News & Insights: financial advisory services

What to Do When Your Data is Held Hostage? To Pay or Not to Pay?


By Hassan Khan  |  July 28, 2021

What should you do if your organization is the victim of ransomware? Learn how your organization can protect itself against the 100,000 new variants of ransomware that are released every day.

Cyber Crime 101: Ways to Protect Yourself Online


By Hassan Khan  |  June 7, 2021

Each year, businesses lose hundreds of millions of dollars because of cybercriminal activities, and the annual costs of cybercrime are predicted to reach $10.5 trillion. Here are some steps technology leaders can take to minimize cyber risk and keep cybercriminals at bay.

Colonial Pipeline Attack Puts Spotlight On Cybersecurity:
Is Your Business Secure?


May 18, 2021

Following a series of highly publicized cybersecurity incidents in recent months, including the Colonial Pipeline attack, President Joe Biden signed an Executive Order on May 12 to improve the nation’s cybersecurity and to protect federal government networks.

Federal Program Offers Relief to Shuttered Entertainment Venues


February 15, 2021

The Shuttered Venue Operators Grant (SVOG) program includes $15 billion in grants to help shuttered entertainment venues stay in business long enough to return once the COVID-19 pandemic is over. 

Billing Optimization Through Analytics


By Dean Boyer  |  September 12, 2020

Optimizing your billing using analytics involves much more than reengineering your current processes and procedures. By analyzing data that is relative to the bill and the billing process, you can identify variables that impact the value of the bill.

Overcoming Common Estate Planning Misconceptions


By Christopher D. Wright  |  August 26, 2020

An examination of some of the most common misconceptions that get in the way when setting up an estate plan or making alterations when life changes occur.

Bringing AI to the Security Fight: Augment the Security Team and Disrupt Machine-Speed Attacks


August 12, 2020

As companies around the globe are increasingly facing the devastating impacts of cybersecurity breaches, artificial intelligence has proven it can handle many of the processes involved in fighting cyber-threats.

Business Continuity and Disaster Recovery Preparedness Checklist


March 21, 2020

Download our Business Continuity Checklist for guidance as you identify and address key pandemic planning considerations.

Alert: Checklist for SHIELD Act Compliance


March 10, 2020

As of March 21, 2020, organizations that do business in New York State must be in compliance with the Stop Hacks and Improve Electronic Data Security (SHIELD) Act. We have developed a checklist to help clients achieve compliance.

Preparing for the Coronavirus: Business Survival Planning


March 3, 2020

Organizations need to incorporate pandemic planning into their business continuity efforts to address situations like the coronavirus, especially key components involving people, process and technology.

Achieving Efficiencies of the Financial Statement Audit Through IT


January 10, 2020

IT audits are becoming an increasingly valuable tool for nonprofit organizations, as they can help organizations identify critical issues and increase the efficiency of the financial statements audit.

Alternative Financing Methods of Unemployment Benefits for 501(c)(3) Nonprofits: Benefits & Risks


January 8, 2020

By: Ben Jonas

Nonprofit organizations have unique rights when it comes to State Unemployment Insurance programs and can gain better control of their finances by reducing their unemployment benefit expenses.

Organizations Must Prepare for the Imminent Implementation of the SHIELD Act


December 16, 2019

The Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) has been passed and will go into effect on March 21, 2020 with the intent to improve data security in the State of New York. 

Valuation Discounts Applicable to Real Estate Holding Companies


By Angela Sadang  |  May 29, 2019

Principal and valuation specialist Angela Sadang discusses real estate holding companies and the use of minority discounts (also known as the discount for lack of control, or DLOC) in the valuation of partial, non-controlling interests in entities holding real estate as their primary and most valuable asset. 

Incorporating Data Analytics Into Your Internal Controls


December 20, 2018

The evolution of technology has demanded that organizations more deeply understand the businesses they operate but has also allowed management to gain this understanding with greater ease and efficiency than ever before.

