June, 2015

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Here’s what business valuation pros didn’t learn in school

Abrigo

Chances are, most business valuation professionals took accounting, finance or economic classes in college – courses that focused on areas to provide them general competency in their jobs today. It’s less likely that many of these valuation professionals took marketing classes , especially not one that incorporated the seismic shifts that have occurred in our digitally connected economy over the last decade.

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Can banks have an impact on alleviating the egg shortage?

Abrigo

If you’re craving an omelet the next time you sit down at your favorite restaurant, you may need to reconsider your order. If eggs are even on the menu at your local haunt, your dish may carry a higher price tag than the last time you dined out. The egg shortage , brought about by a bird flu virus that wiped out nearly 50 million chickens (and turkeys) on commercial farms earlier this year, has left all parties – from the farmer to restaurateur and the consumer – impacted.

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Happiness and firm efficiency

Abrigo

Over the past ten years, technological advances have made communications and on-demand services almost necessary for profitably relating to the world. Ultimately, goods and services have become highly customizable, and value propositions are tailored to the individual. These trends are not simply occurring within the consumer marketplace, but also in the way an employee views and relates to this or her employer.

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June and July: The months of accounting conferences

Abrigo

June and July have notoriously been the months that most firms use to attend accounting industry conferences. Though June is coming to a close, it is not too late to think through how your firm may be able to benefit from this time out of the office and away from clients. Above all, conferences will serve your firm by providing insight into your existing and potential service offerings and by opening up many networking opportunities for you and others from the firm.

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Video: Introduction to Business Valuation by Aswath Damodaran

Abrigo

Aswath Damodaran is a business valuation expert and professor of Finance at NYU Stern School of Business. In this video, he reviews the importance of valuation and offers 3 main reasons why valuations fail—bias, uncertainty, and complexity. Damodaran presents the importance of being aware of the subjective nature of valuation and he discusses how valuation is simple, but we make it complex.

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NCUA proposed rule: MBL flexibility for credit unions?

Abrigo

On June 18th, the board of the National Credit Union Administration (NCUA) unanimously approved five items , including a proposed rule aimed at modernizing member business lending (MBL). The rule would provide greater flexibility and autonomy for credit unions to better meet the needs of their members. Small business lending at credit unions has continued to increase over the last several years.

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How to stress test your ag portfolio

Abrigo

According to recent data, lenders are seeing elevated agricultural loan demand largely as a result of tighter profit margins among producers. The report, from the Federal Reserve Bank of Kansas City , stated that demand could remain high since futures markets for fall crops show prices are likely to remain low because of the potential for another record harvest.

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Building your valuation practice? Know your marketing message.

Abrigo

Marketing your valuation business is more important than ever. With the rise of social media and other new communication techniques, industries that may have once been considered “traditional” must seek new ways to engage potential clients and to reengage existing clients. While many business professionals can still keep their companies afloat with a smile and a handshake, there is no doubt that the world has changed and will continue to do so.

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Non-performing ag loans increase, says lender survey

Abrigo

Agricultural lenders are reporting increases in non-performing farms loans and decreased farmland values, according to the latest Agricultural Lender Survey conducted by the Kansas State University Department of Agricultural Economics. Lenders reported that over the past three months, total farm dollar volume rose and is expected to increase in the short- and long-term for all categories.

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Understanding commingled entities through global analysis

Abrigo

The main philosophy behind a global cash flow (GCF) is to spread all parts of a relationship (people, businesses and related real estate) to measure their financial health and cash flow individually, then collectively on a “global” level. The important take-away here is to try and view individuals, businesses and their real estate as a holistic, singular “net” cash flow from which the bank or credit union can determine the borrowers’ ability to pay debts.

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Summer goals: Improve your audit planning

Abrigo

Memorial Day unofficially kicked off summer, a time of year that often prompts auditors to begin reflection on what type of accounting firm they want to be. Whether you went on vacation with friends or family for the long holiday or continued to work away in the office, your mind has likely been running to ways you can improve your accounting firm by implementing practices that will increase efficiency for the inevitable audit season.

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The benefits of building a relationship with your bank examiner

Abrigo

In a recent Forbes article, Frank Sorrentino, Chairman and CEO of ConnectOne Bank, offered his take on how financial institutions should flip their mindset on regulators and examinations. The piece, titled “Why Banks Should Stop Fighting and Learn To Love Regulators,” suggests that while institutions of all sizes are grappling with increased scrutiny and regulation, the reality is that it is here to stay following the financial crisis.

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Credit unions continue to see growth in auto lending

Abrigo

For more than 30 years, the number one vehicle in America by sales is the Ford F-series line of trucks. More than three-quarters of a million were sold in 2014, continuing its reign as the top vehicle since 1981. The Toyota Camry, the first car on the 2014 list, ranked fourth overall with more than 428,000 new to the road. The top-selling SUV, the Honda CR-V, came in eighth among the most popular vehicles, according to automotive site Good Car Bad Car.

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More banks predict larger impact from CECL model

Abrigo

The attention on the FASB’s current expected credit loss (CECL) model has only increased in recent months, as the industry braces for the release of final guidance before the end of 2015. The CECL model will require banks and credit unions to consider expected losses rather than incurred losses. As a result, ALLL levels are expected to rise and institutions will face a one-time capital adjustment once guidance is effective.

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Survey: 88 percent of people still favor an in-person banking experience

Abrigo

In late December, CNBC took a peek inside the bank branch of the future. The piece looks at one possibility – a faceless branch, where avatars take the place of tellers. CNBC said in the article, “Community-level banking, particularly from large institutions, will become more cost efficient and less personal.”. But is this what bank and credit union customers want?