Private equity and venture capital firms of all sizes have continued to show a growing interest in middle market companies. An effective strategy in dealing with complex activities involved in the mergers and acquisitions (M&A) process is essential. With over 95 years of experience serving middle market companies, Anchin specializes in responding to the individual needs of private equity firms and portfolio companies. We know where the issues are and the importance of having a dedicated team by your side every step of the way. Our single-office firm allows for efficient access to all of our resources, enabling us to deliver consistently superior work to our clients in a timely manner. Our team of experienced professionals provides in-depth industry knowledge while recognizing that each transaction is unique.
The members of Anchin’s Private Equity Industry Group understand the complications involved in transitioning a newly acquired company to a professionally managed organization. Understanding your investment strategy and knowing your company and team members is one of our specialties. Our team has the pertinent skills and expertise to help you succeed.
Anchin’s Private Equity Industry Group’s expertise extends to many industries, including:
- Food and beverage
- Public relations and advertising
- Construction, architecture and engineering
- Services, transportation and logistics
- Consumer products
- Manufacturing and distribution
- Real estate
- Financial services
- Audit and accounting services
- Business valuations
- Closing/Opening balance sheet audits and net working capital (NWC) review
- Employee benefit plan audits
- Common stock valuations for 409A purposes
- Evaluation of historical and projected cash flows
- Tax, financial, and accounting due diligence
- IT assessment and consulting
- IPO readiness
- Tax services including the implementation of risk management and corporate governance best practices along with timely schedule K-1 delivery
- Purchase price allocation, impairment analyses, and purchase price disputes
- Tax attribute preservation
- Tax planning and structuring
- General advice on accounting for M&A transaction
- Quality of earnings evaluation
- The Private Equity Secondary Market – Has COVID-19 Created a New Buying Opportunity?December 10, 2020
The typical way to invest in private equity is by investing when a fund initially raises capital. However, it is also possible to invest by taking over the position of an existing investor by purchasing the position on a secondary market. Under the right conditions, there can be significant advantages to investing through the secondary market - and the COVID-19 crisis may have created such an opportunity.
- The SBA Issues PPP Loan Necessity Questionnaires for Loans of $2 Million or Greater for CommentNovember 10, 2020
On October 26, 2020, the Small Business Administration (SBA) announced in the Federal Register two new forms: Form 3509, PPP Loan Necessity Questionnaire (For-Profit Borrowers), and Form 3510, Loan Necessity Questionnaire (Non-Profit Borrowers). Although these forms have not been widely distributed, the SBA is accepting public comment on them through November 25, 2020.
- Paycheck Protection Program (PPP) Loan Forgiveness – A Focus on Calculating FTEs September 29, 2020
Many Borrowers are still in the process of gathering payroll data, health and retirement costs, rent, utilities and mortgage interest costs so that they can file their PPP Loan Forgiveness Application. Although there may be many questions on various facets of how to calculate eligible payroll and non-payroll costs, the focus of this Alert is on the definition of average Full-Time Equivalent (“FTE”) Employees and how this is calculated.
- Considering the Benefits of ESG Investing for Both Your Financial Plan and Worthy CausesSeptember 25, 2020
Environment, Social and Governance (ESG) investing is a way to evaluate how a company’s practices in these areas may impact its stock return potential.
- The NY Shield Act: It’s Time to Take Things SeriouslySeptember 16, 2020
Effective as of March 21, 2020, New York enacted one of the most aggressive state data breach notification laws in the United States, the “Stop Hacks and Improve Electronic Data Security" (SHIELD) Act. This law applies to any person or business (even those operating outside of New York) that collects and maintains New York residents’ “private information.”
- Ins and Outs of Tax-Loss HarvestingSeptember 14, 2020
Tax-loss harvesting isn’t new, but robo-advisors have brought more awareness of the concept in recent years. New portfolio management tools are also helping automate the process further, making it easier for advisors to exercise ever-more-sophisticated strategies.
- Social Security Tax Deferral Raises Questions and ConcernsSeptember 8, 2020
In our previous communication, we wrote about President Trump’s executive order allowing a deferral of the employee’s portion of FICA or social security tax (6.2% of wages). The Treasury just released Notice 2020-65 providing some additional guidance on the topic. Unfortunately, many questions remain unanswered.
- How the New Interim Final Rule May Impact Your PPP Loan ForgivenessAugust 26, 2020
This week, the SBA issued a new Interim Final Rule (IFR) on the Treatment of Owners and Certain Nonpayroll Costs that greatly impacts many PPP borrowers.