Honorees Announced for Philadelphia’s Top Lawyers Awards Program


October 1, 2018

Marks Paneth is proud to celebrate Philadelphia’s legal community through its continued sponsorship of the Philadelphia Business Journal’s Best of the Bar awards program.

Marks Paneth Sponsors Philadelphia’s Top Lawyers Awards Program


July 16, 2018

Marks Paneth is proud to celebrate the Philadelphia-area legal community through its renewed Presenting Sponsorship of the Philadelphia Business Journal’s annual Best of the Bar: Philadelphia’s Top Lawyers awards program. 

Recognizing the Symptoms of Fraud in Your Nonprofit Organization


By John D'Amico  |  February 2, 2018

“Where there is a will, there’s a way.” The old saying holds true even with employees bent on embezzling funds from their employer – whether directly or indirectly.

Mitigation of damages: Professional obligations for the expert witness computing damages


By Eric A. Kreuter  |  August 29, 2017

Eric A. Kreuter was recently published in the H1 2017 issue of Global Opportunities Bulletin. His article explains how economic damages experts can apply the Mitigation of Damages Doctrine to their casework within the context of the economic analysis.

Avoiding Damage Done by Damages Experts


By Eric A. Kreuter  |  December 6, 2016

Economic damages experts are often confronted with legal theories, which must be carefully applied to their casework within the context of the economic analysis. One example is the Mitigation of Damages Doctrine.

DEVELOPING APPROPRIATE VALUATION PROVISIONS


November 10, 2016

Shareholder agreements document the intentions of the parties in connection with, among other things, the price to be paid for an ownership interest in the event of a shareholder’s death, disability, retirement or other triggering event. There are four commonly used methods to value a company.

This article was originally published in the November 2016 issue of Metropolitan Corporate Counsel. It was written by Eric J. Barr, CPA/ABV/CFF, CVA, CFE, the Partner-in-Charge of Valuation Services, Financial Advisory Services group, at Marks Paneth LLP.

Valuation and Litigation Briefing, August 2016


August 11, 2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Fully Leveraging IP Assets


July 12, 2016

R&D is woven into the fabric of our economy, yet it receives very little attention from business magazines, let alone the mainstream press. It might seem like an altogether forgotten part of the American industrial machine, but in 2013, R&D expenditures in the U.S. amounted to a staggering $473 billion – almost 3 percent of the country’s total GDP.

This article, “Fully Leveraging IP Assets”, was originally published in The Metropolitan Corporate Counsel, July 2016. 

Valuation and Litigation Briefing, June 2016


June 22, 2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Legal Issues and Valuation of Tangible Assets, Patents and Copyrights


May 16, 2016

Understanding the nature and value of the assets of a business is essential for a variety of reasons, and it has become increasingly clear that legal considerations can play an important role. In general, asset values are an important consideration in formulating asset management and protection policies. And many of the financial crises we have experienced in recent memory can be attributed, in part, to the subjective nature of some inputs used to determine fair value.

This article by Steven L. Henning and Peter Twombly, a Partner with McCarter & English, is reprinted with permission from the May edition of The New York Law Journal© 2016 ALM Media Properties, LLC.

Creating the Bridge Between Transfer Pricing and the Valuation of Intangibles


By Angela Sadang  |  May 11, 2016

International mergers and acquisitions (M&A) are at their hottest pace since before the 2008 financial crisis, and an increasing percentage of this activity involves intangible assets as significant components of the transaction. 

As multinational companies shift ownership of intangible assets between legal entities and across jurisdictions for various strategic purposes, the most critical considerations in cross-border M&A include the identification and valuation of intangible assets and transfer pricing. 

In the article, Director Angela Sadang challenges the perception that the value of a transaction and its largely-acquired intangible assets is motivated by financial reporting valuation rather than by transfer pricing valuation. Moreover, she discusses the importance of aligning the two disciplines early on in the M&A process to create lasting, value-added synergies. 

