TELESEMINAR: Understanding Financial Statements for Business Lawyers, Part 2 – A National Perspective
October 17, 2012
12:00 – 1:00 p.m.
1.00 MCLE hours
There are deep interrelationships between financial statements and the documents underlying business deals. Understanding financial reports – cash flow versus income, tax versus accounting books, the quality of earnings and analytical ratios – is essential to both due diligence on a transaction and drafting the operative agreements. Without a confident understanding of balance sheets and income statements, an attorney cannot help ensure that a client is getting the benefit of his or her economic bargain. This two-part program will provide you with a practical guide to financial statements and how they specifically relate to, and sometimes create traps in, major and routine business transactions, including business mergers, commercial borrowing, and the sale of business ownership interests. Part 2 of 2.
- Understanding ratio analysis in financial statements
- Spotting red flags in balance sheets and income statements
- Quality of earnings and how that impacts financing a deal and structuring earnouts
- How do you better protect investors and parties to a deal
- Building regular valuations into business documents
- Working with auditors & understanding audit standards
C. Travis Webb, BKD, LLP, Denver