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Partner's Capital: How Much Is Enough?
As more and more professional services firms struggle to find balance in today's turbulent and recovering economy, some are finding the need to focus more attention on the balance sheet as opposed to relying primarily on the income statement to guide management decisions. While the income statement is often viewed as the most important decision-making document available to the management and ownership of a professional services firm, the balance sheet offers critical insights into a firm's ability to weather tough times with financial strength and endurance.
In the context of this article, partner's capital is defined as the amount of tangible owner's equity on the enterprise balance sheet exclusive of the net equity in accrued receivables and work in process (“ARWIP”). There will be more on this key ARWIP aspect later. Working capital is defined as the net difference between the combined total of operating cash and marketable securities, net of short-term, interest-bearing debt and certain trade payables. Working capital is often calculated and evaluated on an accrual basis of accounting, which would include accounts receivable. Using an income tax/modified cash basis of accounting, receivables and most trade payables are not considered as part of the computation of net working capital. Balance sheet leverage is defined as the proportion of interest-bearing debt in relation to ownership equity. An overleveraged or undercapitalized firm has too much debt and not enough owner's equity. This is the primary focus of this article.
The Key Question
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Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.