This article, "Creating the Bridge Between Transfer Pricing and the Valuation of Intangibles," appeared in the May version of the Quick Read Buzz.  

Assigning Value Is More Than A Number


May 1, 2016

Approximately 80 percent of the businesses filing U.S. federal income tax returns are S corporations, partnerships or limited-liability companies, collectively known as pass-through entities (PTEs). Valuing PTEs is one of the oldest, least resolved and, some would say, most poorly defined issues challenging the business valuation profession.

In this articleEric J. Barr, CPA, Partner-in-Charge of valuation services in the Financial Advisory Services group at Marks Paneth, outlines the crucial matters attorneys need to know about valuing PTEs. 

This article, “Assigning Value is More Than a Number”, was originally published in the May 2016 issue of Metropolitan Corporate Counsel.

Taxing Intangible Assets: A New Global Approach


By Angela Sadang  |  April 28, 2016

In this article, Angela Sadang Director with the firm's Financial Advisory Services group, looks at the OECD’s 2015 final report on all 15 Action Plans, the aim of which was to, “restore confidence in the international tax framework by addressing weaknesses that create opportunities for BEPS”.  After pinpointing the important functions that contribute to the value of the intangible,  the piece goes on to discuss the ways in which to identify the intangibles that make up a particular transaction, as well as a look at five transfer pricing methods the OECD thinks would be appropriate when transferring intangibles, or rights in intangibles.

This article was originally published in Morison KSi's quarterly tax newsletter, Global Tax Insights, Q1 2016. It was reprinted by permission in Global Tax Weekly, April 28, 2016, published by CCH, a Wolters Kluwer business.

Use Caution: Foreign Agents Ahead


April 1, 2016

In a recent case, four multinational corporations and a Japanese trading company paid a combined $1.7 billion in civil and criminal sanctions on their joint bribery scheme to win natural gas construction projects in Nigeria.  Too many companies are unaware that hiring local individuals or entities in a foreign country to help them conduct business may expose them to criminal or civil liability under FCPA.

Sareena Sawhney, Director with the firm's Financial Advisory Services group, examines how third-party compliance with anti-bribery provisions is under scrutiny in a recent article with Metropolitan Corporate Counsel.

This article, “Use Caution: Foreign Agents Ahead”, was originally published in the April 2016 issue of Metropolitan Corporate Counsel.

Valuation and Litigation Briefing, March 2016


March 23, 2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

What's Next? Implications of Proposed IRS Regulations on Family-Owned Entities


By Angela Sadang  |  February 1, 2016

At the American Bar Association’s Section of Taxation meeting in May 2015, Cathy Hughes, Estate and Gift Tax Attorney Advisor with the US Treasury Department’s Office of Tax Policy, indicated that proposed regulations under IRC Section 2704(b)(4) (§2704) concerning restrictions on valuation discounts pertaining to the transfer of family-owned entity interests could be issued by mid-September 2015. As of this writing, no such regulations have been issued, though further informal communication on behalf of the Internal Revenue Service (IRS) suggests that new regulations are forthcoming. Meanwhile, questions and speculations abound. In a recent article, Angela Sadang discusses the implications of these proposed regulations on family-owned entities.

This article, “What's Next? Implications of Proposed IRS Regulations on Family-Owned Entities”, was originally published in the February 2016 issue of Metropolitan Corporate Counsel.

The Dangers of Letting Bribery Go Undetected


January 26, 2016

The US Foreign Corrupt Practices Act (FCPA) includes both anti-bribery and accounting provisions. As detailed in A Resource Guide to the U.S. Foreign Corrupt Practices Act, from the Criminal Division of the Department of Justice (DOJ) and the Enforcement Division of the US Securities and Exchange Commission, the FCPA makes it a crime for American corporations or their subsidiaries to bribe foreign officials to obtain or retain business. 

