Bank stocks ended a particularly volatile month in August 2011 on a good note. Does this stock price volatility represent a “new normal,” as banks face more macroeconomic risk?
Bank stocks ended a particularly volatile month in August 2011 on a good note. Does this stock price volatility represent a “new normal,” as banks face more macroeconomic risk?
In this article, the Mercer Capital Financial Institutions group presents an updated analysis of community banks’ performance thus far in 2011.
Is this wave of predicted merger activity finally coming to fruition? This article reviews trends in M&A activity in 2010 and highlights trends to watch for bank transactions in 2011.
After completing an FDIC-assisted transaction, the acquirer faces the task of accounting for the transaction in accordance with FASB ASC 805, Business Combinations.
In order to gauge the impact of the 2008 financial institution market trends on community banks large and small.
While most banks and their directors are generally aware of the tax benefits of an S election, there are some potential disadvantages.
Excerpted from Mercer Capital’s book, The Bank Director’s Valuation Handbook: What Every Director Needs to Know About Valuation.
This article provides a summary of capital raising transactions that have occurred in 2008 and offers insight into the financial considerations present in evaluating each capital alternative.
The majority of respondents to a recent survey presented in the January 2008 edition of Mercer Capital’s Bank Watch are expecting a difficult, if not dismal, 2008.
As the world celebrated the closing of another year on December 31,2007, many bankers hoped to soon forget one of the worst periods for bank stock performance in recent history.
In March 2010, Diamond Foods, Inc. completed its acquisition of Kettle Foods. Nearly 40%, of the purchase price was allocated to “brand intangibles.” Such a high value leads to the question: How are such valuations determined and what are the drivers?
The AICPA released a draft accounting and valuation guide (via AICPA) for Assets Acquired to Be Used in Research and Development Activities in November of 2011.
On August 10, 2011, the FASB approved a pending exposure draft, “Testing Goodwill for Impairment,” which adds an optional qualitative assessment (referred to by some as the “Step Zero” test) to the annual goodwill impairment testing process.
Companies often use contingent consideration when structuring M&A transactions to bridge differing perceptions of value between a buyer and seller, to share risk related to uncertainty of future events, to create an incentive for sellers who will remain active in the business post-acquisition, and other reasons.
In December 2010, the FASB issued ASU 2010-28, which updated rules pertaining to the appropriate measure of reporting unit carrying value.
The Public Company Accounting Oversight Board (PCAOB) recently released the “Report on Observations of PCAOB Inspectors Related to Audit Risk Areas Affected by the Economic Crisis,” which identified instances where auditors failed to comply with PCAOB standards.
When it comes to portfolio company fair value measurement and reporting, 2011 lacked the drama of 2008 and 2009. Nonetheless, private equity fund managers – and their limited partners – cannot take fair value measurement for granted.
The FASB issued an exposure draft regarding a broad range of proposed amendments to Topic 820 on June 29, 2010. The exposure draft is part of the ongoing convergence project and is intended to more closely align fair value measurements under U.S. GAAP and IFRS.
Excerpted from Mercer Capital’s book, Valuation for Impairment Testing, Second Edition
For privately held companies (particularly those sponsored by private equity and venture capital funds), getting the valuation process right the first time for equity compensation grant compliance is always the least expensive route in terms of both direct and indirect cost.
With many acquirers spending 2009 on the sidelines, the new accounting treatment for contingent consideration arrangements under SFAS 141R remains largely untested.
A purchase price allocation report should be well documented, concise, and provide sufficient background information. This article enumerates elements of a properly prepared purchase price allocation report.
Based on our review of the case and Dr. Kursh’s report, it appears that Dr. Kursh used information that was factually based and within the range of reasonable comparisons with market data in his application of the QMDM. It is unfortunate, but the Court was apparently not convinced of the reasonableness of Dr. Kursh’s assumptions and their consistency with “hard data” that was in his report and otherwise readily available.
This article comments on the embedded capital gains tax liability issue as discussed in the case, Davis v. Commissioner.