- What do the Proposed Carried Interest Regulations Mean for You? August 20, 2020
On July 31, 2020, the Internal Revenue Service (IRS) released proposed regulations (the Proposed Regulations) relating to the scope and applicability of Internal Revenue Code Section 1061. This alert will provide an overview of the Proposed Regulations and how they may affect hedge, private equity and other investment funds.
- The Delaware Supreme Court’s Clarification of Limited Partner Rights to Books and Records, and What It Means for YouAugust 12, 2020
In a recent ruling on the case of Murfey v. WHC Ventures, LLC, the Delaware Supreme Court concluded that a limited partner seeking the books and records of a Delaware limited partnership is not required to show that the materials requested are “necessary and essential” unless those terms are expressly stated in the limited partnership agreement.
- Credit managers to exploit market dislocations - firms raising capital and preparing to pounce on opportunities they see in distressed sectorsJuly 13, 2020
"We have a health crisis and an economic crisis and they go hand in hand... It's hard to predict where the markets are going to end up," said Olamide "Lami" Ajibesin.
- Cerberus Exits Albertsons via Discounted IPOJune 29, 2020
A reduced price for supermarket giant Albertsons Companies Inc. (ACI) by Cerberus Capital Management LP got the initial public offering from the supermarket giant to the finish line on Friday, June 26.
Cerberus sold all 50 million shares in the IPO for the Boise, Idaho supermarket chain for $800 million in proceeds, about seven years after the New York private equity firm acquired the company.
- Seeing Around Corners: Positioning Your Business For A Post-Lockdown Environment June 11, 2020
Managing Partner Russell B. Shinsky shares what considerations business leaders should make as the economy gradually begins to reopen.
- Guidance on Cyber Threats to Private Equity and Hedge FundsJune 8, 2020
As the corporate world is evolving and becoming more accepting of working remotely, every company is facing the increased threat of cybercrimes. In 2019, the average cost of a data breach in the U.S. was more than $8 million, and the average time spent to identify and contain a breach was around 245 days. These numbers will continue to grow as cyber criminals become even more sophisticated.
- Is There Opportunity for Private Equity and Hedge Funds on the Horizon?May 21, 2020
The COVID-19 crisis has devastated the national economy. Tens of millions of Americans have lost their jobs and the stock market has fallen significantly. However, these brutal market conditions may have created an opportunity for private equity funds and hedge funds.
- Important PPP Loan Update: FAQ #46 Safe Harbor Guidance on Economic Uncertainty CertificationsMay 13, 2020
Additional guidance has been released related to how borrowers' certification of necessity for Paycheck Protection Program (PPP) loans will be evaluated by the Treasury. This topic has caused concern among borrowers since additional restrictions and conditions have been placed on PPP loans throughout the application and borrowing process. Here is some key information to assist you.
- Hunting Private Equity Opportunities In Stressed TimesMay 12, 2020
“There will be a lot of distressed assets coming up for sale,” Olamide "Lami" Ajibesin, who leads transaction advisory for Anchin, a public accounting firm in North America, said. She advises private and public clients on M&A and PE transactions (including secondaries) and strategic investments in energy (E&P/oil and gas, power), consumer products, industrials, financial services and technology, among other industries.
- How Blackstone Will Get Troubled Assets 'To the Other Side'April 29, 2020
Blackstone Group is using the new private equity playbook for sectors such as hospitality, retail, and entertainment hit hard by the coronavirus pandemic market –assessing damage and sorting through ways to get portfolio companies “to the other side.”
- Hedge Funds and Private Equity Firms Deemed Ineligible for PPP Loans by SBAApril 27, 2020
The same day that legislation (April 24th) increasing funding by $310 billion for the Paycheck Protection Program (“PPP”) was signed into law, the Treasury Department issued a new Interim Final Rule. This Final Rule clarified certain types of businesses that are eligible for PPP loans. Specifically, the Treasury has determined that hedge funds and private equity firms are ineligible businesses for purposes of PPP.
- Important Reminder – Update Your Calendar For New Tax DatesApril 14, 2020
The COVID-19 pandemic has changed so much about our personal and financial lives. One item to keep in mind is that the Internal Revenue Service, along with most states, have changed the due date for filing income tax returns and paying your balances for 2019, as well as your 1st and 2nd quarter estimated tax payments for 2020.
- SEC Considers Opening Private Equity to Main Street Investors. Good Idea?December 3, 2019
Private equity has been one of the top performing asset classes over the past decade. However, due to current regulations, the typical American investor hasn’t been able to participate in these gains. That could change soon. Earlier this year, the SEC asked for public comment about whether it should open private equity investments to retail investors. Here are some of the pros and cons of the agency doing so.