In this article, Sareena M. Sawhney, director in the Financial Advisory Services group at Marks Paneth, details the ways to avoid an FCPA disaster and the serious consequences that may result if companies do not take necessary precautions. 

Valuation and Litigation Briefing, January 2016


January 18, 2016

Marks Paneth has published its latest issue of Valuation and Litigation Briefing.

Meeting US FATCA Reporting Requirements


December 31, 2015

The Foreign Account Tax Compliance Act (“FATCA”) was enacted with the primary goal of providing the Internal Revenue Service (“IRS”) with the ability to locate US tax evaders hiding assets abroad.  Foreign Financial Institutions (“FFIs”) will now need to conduct the necessary due diligence and meet the necessary documentation requirements in order to help find such US tax avoiders.  Non-compliance can result in the FFI paying a 30% withholding tax on income from US sources. Sareena Sawhney outlines the overall steps an FFI needs to take to maintain FATCA compliance.

This article was originally published in Morison KSi's Global Opportunities Bulletin, December 2015. It was reprinted by permission in Global Tax Weekly, December 31, 2015, published by CCH, a Wolters Kluwer business.

The Dangers of Letting Bribery Go Undetected


December 17, 2015

In 2012, the New York Times reported that Walmart routinely bribed public officials to speed its expansion into Mexico. As a result, executives at Walmart’s headquarters shut down an internal investigation in 2005 in spite of a wealth of evidence that illicit and illegal payments had been made. The company did not report the alleged violations of the Foreign Corrupt Practices Act (FCPA) until November 2011.  In the wake of investor lawsuits and U.S. investigations into its operations, eight executives left.  Walmart increased its compliance staff by more than 30 percent in response to a Department of Justice request to improve its internal controls and compliance programs and has spent more than $430 million on investigations and its compliance program.

Sareena M. Sawhney reviews the anti-bribery and accounting provisions of the FCPA in this article originally published in Corporate Compliance Insights on December 17, 2015.

What to Consider When Using Guideline Transaction Data


October 15, 2015

Income taxes play a major role in the pricing and structure of transactions because income taxes can substantially reduce the seller’s net proceeds and/or lower the net cost of a purchased ownership interest.  Transactions are priced and structured to address these tax consequences.  Failing to properly consider the tax consequences of the entity form of the seller or the decision to buy/sell assets or equity may result in an improper valuation conclusion.  In this article, Eric Barr, partner-in-charge, Valuation Services, discusses the impact of Federal income taxes on transaction prices and terms.  

This article appeared in the September/October 2015 issue of The Value Examiner, published by the National Association of Certified Valuators and Analysts (NACVA).

Valuation and Litigation Briefing, October 2015


October 14, 2015

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Transfer Pricing: A Primer for International New Entrants to the US


October 1, 2015

Regardless of structure and revenue levels, the operations of corporations with related entities across international tax jurisdictions inevitably involve intercompany transactions.  International and local rules and guidelines require that the arm’s length standard must be met in the pricing of intercompany transactions, requiring contemporaneous documentation.  International transfer pricing rules and guidelines are established by the Organisation for Economic Co-operation and Development (OECD) as set forth by the OECD Guidelines, while transfer pricing rules and regulations for the US are established by the US Department of the Treasury, Internal Revenue Service (IRS). 

This article, "Transfer Pricing: A Primer for International New Entrants to the US", was originally published in Morison International's quarterly tax newsletter, Global Tax Insights, Q3 2015. It was reprinted by permission in Global Tax Weekly, October 15, 2015, published by CCH, a Wolters Kluwer business

Developing a Fraud-Free Workplace for the Nonprofit Organization: A Fresh Perspective


By Eric A. Kreuter |  Hope Goldstein  |  September 16, 2015

Fraud is a significant and growing problem for nonprofit organizations, according to a number of sources, occurring more frequently and becoming more costly. According to the 2014 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), nonprofit fraud accounted for 10.8% of total incidents of fraud in 2013, up from 9.6% reported in 2010. Nonprofit organizations lost a median $108,000 per incident in 2013, up from $90,000 reported in 2010. Since many nonprofits are relatively small, the financial impact is often far greater than the dollar amount implies. 

