CLR
Showing 241–256 of 345 results
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Back to Basics – ’Tis the season for succession planning
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 504
Abstract: Year end is a time of planning for many business owners, and an important part of this process is succession planning and preparing the next generation of management for what lies ahead. Lenders, of course, have a vested interest in their borrowers’ successors. This article points out that succession planning isn’t just for business owners nearing retirement; lenders may need to revise loan covenants to require key-person insurance. Also, a valuation professional should evaluate buy-sell agreements.
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Spotting customers ripe for a turnaround
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: As the economy continues to mend — sputtering along the way — commercial lenders must remain ever-vigilant in identifying customers that show signs of financial distress. An ailing customer may be a good candidate for a financial workout, or a “turnaround.” This article shows how to detect problems early and how a turnaround team works.
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The lowdown on depreciation
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 890
Abstract: Changes in tax rules for depreciation may have unexpected effects on borrowers’ financial statements. Lenders who don’t understand their potential impact might respond incorrectly to their borrowers’ financials. This article discusses the effects that Section 179 expensing and bonus depreciation will have on some borrowers’ balance sheets and income statements — effects that are different for borrowers who provide tax-basis financial statements than for those who use Generally Accepted Accounting Principles (GAAP). A sidebar discusses these breaks as they affect companies with leasehold, restaurant or retail properties.
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After the dust settles – Accounting issues for business combinations
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 793
Abstract: Why borrowers’ financial statements often look markedly different following a merger or an acquisition is connected to the accounting rules for business combinations. This article offers some points lenders should keep in mind as they review their borrowers’ financial statements. It discusses the basics of purchase price allocation, and notes that business appraisers can help a borrower with the more complicated aspects of a business combination, such as earnouts, deferred tax assets and liabilities, and bargain purchase prices.
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Back to Basics – Your borrowers’ hidden liabilities
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 481
Abstract: It’s every lender’s nightmare: A borrower gets blindsided by an unexpected liability that renders it insolvent, irreparably tarnishes its reputation or impairs its ability to repay debts. Not every potential liability is reported on the balance sheet, so this article presents some hidden liabilities that careful scrutiny can uncover: contingent liabilities, underfunded pensions, and industry and internal risks.
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Financial statement footnotes are more than a P.S.
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 475
Abstract: The review of borrowers’ financial statements is a critical tool in evaluating risks. But it’s the footnotes that may be most helpful in revealing underlying details — and potential problems. This article shows how footnotes can provide information about preferential treatment in related-party transactions; changes in accounting methods in order to manipulate financial results; significant events that could materially impact future earnings or impair business value; and the existence of certain contingent liabilities.
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In good form – Getting borrowers to think outside the corporate box
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 988
Abstract: Many borrowers operate as C corporations to limit their personal liability. But sometimes the costs (such as double taxation) and hassles of incorporation outweigh the benefits. Hybrid options, however, offer the best of both worlds: limited personal liability and tax savings. This article describes the pros and cons of sole proprietorships and general and limited partnerships, along with such hybrid options as limited liability companies (LLCs), limited liability partnerships (LLPs) and S corporations. A sidebar explains why it’s sometimes beneficial to set up separate legal entities.
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What drives value, drives credit
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 827
Abstract: Balance sheets give financial statement readers insight into a company’s financial position — its assets and liabilities — at a given point in time. But it’s dangerous to equate the book value of equity on the balance sheet with the equity’s fair market value. For many reasons, these values can be significantly different. This article explains why a balance sheet can present an incomplete picture of financial position, and why it’s important to track future earnings and evaluate local comparables.
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Back to Basics – Demystifying deferred taxes
August / September 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 487
Abstract: Deferred tax assets and liabilities can confuse just about everyone. A lender reviewing a borrower’s financial statements may wonder what they are and how the company quantifies them. This article explains deferred taxes and points out the difference between deferred tax assets and deferred tax liabilities. This understanding can help lenders judge when assets are being overvalued or liabilities understated to achieve a rosier outlook.
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Cash flow statements tell a story
August / September 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: Lenders who use the statement of cash flows as an assessment tool can gain insight into their customers’ financial health, cash management skills and loan worthiness. But they need to understand what they’re seeing — or they could draw the wrong conclusions. This article explains the three sections of a statement of cash flows and what lenders should look for while reviewing it.
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Top of the heap – Be aware of the most rampant fraud risk areas
August / September 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 957
Abstract: When fraud strikes a borrower, its ability to repay debt — and the quality of its collateral — may be compromised. This article shows how lenders can protect themselves from fraud losses by identifying and monitoring high-risk balance sheet accounts. It focuses on the fraud-prone areas of accounts receivable, accounts payable and inventory. A sidebar lists some of the ways executives under pressure might misstate or exaggerate financial results.
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Does your borrower need new management?
August / September 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 679
Abstract: Lenders who recognize when it’s time for a borrower to have a management change can help streamline the transition and prevent financial turmoil. This article discusses specific factors a lender should consider in helping a borrower decide whether it’s best to bring in a family member, hire more experienced outsiders, or sell to a larger organization.
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Back to Basics – How to work with FASB codification
June / July 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 472
Abstract: As lenders review their borrowers’ 2010 and 2011 financial statements, they may notice references to Accounting Standards Codification (ASC) in the footnotes, instead of the familiar Statement of Financial Accounting Standards (SFAS) references. Many lenders are uncertain about what these new citations mean and why the Financial Accounting Standards Board (FASB) has rewritten its rules. This article explains how ASC affects commercial lenders today.
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Key person life insurance can help prevent mayhem
June / July 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 659
Abstract: An unexpected event, such as a heart attack, a fatal car accident, or a resignation involving a key executive, could cause costly damage to borrowers’ businesses. One way business customers can guard against this risk is by purchasing key person life insurance for their most important leaders. This article explains how it works, what it costs, and how much coverage is appropriate.
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Compilations, reviews, audits – Be confident about the differences
June / July 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 612
Abstract: CPAs prepare three types of financial statements — compilations, reviews and audits — in order of increasing assurance level and cost. Unfortunately, many lenders are unfamiliar with the term “assurance” and how these offerings differ. This article explains what each type involves and the circumstances in which a particular approach might be best.
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Interpreting financials – Think like an auditor
June / July 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 994
Abstract: Historic financial statements may reveal signs of financial distress and provide the foundation for future projections. But a financial analysis approach based on audit techniques allows lenders to identify and target high-risk areas. As this article explains, the process involves using a risk assessment to create a scorecard for each borrower, and it describes a few generic ratios that belong on every scorecard. But a sidebar illustrates the need to customize one’s financial analysis approach for different types of borrowers.