- Financial and Other Considerations When Starting a Private Equity or Venture Capital FundMay 9, 2019
Getting a private equity or venture capital fund off the ground takes more than a successful investment strategy. From the outset, you need to consider and plan for the lifespan of the fund, from concept to realization and eventual liquidation. These funds are far more complex and require significantly more financial planning than a typical long-short equity fund.
- Qualified Small Business Stock: A Gem for Investors and a Marketing Tool for EntrepreneursFebruary 27, 2019
In this day and age, investors (Venture Capitalists, Private Equity, and Angel Investors) are concerned about maximizing their internal rate of return (IRR). Maximization of this important metric cannot be accomplished without minimizing the potential tax leakage of an investment. The reduction of the corporate tax rate to 21% in conjunction with the tax benefits provided by Internal Revenue Code (IRC) §1202 can be used to achieve this goal.
- Finally Some Digestible Meal and Entertainment GuidanceOctober 3, 2018
On October 3rd, the Internal Revenue Service released Notice 2018-76 providing transitional guidance on how the Tax Cuts & Jobs Act changes to the deductibility of Entertainment expense affects the 50% deductibility of business Meals that taxpayers and professionals had been hungering for. While the guidance is transitional, it provides clarity on some of the issues we had previously provided comments on:
- In Today’s Food And Beverage Industry, Investment Rules Are Getting StaleAugust 29, 2018
Greg Wank, Leader of Anchin's Food and Beverage Industry Practice, on the changing rules of food and beverage industry investment.
- Cybersecurity for Investment Partnerships, Private Equity and Real Estate Funds - Responding to a Growing ThreatJuly 30, 2018
Investment partnerships, private equity and real estate funds are tempting targets for cybercriminals thanks to their financial assets, sensitive customer information, and access to institutional counterparts. And the threat is growing quickly. Recent studies report that fifty five percent of limited partners in private equity funds expect a serious cyberattack on their firms within the next five years. How can you keep your fund safe? Let’s take a look at the current threats and latest recommendations from the SEC.
- Anchin offers analysis of the 2017 Tax Cuts and Jobs Act in relation to the value of equity interestsJune 21, 2018
Hedgeweek highlights our analysis of how the 2017 Tax Cuts and Jobs Act will impact the value of equity interests, and why the potential impact could be very different than what many experts expect.
- Did the Tax Cuts and Jobs Act of 2017 Increase the Value of Equity Interests?May 22, 2018
At first glance, a business or equity owner might conclude that the Tax Cuts and Jobs Act of 2017 (the “Act”) increased the value of equity interests by 20% upon its signing by the President. By cutting corporate level taxes, the value of any business would, on the surface, immediately rise. However, the answer is not so straightforward.
- Impact of the Recent Tax Reform on the Private Equity IndustryMay 15, 2018
The Tax Cuts and Jobs Act (the “Tax Act”), which was signed into law on December 22, enacted a broad range of changes with most provisions taking effect for tax years beginning after December 31, 2017. This alert summarizes some of the key (federal) tax provisions of the Tax Act affecting the private equity industry.
- Tax Cuts and Jobs Act Substantially Limits Meals and Entertainment DeductionFebruary 14, 2018
The 2017 Tax Cuts and Jobs Act introduced some significant limitations to the meals and entertainment deduction. The new law makes two major changes to the meals and entertainment rules, which can impact your business.
- The big question about the Dr Pepper Snapple-Keurig merger—why?January 31, 2018
Greg Wank, Leader of Anchin's Food and Beverage Industry Practice, says Dr. Pepper needs to diversify its product offerings to keep up with consumer tastes.
- Tax Cuts and Jobs Act: Key provisions affecting Hedge Funds, Private Equity Funds and Other Investment Funds or Fund VehiclesJanuary 17, 2018
The Tax Cuts and Jobs Act (the “Tax Act”), which was signed into law on December 22, 2017, enacts a broad range of changes with most provisions taking effect for tax years beginning after December 31, 2017. This alert summarizes some of the key (federal) tax provisions of the Tax Act affecting managers of hedge funds, private equity funds and other investment funds or fund vehicles.
- COVID-19 Update Center
The Anchin COVID-19 Update Center is available to simplify your access to critical financial information. It is updated regularly to supplement your communications with your
- How Does Tax Reform Impact You?
6 Recent Tax Law Changes That Technology Companies Need to Know07/25/2019 Automatic Extension Available for Making Portability Election1/31/2019 What Should Businesses Know About Qualified Opportunity Zones?1/15/2019 How Can
- Lami Ajibesin, Managing Director of Anchin's Transaction Advisory PracticeMay 13, 2020
Lami Ajibesin describes the full-service transaction advisory work her group performs for financial sponsors and strategic investors.