This article by Eric Kreuter, partner, Financial Advisory Services, and Hope Goldstein, partner, Nonprofit and Government, reviews the risks (financial, reputational and funding threats), fraud’s origins and the steps an organization should take to strengthen its control environment.

The Pass-Through Entity Conundrum


September 15, 2015

Entity form affects after-tax economic benefits and thus entity values, and the courts have provided conflicting guidance on how analysts should address the issue when valuing pass-through entities.  Does entity form impact after-tax economic benefits and thus entity value?  If so, why does it, and how much?  And if entity form affects economic benefits, what happens when tax laws or tax rates change?  These questions have vexed business appraisers for years.  This article, by Eric J. Barr, partner-in-charge of Valuation Services, examines how the appraisal community and the courts have addressed such entity form valuation issues. 

This article is reprinted with permission from Valuation Strategies (published by Thomson Reuters), September/October 2015.

Lost Profits: The Reasonable Certainty Standards and the Modern New Business Rule


September 9, 2015

While the vast majority of jurisdictions have moved away from the new business rule and adopted the modern new business rule, by which new/unestablished businesses can recover damages, such adoption does not diminish the requirements under the reasonable certainty standard. Given the lack of historical financial performance data and under the lens of the reasonable certainty standard, estimates of lost profits damages to new/unestablished businesses are subject to a higher level of scrutiny. This article by Josefina V. Tranfa-Abboud, principal, Financial Advisory Services group, focuses on new/unestablished businesses and the importance of post-incident business-specific data/facts to isolate the effects of the disputed event, and to establish a measure of lost profits damages that can be considered reasonably certain.

This article appeared in the September 9, 2015 issue of QuickRead, published by the National Association of Certified Valuators and Analysts (NACVA).

Valuation and Litigation Briefing, August 2015


August 11, 2015

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Finding an Intersection Between Intangibles Valuation and Transfer Pricing


By Angela Sadang  |  July 9, 2015

In the recent boom of cross-border merger and acquisition (M&A) activity, the large proportion of transactions involving intangible assets or intellectual property (IP) as a dominant acquired asset has shed light on the importance of the identification and valuation of intangible assets and transfer pricing.

In this article, director Angela Sadang discusses how aligning these two disciplines early on in the M&A process can create lasting, value-added synergies.

This article, “Finding An Intersection Between Intangibles Valuation and Transfer Pricing in the US”, was originally published in Morison International’s quarterly tax newsletter, Global Tax Insights, Q2 2015.  It was reprinted by permission in Global Tax Weekly, July 9, 2015, published by CCH, a Wolters Kluwer business

Regulators Clamp Down on Casinos for Noncompliance


June 17, 2015

In 2013, the Las Vegas Sands Corp. paid $47 million to the US government for failing to file the necessary activity report (SRC) required by federal law.  This penalty was the result of an investigation by the US Department of Justice into wire transfers and cashiers’ checks totaling $58 million the Las Vegas Sands Corp. received on behalf of one gambler.  This is just one of many examples of US regulators more aggressively brining enforcement actions against casinos and banks for failure to comply with anti-money laundering (AML) rules and regulations.

In her recent article in Gaming Law Review and Economics, Sareena M. Sawhney, director, Financial Advisory Services, provides a detailed analysis of the components of a robust AML program and discusses how organizations can mitigate the risk of exorbitant fines and other penalties brought on by regular enforcement.

This article has been reprinted with permission from Gaming Law Review and Economics, Vol. 19, Issue 5, June 2015, published by Mary Ann Liebert, Inc., New Rochelle, NY.

Health Care Fraud: Are You Prepared to Absorb the Costs?


