Waypoints: Ideas and Insights to Navigate Enterprise Complexity

During the past year, the HORNE PMM team has written about many of the challenges that companies in the public and middle market face. We've tried to provide straightforward, practical information that you can use immediately. Sometimes we examine the macro environment and sometimes we discuss the details. We always strive to make it relevant to your situation.

As businesses were preparing to implement the Department of Labor's new overtime rule, a federal judge granted a preliminary injunction delaying its implementation. The injunction came just over a week before the initial implementation deadline of Dec. 1, and left companies uncertain about the best course of action.

Developing a cybersecurity strategy can give your organization the foundation and mandate to develop good policies and procedures for improving resilience. As 2016 comes to an end and we begin looking into 2017, I want to reflect and provide a few observations of strategic cybersecurity mistakes we have seen this year resulting in major losses for many organizations.

Each year, a question from your auditor will inevitably pop up, “Have you tested your goodwill for impairment yet?” In 2015, that question might have sparked more grimace than in prior years; try DOUBLE the grimace.

A recently released survey of more than 8,500 publicly-traded companies in the U.S. found that total goodwill impairment increased from $26 billion in 2014 to $57 billion in 2015. Ironically, this occurred in a year characterized by exceptionally high merger and acquisition activity. The increased M&A activity last year seems to promise more write-offs in the future and even more reasons to be concerned about getting it right.

After one of the most memorable and acrimonious presidential campaigns in American history, Donald Trump stunned observers by defeating Hillary Clinton to be elected the 45^th President of the United States. Additionally, the Republican Party maintained control of both the House and the Senate.

This combination will give Mr. Trump and a Republican Congress a unique opportunity to shape many areas of policy, such as health care, regulatory reform, defense spending, immigration and more. However, near the top of that list will almost certainly be taxes. 

Imagine you’ve just received an email from a potential vendor looking to make a connection. You notice that after his name in the signature block he has listed five abbreviations, all intended to make him appear qualified, reputable and knowledgeable. But what do the abbreviations actually mean? Are they relevant to the service you're trying to procure? 

Are you a small- or medium-sized company that exports its USA-made products to foreign countries? If so, are you taking advantage of a tax incentive known as an "interest charge-domestic international sales company" or IC-DISC?

The use of an IC-DISC allows you to significantly increase your company’s after-tax income. For example, profits are taxed at the dividend rate, as opposed to ordinary income tax rates that currently top out at 35 percent.

As I’m sure you’re aware, the trucking and logistics industry is one of the most regulated industries in the United States. Almost everything a trucking company does is governed by regulations, and complying with regulations is sometimes daunting and often frustrating. Ignoring applicable laws, however, can lead to heavy fines and losses in revenue.

A colleague told me a story about fraud at a retail chain where she worked after college. The company was having a problem with cash theft in one particular store, so the district manager scheduled polygraph tests for the cashiers to find the culprit or culprits.

Family-owned businesses really are the heart of the U.S. economy. Forbes magazine estimates that 90 percent of all U.S. businesses are family-owned or controlled by a family. More than that, family-owned businesses account for 50 percent of the U.S. Gross National Product. Clearly, they are critical to the stability and growth of the U.S. economy, as well as to job creation.

From time to time, I talk with a retired HR executive who stays up to date on significant HR related issues. Lately, he’s been working on the new Department of Labor overtime rules, and I found his comments significant as we work towards the new rule’s deadline on December 1, 2016.

Before becoming a parent I believed being married was the hardest thing ever.  Of course, after 13 years of proper training, my wife has almost whipped me into shape.  Forget the “seven-year itch,” she was probably ready to kick me to the curb after about two weeks.  Thank goodness she didn’t.

Last month, the City of Detroit demolished the 10,000^th vacant home in Mayor Mike Duggan's massive plan to eliminate blight in the city. Detroit was hit hard by the recession of 2008 and the corresponding drop in residential property values. As home values declined, homeowners couldn’t afford their mortgage payments and went into foreclosure. Currently, Detroit lists almost 140,000 homes in the foreclosure process with more foreclosures on the way.