Do Millennials Pose a Retention Risk?
According to GAO, it’s reasonable for agencies to consider it in evaluating quotes. The topic of millennials in the workforce is no stranger to anyone in the working world. A plethora of articles, blogs, reports, polls, and studies have been devoted to the subject. Companies and a countless other number of people (including millennials) have debated the subject for years, and will likely continue to do so. This is especially true when it comes to how quickly (whether perceived or . . . Read More
Cybersecurity Update
Last month many of you listened to the webinar Jon Williams and I did regarding the December 31, 2017, deadline to comply with the Department of Defense (DoD) Federal Acquisition Regulation Supplement (DFARS) 252.204-7012 and how to implement the security controls set forth in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171. Now that the deadline has passed and we’ve entered into a new era of being compliant with the rules, we thought it would be a . . . Read More
New Tax Bill: Areas of Interest for Small Businesses
The Tax Cuts and Jobs Act of 2017 (the “Act”) provides the most comprehensive tax reform in more than three decades. Small and medium business owners will find that the Act reduces their total taxes both on an entity and an individual level, while also creating tax incentives to spend on capital expenditures through accelerated depreciation of both used and new property. Here are some highlights from the Act. Tax Rates on C Corporations and Pass-Through Entities The change in . . . Read More
Borrowing Under the SBA’s 7(a) Lending Program: Three Factors to Bear in Mind
As an entrepreneur or a small business owner, you know that access to capital is a crucial component in both the setting up and growing of your business. Capital is necessary at every stage, for example, enabling your business to order goods before you expect to be paid, paying for accumulating overhead costs, investing in client development and marketing, etc. — having access to capital is the lifeline for your business. However, entrepreneurs and small business owners often find that it . . . Read More
A Quick Guide to Phantom Stock and Stock Appreciation Rights
In the government contracting world, companies are often reluctant to create true equity incentive plans, such as options and restricted stock units. Small businesses have valid reasons for hesitating to offer equity to new individuals, such as a lack of familiarity with the person, an interest in retaining as much ownership as possible in the event that an equity transaction is necessary in the future, and the SBA’s rules on ownership, control, and affiliation, including the so-called “Present Effect Rule.” . . . Read More
Plan Your Success – the LOI
By Dana Livne During our April 26, 2017 webinar, we discussed Letters of Intent (LOI) and the important role they can play in transactions. The LOI often serves as a roadmap or initial term sheet between a buyer and seller. The LOI is generally “non-binding”, meaning that the parties may deviate from its terms. The purchase price, due diligence process milestones, and financing terms are examples of non-binding provisions that may be subject to negotiation as the deal progresses. . . . Read More
Earn-Outs in M&A Transactions: Red Flag Issues that Government Contractors Should Avoid
By Michael A. de Gennaro Government contractors who wish to grow by purchasing an existing business are aware of one simple truth: The value of the target is linked directly to its ability to transfer its existing contracts. If there is a high risk profile—for example, if assets of the target are subject to novation in connection with the acquisition—then a purchaser is likely to seek either a downward adjustment in the purchase price or to propose deferred compensation, such . . . Read More
Get a Handle on Changing Leave Laws
Picking up work across states can be challenging for any employer, particularly with respect to employment law, and it’s not getting any easier. Recently, a number of states and localities are proposing and passing sick and family leave laws, each with differences, making it challenging for employers to comply with and pay for the additional benefit. States are motivated by the federal government’s failure to address paid sick and family leave broadly at the federal level. As a result, states . . . Read More
4th Circuit Sets Forth Test for Determining What Constitutes “Joint Employer” for FLSA Purposes
In a pair of recent cases, the U.S. Court of Appeals for the 4th Circuit (which hears appeals from the federal courts of Maryland, Virginia, West Virginia, North Carolina and South Carolina) has set forth what will hereafter be the applicable test in those jurisdictions when determining whether two or more entities constitute “joint employers” for purposes of the Fair Labor Standards Act (“FLSA” or “the Act”). The FLSA, 29 U.S.C. §§ 201, et seq., requires employers covered by the Act . . . Read More
Small Business Valuation — What Is It And Why Does It Matter?
By Michael A. de Gennaro Government contractors who have built successful businesses over a period of time often neglect to answer one simple question until very late in the game. The question, “What is my business worth?” has far-reaching implications and comes up in a number of scenarios, such as the sale of the contractor’s business, the creation of long-term incentive plans for employees, estate/business succession planning, and death/divorce of an owner. At least monthly, we receive a call from . . . Read More