January 23, 2015

Health care fraud is a national problem affecting everyone in the US, either directly or indirectly.  It is also a growing criminal enterprise.  In Fiscal Year 2012 alone, various government teams involved in the Health Care Fraud and Abuse (“HCFAC”) Program recovered $4.2 billion from individuals and companies who attempted to defraud federal health programs.

This article outlines the schemes carried out by many segments of the health care system, including hospitals, physician practices and individuals, and discusses the various forensic accounting techniques used to identify fraudulent activity or the heightened risk of fraud. 

Originally published in HealthCare Business NewsJanuary 2015 issue.

The Challenge and Responsibility of Protecting Client Data


January 1, 2015

According to an October 2014 Gallup Poll, 69 percent of Americans frequently or occasionally worry about theft of their credit card information.  Other than having a computer or smartphone hacked, the majority of Americans worry about this crime more than any other crime they were asked about.  These worries are driven by the growing wave of hackers that hit major retailers throughout 2014, including Neiman Marcus, Sony, Morgan Stanley, eBay, AOL and others.  As businesses collect more and more information about their customers, and in spite of the concern over theft of this data, few Americans are taking actions to protect themselves.  And businesses, which seem to have ample incentives to protect themselves and have repeatedly been warned about data breaches, routinely ignore such threats for a variety of reasons.

This article, “The Challenge and Responsibility of Protecting Client Data”, was originally published in The Metropolitan Corporate Counsel, January 2015.

Consequences of Having a Poor Anti-Money Laundering Program


April 25, 2014

A surge in recent investigations suggests that financial and non-financial institutions are increasingly in violation of Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) policies and procedures as well as regulatory requirements.  IRS statistics illustrate that the number of money laundering investigations and Bank Secrecy Act investigations has increased from 1,597 to 1,663 and 738 to 923 from 2010 to 2012, respectively. Many different kinds of businesses are at risk for money laundering and for penalties if AML programs do not meet regulatory standards – all the more reason to ensure that adequate anti-money laundering programs are in place.

Health Care Fraud and Abuse


April 25, 2014

Health care fraud is a national problem affecting everyone in the US, either directly or indirectly, and is carried out by many segments of the health care system, including companies or individuals, using various methods.  It is also a growing criminal enterprise:  In Fiscal Year 2012 alone, various government teams involved in the Health Care Fraud and Abuse (“HCFAC”) Program recovered $4.2 billion dollars from individuals and companies who attempted to defraud federal health programs.  And the Justice Department opened 1,131 new criminal health care fraud investigations involving 2,148 potential defendants.  For the health care provider or the insurer or the companies offering health care to their employees, detecting such schemes can involve various forensic accounting techniques.

Managing Intellectual Property In A Knowledge Economy


February 21, 2014

We frequently see new products, brands and creative designs that are the result of continuous innovation and creativity. Many of these innovations are driven by small businesses that possess innovative and creative capacity, but may lack awareness of the protection that our intellectual property system can provide. Left unprotected, an invention or creation may be lost to competitors who are in a better position to commercialize the product or service, leaving the original inventor or creator without financial benefit or reward. Therefore, securing adequate protection of a company’s intellectual property may be a crucial step in deterring potential infringement and in turning ideas into business assets with a real market value.

This article was originally published in The Metropolitan Corporate Counsel, February 2014.

Increased Regulation Drives Demand for Forensic Accounting Services


December 23, 2013

Major financial reforms and volatility following notorious frauds and scandals have led to outsized growth in the demand for forensic accounting services.  During the past decade or so, Congress reacted to the WorldCom Inc. and Enron bankruptcies resulting from fraudulent financial reporting by passing the Sarbanes-Oxley Act of 2002, adding regulation targeting internal controls over financial reporting, among other requirements.  The more recent financial crisis that is blamed for the Great Recession led Congress to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act, requiring greater financial transparency of public companies.  This increased regulation has contributed to strong revenue growth for forensic accounting services providers. 

This article was originally published in The Metropolitan Corporate Counsel, December 2013.