Consulting

Grassi & Co. offers accounting and business consulting services for the Consulting industry throughout the New York Metro area, including NYC, New Jersey, Long Island, Connecticut, and Pennsylvania. Read our Consulting blog posts to learn more about Consulting accounting in New York.

Are Mission, Vision, Value Statements (MVVS) and Incentive Plans Right for Your Organization?

Most privately held small to medium sized family-owned businesses operate in a secretive environment, keeping communication about the business’ direction and success within the family and a very small group of key people.  Business owners fail to realize that outside of the customer list, their team is its greatest asset. In these environments, the team is often kept in the dark with respect to company successes and its Mission, Vision and Values. Most small to medium privately held businesses do not have a formal-documented (MVVS).   The team sees the business owner(s) as the ones who need to supply all of the answers because the team has not been privy to the goals and future focus of the company.  The lack of a clearly communicated MVVS leaves the team without direction—they simply follow a leader instead of assisting in achieving a goal.  The mentality most likely comes from the belief that they or a previous family member started the business and therefore, know what is best for the business.  These companies typically have a comfortable work environment and a content team, because they believe the owner is loyal to his/her people and their job security is good. Content typically does not result in a passionate and engaged team, focused on moving the company to the next level or watching for market changes that might prove damaging to the company.  Relying solely on the owner to make certain that the business stays relevant is both risky and challenging—the team must be engaged and empowered to ensure maximum success. Valuable information can be obtained when team members are given the opportunity to...

Top Five Issues When Valuing a Business in Divorce

Divorce is a big issue in today’s ever changing economy.  According to the national center for health statistics, as of 2014 in the United States there were 2,140,270 marriages, however, on average 50% of marriages end in divorce.  Divorces can typically be complicated, but even more so when a business is involved.  Below are five issues that business valuators consider when valuing a business for a matrimonial action. 1. Standard of Value In all tax business valuations and many other “non-divorce” valuations, the standard of value utilized is fair market value—which is defined in the International Business Valuation Glossary as “the price at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.” Fair market value is based on an actual transaction.  In a divorce there is generally not an impending sale or transaction of a business interest.  Even when there is a transaction it generally is not similar to that of a hypothetical willing buyer or hypothetical willing seller because the buyer and seller are known and there are often (significant) emotions involved in a divorce-related transaction. Recognizing the difference between the fair market value situation and the divorce situation, many states have decided by statute or precedent to use a different standard of value for divorce cases.  In New York, for example, where the appropriate standard of value is fair value—which is defined as fair market value without discounts,...

Tax Code Section 2704

Section 2704 was enacted in 1990 as part of Chapter 14 with the aim of limiting discounts for certain family partnerships or limited liability company interests that are transferred to family members and to prevent strategies that were being used to artificially lower estate and gift tax liability. Under the new proposed guidance tax code, Section 2704 was intended to curb abuses in which valuation discounts were being used solely to avoid paying estate tax on transfers of interests in closely held businesses.  The rules imposed by the IRS have generated strong protests from family business owners, practitioners and lawmakers, who say they are too broad.  The IRS has currently received over 10,000 comment letters on the proposed regulations—all of which need to be reviewed and digested before any decision can be made.  Therefore, the futures of the regulations are tied to two critical areas: (i) what happens to the rules themselves? and (ii) what happens to the estate tax as a whole? One of President Trump’s core campaign promises was to repeal the estate tax, which would essentially make Section 2704 unnecessary.  Many believe that if there is no estate tax, then a business valuation is not needed, however, what people may not be aware of is if estate tax is eliminated President Trump is proposing a tax on capital appreciation in its place.  If this is put into effect then the proposed Section 2704 regulations are pertinent in determining fair market value of a business in order to calculate estate tax. During his campaign, Trump proposed eliminating the death tax and in its place taxing the capital...

Grassi & Co.’s M&D CEO Share Forum Roundtable – 3/5/13

Grassi & Co.’s 2013 CEO Share Forum, presented by our M&D Practice, was held on Tuesday evening, March 5th at Jewel Restaurant in Melville NY.  The event started off with a short cocktail reception, followed by dinner and an informal discussion on current economic conditions and doing business internationally.  The guest speakers included Phil Guarco, JPMorgan Chase’s Chief Investment Strategist for Latin America and Steve Tiffen, President & CEO of The Tiffen Company.   To learn more about the event, view event photos, and read speaker biographies, please click here.   To view the presentation by guest speaker Phil Guarco, please access the link provided below: CEO Share Forum Roundtable – Mar...

Healthcare Executive Roundtable: Continuous Compliance – 2/27/13

The Grassi & Co. Healthcare Practice held their monthly Executive Rountable Discussion on Wednesday, February 27, 2013 presented by Alfonso A. Conti, MPA of Grassi & Co. and Claudia Hinrichsen, Esq. of The Health Law Partners.  The topic of the February discussion topic was Continuous Compliance: An Operational Approach Must Address HIPAA.   The discussion provided a guide for organizations on the maintenance of an effective compliance program throughout the year in accordance with published guidelines.  It highlighted: The priorities of an effective compliance program A step by step action plan on what an organization should be doing during the year The role governance must play in the compliance program OIG’s and OMIG’s expectations of an organization and its compliance program The formulation of a work plan and what goes into it Organizational structure of a compliance committee To view the presentation, please access the following link: Continuous Complaince: An Operational Approach Must Address HIPAA...