go and clean up my LinkedIn profile, which you can access here.

Happy Monday

Religious scene depicted in a stained glass window in the Church of St Catherine in Bethlehem.

Built over the cave where Jesus is supposed to have been born, the Church of the Nativity probably is the oldest operating church in the world, and one of the main destinations for religious tourists.
Crossing Manger Square, the main square of Bethlehem, you see a collection of buildings and towers right ahead: the Church of the Nativity. It was built in the early 4th century by Saint Helena, the mother of Emperor Constantine I, the first Christian Roman emperor. The church replaced a pagan site worshipping Adonis; its construction was the first of many steps in the spreading of Christianity around the world. The original building was burnt down in the Samaritan revolt of the 6th century, and was rebuilt soon afterwards. When the Persians sacked Bethlehem in the 7th century, they spared the Church of the Nativity after seeing the Three Magi, wearing Persian clothes, depicted inside the church.

Photo credit: http://www.traveladventures.org/continents/asia/church-of-nativity08.shtml

How to Sleep in Airports

Did you know that there is a website called The Guide to Sleeping in Airports.  According to the homepage:

For travellers who are REALLY on a budget and are looking for a way to skim a few bucks off their travel expenses, why not consider sleeping in an airport?  Many airports are actually better than local lodging.  And to top it off - IT'S FREE! 

Okaaaaay.

They have 15 tips for successfully surviving the experience.  Here is #2:

"2. Expect your flight to be cancelled and be prepared:  If weather or a schedule delay cause you to sit in the airport for longer than you had hoped, it would have been better to have been prepared.  Wouldn't it have been?  Your emergency airport survival kit should include: 

• a cheap inflatable pool raft (they fold up nicely and make the hard floor a lot more comfortable).  Keep in mind that in some airports sleeping on the floor is a no-no.
• eye shades
• ear plugs
• bottled water
• snacks
• books/magazines
• personal music device with large headphones.  You'll want full coverage to block out loud announcements.
• an alarm clock or a pen and post-it pad.  If you are travelling solo, write a "Wake me at 5:00 AM" note and stick a few on and around you -- it works.  People will wake you.
• an airline blanket and/or pillow (borrowed - NOT STOLEN!!!).
• disinfectant wipes.  Cleanliness is a problem in some airports, so these handy wipes will make your "bed" for the night a little less germ and grease covered.
• tissue/toilet paper.  Remember, in some third world airport bathrooms, you will be forced to pay a King's ransom for two single ply sheets of toilet paper.
• tipping money if you forgot to pack aforementioned toilet paper
• Vick Vapour rub.  Place a dab of this under your nose to block out bad terminal odours.
• Your camera to document your stay.
• Entertain yourselves.  A Twister mat and spin card are light and take up little room in your carry on.  Cards always come in handy.  If these are unavailable to you, luggage carts and airport wheelchairs have also brightened a few faces around here."

I especially love the Vick's Vapour rub and Twister mat.  And to think I've never, ever packed a Twister mat! 

I pray that the recession doesn't make this an option.

Did You Know that RSM McGladrey Has An ESOP Blog?

My firm values scores of ESOPs and, as such, I was happy to run across this blog, RSM McGladrey's ESOP Blog, by Nancy Dittmer, National Director of ESOP Services.  If your firm has an ESOP practice, check out this blog.

New Issue of Mercer Capital's E-Mail Newsletter Released

The December 2008 edition of Mercer Capital's e-mail newsletter, Value Matters (TM), features an article by Wendy S. Ingalls, CPA/ABV, CBA, ASA, titled "Consider the Alternate Valuation Date"

As of December 3, 2008, the major stock indexes were down on the order of 40% for the year.  In addition, the long-suspected recession has been officially declared.  While the depth and length of the current recession is laden with uncertainty, what is certain is that virtually no investment sector has remained unscathed.  For those dealing with an estate tax issue from within the last year, consideration of the alternate valuation date is almost certain to provide vital information for the estate tax filing process.

As part of the Economic Growth and Tax Relief Reconciliation Act of 2001, Section 2032 of the IRS Tax Code was designed to provide some measure of relief to those taxpayers negatively affected by fluctuating markets.  The alternate valuation date provides taxpayers the option to choose to use a date six months subsequent to the date of death to value an estate.

You can gain immediate access to these and other newsletters by visiting our Knowledge Center.

For New Marketers, Great Advice on Forming a Marketing Plan

Michelle Golden has great advice on forming a marketing plan.  If you are a new marketer, or even an old one like me who needs occasional reminders of best practices, bookmark her blog, Golden Practices.  You'll learn something.