The NorthView Compass
Happy Spring to our Compass readers,
Last month was full of the sound of squeaking basketball shoes, the smell of freshly cut grass, the taste of…pollen unfortunately, and apparently an Austin Powers situation in the Suez Canal. March Madness indeed.
Compared to the last few quarters, we’ve seen a notable increase in activity as companies consider their options both from a financing and M&A perspective. Middle Market capital that has been, for the most part, on the sidelines waiting for planning decisions from companies, has indicated to us that they are still very eager to put their dry powder to work. Likewise, buyer interest of Middle Market companies remains as strong as ever.
Thank you to all of you who continue to share this newsletter with your network and welcome to all newcomers. Our goal with the NorthView Compass is to provide monthly, relevant information for owners and executives of companies, their advisors, and investors to consider as part of the broader financial strategy for their business. Hopefully the content in this and other future and past editions add value to your situation.
About NorthView Advisors
NorthView Advisors is a full-service, lower-middle market focused, investment bank that prides itself in establishing and maintaining meaningful, personal relationships with its clients and investors.
The Latest: PPP Forgiveness
PPP updates and changes have come about from a myriad of various sources recently, and keeping up to date can be difficult as a result. Between the Economic Aid Act, Consolidated Appropriations Act, American Rescue Plan Act, and new guidance issued by the SBA it’s hard to see the big-picture through all the noise. To help gain some clarity, this overview of FAQs, and related resources, lays out the biggest changes and what they mean for both you and your business.
FAQs on New PPP Forgiveness Rules – Fredrikson & Byron
Beyond the federal level where forgiven PPP loans are exempt from federal income taxation, treatment of PPP loans at the state level can vary significantly. Depending on your state, your forgiven loan may be included as taxable income. Or you may not be able to deduct expenses paid for using forgiven loans. In some states, you may face a combination of both of these. These differences stem from whether states use rolling conformity or static conformity to adjust their tax code based upon changes to the Internal Revenue Code.
Nearly Half the States are Taxing Companies Over PPP Loans that have Been Forgiven – MarketWatch
A dedicated resource for M&A news, announcements, and insights
When considering how to drive enterprise value today, it’s helpful to begin by taking a step back and evaluating the broader landscape within which your business operates. This deep-dive on value creation illustrates both the primary components of that landscape and how they interact, as well as how businesses should implement the principles in their operations. By doing so, business leaders will enable their organizations to seize new opportunities and avoid deep pitfalls along the way.
A CEO Guide to Today’s Value Creation Ecosystem – Strategy & Business
With the highest deal total in February since the 1970s, M&A continues at a blistering pace in 2021. As pent-up demand stemming from 2020 continues to drive activity, 2021 looks to remain a busy year for M&A.
Global Deal Making soars to almost $700 Billion so far this Year – MarketWatch
Preparation is key, as it is with several things in life, including when considering selling your business. Beginning to think about and plan for a sale early helps ensure a smooth and successful process. Here are a few helpful tips regardless of whether you’re considering a sale now or years down the road.
5 Things Every Business Owner Needs to Know Before Selling Their Business – Charlotte Business Journal
A dedicated resource of curated content for CFOs
The International Accounting Standards Board introduced a new proposal extending rent concessions for an additional year to continue helping lessees deal with the effects of the pandemic. These changes could significantly affect balance sheets, especially for companies with many leased items.
Proposed Extension for IFRS 16: How COVID-19 is Still Impacting Lease Accounting Standards – FEI
In a survey of over 1,000 financial executives, EY found that just 47% of CFOs feel confident their capital allocation process meets their goals. With the “once-in-a-generation shock” 2020 provided, the vast majority of CFOs dealt with planned projects which weren’t able to be funded. Now they’re looking to rethink their priorities and processes going forward.
CFOs See Need to Overhaul Capital Strategy Amid Pandemic ‘Shock,’ EY Says – CFO Dive
Other Recommended Reads
Order & Chaos: The Trickiest Parts of Taxes this Season – Accounting Today
Brighter Outlook a Year Into COVID-19 Eases Default Risks Across US Industries – S&P Global
Midsize Companies Shouldn’t Confuse Growth with Scaling – Harvard Business Review
Loan Defaults Fall Below 4%, Lowest Level Since June 2020 – Fitch
How’d your bracket fare?
Our brackets turned into paper basketballs before the first round ended in traditional March Madness fashion after some great Cinderella runs. Sister Jean surprised us with her scouting insight and UCLA made the run of the tournament. Stopping that run clearly took a lot out of Gonzaga, and Baylor was just too much for them in the Championship Game.
Now that the tournament has wound down, we turn to arguably the best sports month of the year for us here in Georgia. Time to get ready for baseball and The Masters!
Check out this Masters primer to try your hand at picking a winner again. Will Spieth keep up the momentum from his win in Houston? Can Rory finally grab the elusive Green Jacket? Or will DJ do the unimaginable and win two within the span of five months? We have no idea, but can’t wait to find out!