BC Journal

#Finterms: Required Minimum Distribution (RMD)

A Required Minimum Distribution (RMD) is the amount of money that you must withdrawal from your Qualified Retirement Accounts every year, beginning in the year that you turn 72. 

Qualified accounts to be included in the RMD calculations are IRAs, 401(k) plans, 403(b) plans, 457 plans, profit sharing plans and qualified defined contribution plans. 

Note: Roth IRAs and Roth 401(k)s are not included in RMD calculations.

The amount of the distribution changes annually, as it is calculated by dividing the balance of all your tax deferred assets as of December 31st of the previous year, by an age-based factor determined by the IRS. 

There are some special situations that allow you to defer certain RMDs, but generally they must be taken at the mandated time or you risk paying a penalty equal to 50% of the amount that should have been taken.

#finterms #finance #retirement #RMD #qualifiedinvestments

#Finterms: Business Valuation

A business valuation, also referred to as a business appraisal, is an analysis designed to determine the worth of a company or operating unit. Business valuations can be used for a variety of strategic (e.g. determining value for sale/merger, benchmarking growth ) and formal (e.g. estate and gift planning, executive compensation planning) planning purposes.

Depending on its purpose, a business valuation can present a range of likely values or deliver a more precise conclusion of value. There are various approaches and premises that can be employed when performing a valuation depending on underlying objective. In any instance, a full understanding of a business, how it operates and the risk associated with it is needed to determine the economic value of a business.

#finterms #valuation #appraisal #business #benchmarking #planning

Quick Look-in at 2Q22 US Transaction Activity

With the recent volatility in the public markets and the macroeconomic backdrop changing rapidly, we thought we would quickly revisit the resulting implications to the M&A environment.

As widely documented, the last several years have represented a vibrant deal making setting, notwithstanding the impact of the Covid-19. Similar to real estate, it has been a seller’s market with a great deal of capital chasing quality assets. 2022 has seen a confluence of new factors, including rising interest rates, tight labor, supply chain challenges and the war in Ukraine, that have shifted confidence levels and have introduced new operational and financial challenges into the fray. That said, strategic consolidators and private equity alike continue to look for investment opportunities capable of supporting the strategic imperative to “win” over the long-term.

Spring Cleaning

Spring is in the Air . . .

Spring has arrived along with the warmer weather.  Spring is the perfect time to make that check list of To Do’s. Below is a list of reminders for small business owners’.  It’s the little things we sometimes miss that can have an impact on our businesses. We hope that you find these reminders helpful.