Professional Accounting Blog

    Accounting For Your Prosperity

    Typical Multiples for Business Valuation

    Posted by Lloyd Bell on Jul 19, 2019 7:27:00 AM

    Topics: Corporate Finance

    A common question that I’m asked is, “Where are the current multiples for my industry?” The answer: it depends! Think about business valuation multiples as being an average or median of a data set. It’s likely that the company in question is not an average company, but rather is probably performing above or below the average of its peer group

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    Farewell to LIBOR

    Posted by Lloyd Bell on Mar 4, 2019 10:41:09 PM

    Topics: Corporate Finance

    Over the past 20 years, we have witnessed an almost complete transition in the lower middle-market from prime-based loans to those based on LIBOR (London Interbank Offered Rate). In fact, it’s estimated that there are currently over $350 trillion of loans and other financial products based on LIBOR.

    There are many reasons why the shift occurred, notably the fact that LIBOR is market-based while prime is an administrative rate.

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    Maybe I Should Give up Coffee...

    Posted by Lloyd Bell on Nov 20, 2018 2:20:43 PM

    Topics: Corporate Finance

    I recently came across a 2015 study by the University of Innsbruck that concluded that people who drink black coffee, tonic water or enjoy radishes are more likely to be psychopaths. Actually, it states that people who enjoy those items are more likely to exhibit signs of “Machiavellianism, psychopathy, narcissism, and everyday sadism”. Not sure how “everyday sadism” differs from just plain old sadism, but they’re Austrian and must know something I don’t. Anyway, I happen to enjoy all three of those things, although I must admit the tonic water needs gin to make it palatable.

    The reason, according to the study, is that psychopaths enjoy taking risks. The bitter flavors found in nature (or black coffee) are often from plants that are poisonous.

    Thanks for dropping the knowledge, Lloyd. But where are you going?

    If psychopaths enjoy taking risks, would that suggest that entrepreneurs are psychopaths? Of course not. Psychopaths generally have a lack of empathy and feeling for others, selfishness, lack of guilt, and a superficial charm that manifests exclusively to manipulate others. OK, that sounds like some entrepreneurs I’ve met, but risk taking on its own can be explained by other, less menacing-sounding traits.

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    Happy 65th Baby Boomers!

    Posted by Lloyd Bell on Aug 30, 2018 3:44:47 PM

    Topics: Accounting & Auditing, Corporate Finance

    Much of the excitement in recent years has centered on the great transfer of wealth that is expected to occur as Baby Boomers retire. There is no denying the demographics: the Pew Research Center reports that 10,000 Boomers will turn 65 every day for the next 19 years. Gads…where are we going to put them all?

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    How High Are We?

    Posted by Lloyd Bell on Jun 6, 2018 2:48:50 PM

    Topics: Accounting & Auditing, Corporate Finance

    GF Data Resources began its latest quarterly report with the statement, “High valuations and abundant use of debt continued to mark completed deal activity in the first quarter of 2018.” Let’s dig deeper and get a better understanding of “high.”

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    Taxes and Business Value

    Posted by Lloyd Bell on Mar 1, 2018 1:38:00 PM

    Topics: Accounting & Auditing, Corporate Finance

    Will the changes in the tax code impact the value of your business?

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    Increase in Plastic and Rubber Manufacturing is Expected as Prices of Raw Materials Decrease

    Posted by Lloyd Bell on Nov 1, 2017 1:55:56 PM

    Topics: Accounting & Auditing, Corporate Finance

    The following overview of the plastics and rubber manufacturing industry trends is part of a larger series of industry reports that will be published between August and November 2017 for the benefit of our subscribers. Data and information provided is cited from IBIS World, a global business intelligence leader specializing in industry market research.

    In 2016, Meaden & Moore clients in the plastics and rubber manufacturing industry experienced a 9.8% decrease in revenue. This decrease in revenue caused the net income for the clients in this industry to fall 15.0%. The plastic manufacturing industry as a whole experienced revenue growth of 1.9% over the past five years. This growth is expected to increase slightly to 2.5% over the next five years.

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    Despite Expected Near-Term Revenue Increase, Chemical Manufacturing Industry Continues to Face Major Hurdles

    Posted by Lloyd Bell on Oct 3, 2017 3:59:17 PM

    Topics: Accounting & Auditing, Corporate Finance

    The following overview of the chemical manufacturing industry trends is part of a larger series of industry reports that will be published between August and October 2017 for the benefit of our subscribers. Data and information provided is cited from IBIS World, a global business intelligence leader specializing in industry market research.

    In 2016, Meaden & Moore clients in the chemical manufacturing industry experienced an average decrease in revenue of 1.2%, but due to a decrease in costs of sales, gross margins increased 1.1% and net margins by 1.2%. The chemical manufacturing industry as a whole has matched the decrease of 1.2% in revenue over the last five years. This downturn is expected to reverse and turn into an average increase of 1.7% over the next five years.

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    Publishing Industry Revenues Continue to Decrease Due to the Continued Growth of Digital Media

    Posted by Lloyd Bell on Aug 29, 2017 11:27:21 AM

    Topics: Accounting & Auditing, Corporate Finance

    The following overview of publishing industry trends is part of a larger series of industry reports that will be published between August and October 2017 for the benefit of our subscribers. Data and information provided is cited from IBIS World, a global business intelligence leader specializing in Industry Market Research.

    In 2016, the information industry for Meaden & Moore clients was comprised mostly of newspaper publishing companies. These clients experienced an average decrease of 4% in revenue in 2016. Although, due to a large decrease in operating expenses, Meaden & Moore clients in the information industry showed a 19% increase in net income. This decrease in revenue was experienced by the newspaper publishing industry as a whole, which has been declining at a rate of 6% for the past five years. 

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    Increased Number of Household Pets Gives Veterinary Services Industry Positive Outlook

    Posted by Lloyd Bell on Aug 23, 2017 8:59:14 AM

    Topics: Accounting & Auditing, Corporate Finance

    The following overview of veterinary industry trends is part of a larger series of industry reports that will be published between August and October 2017 for the benefit of our subscribers. Data and information provided is cited from IBIS World, a global business intelligence leader specializing in Industry Market Research.

    In 2016, Meaden & Moore clients in the veterinary services industry experienced an average increase in revenue of 9.7%. The veterinary services industry as a whole has experienced strong positive revenue growth, averaging 3.4% over the last five years, a trend tied closely to unemployment decline. This growth was largely caused by an increase in the number of pets that American households have, and the increasing age of those pets.

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