business transition

Business Transition Preparedness Post COVID-19

During the ongoing management of COVID-19 restrictions, we are all trying to determine and assess the short- and long-term damage on businesses, the economy, and the capital markets. While we don’t pretend to have answers better than others, we would like to share our thoughts on the impact of the virus on M&A transactions. First off, we don’t want to trivialize the health impact imposed by the pandemic nor the human element of lost jobs, life disruptions, and family separations. Our intent is to provide our strategic thoughts while we try to maintain a sense of normalcy.

Prior to the onset of COVID-19—only a month ago—the M&A markets were as strong as ever. We had all heard about the strength of economic fundamentals. The combination of a strong US economy, tremendous amounts of capital raised, liquid debt markets, low interest rates, and favorable demographics were the driving forces. Deal values and volumes were at a record pace.

Today, the economy is certainly shaken but several favorable factors remain—significant capital ready to be deployed, favorable debt markets, and demographics. But with hopes of slowing the spread of the virus and escalating medical capabilities, coupled with the massive CARES Act and PPP aid packages passed by Congress, many analysts have suggested the US economy should start showing signs of recovery in the coming quarters. With this optimism in mind, we believe M&A volume will once again strengthen later in the year.

As companies approach the M&A market, we believe there will be a need to defend current financial results, projected financial forecasts, and valuation expectations. These discussions will need to be fact-based, convincing interested parties that first half declines in revenue and earnings were temporary and a result of extraordinary circumstances, and therefore nonrecurring in nature. We believe valuations will likely be impacted short-term, but we expect to see a return to higher levels especially with the return of competition from private equity investors and strategic acquirers and for those companies that experience less business interruptions.

For business owners who are or were considering ownership transition, we believe now is a good time to prepare and plan ahead. This may include estate and tax planning, retirement and wealth management, accounting clean-up (such as pre-transaction quality of earnings), thoughts on succession management, pre-market activities (such preparing a confidential investment presentation), and strategizing with your M&A advisor on likely investors/acquirers. Accordingly, now is a good time to think and plan ahead. There will be a return to normalcy soon and pent-up demand from investors and acquirers will create a competitive M&A market once again. Those who are prepared for the opportunity will fare well.

We know these remain uncertain times but if you would like to learn more about how we can help, please visit us at

cares act

Learn the Business Benefits of the CARES Act

Our WFY Tax Partner, Richard Huffman, has created a 15-minute video presentation to illustrate the benefits your business may qualify for under the CARES Act.  Included are the Paycheck Protection Program Loans, Employee Retention Credit and deferral and income tax benefits. Watch the video to learn which benefits apply to you.

Please contact your WFY advisor to discuss how your business can benefit from these programs or you can contact us here.

economic impact payment

IRS Launches Economic Impact Payment Direct Deposit Portal

Today, the IRS launched a portal specifically focusing around the Economic Impact Payment. The portal is designed for taxpayers to check the status of their stimulus payment, set up direct deposit, and more.  Click here to visit the Economic Impact Payment Direct Deposit portal.

When clicking the “Get My Payment” button, taxpayers will be able to:

  • Get their payment status
  • Confirm their payment type (direct deposit or check)
  • Other information if needed, such as their bank account information

Taxpayers who want to accelerate the process of receiving their payment must add their bank account information and provide the following information:

  • Their AGI from their most recent tax return filed, either 2019 or 2018
  • The refund or amount owed from their latest filed tax return
  • Bank account type, account and routing numbers.

When clicking the “Non-Filers: Enter Payment Info Here” button, taxpayers who have not filed their 2018 or 2019 federal income tax return and their gross income didn’t exceed $12,200 will be able to:

  • Enter your current information such as your name, current mailing address, bank account information, and more
  • Find out if you’re eligible for an Economic Impact Payment

If you need more information on COVID-19 resources for your business and employees, click here.

Disaster Relief Payment Tax Assistance to Employees Affected by COVID-19

By Richard A. Huffman, CPA, MST

The national emergency declaration on March 13 triggered a tax benefit which allows employers to make non-taxable qualified disaster relief payments to employees for reasonable and necessary expenses resulting from the coronavirus pandemic.

Reimbursable expenses excludable from employee taxable income are as follows:

  1. Unreimbursed medical expenses including co-pays, deductibles, vitamins and supplements
  2. Increased expenses associated with being quarantined at home (e.g., increased utilities and home office expenses)
    1. Home office expenses include expenses associated with setting up or maintaining a home office such as enhanced internet connections, computer monitors, laptops, printers, office supplies, etc.
  3. Housing for additional family members (e.g., transportation and living expenses for college students returning home including duplicate meal expenses)
  4. Nonperishable food purchases/reserves
  5. Increased childcare expenses
  6. Expenses to enhance mental health and physical well-being from social distancing such as meditation apps and home health fitness
  7. Alternative commuting means in lieu of mass transit

Due to the extraordinary circumstances surrounding a qualified disaster, there is no dollar limit to what qualifies just as long as the expenses in question are reasonable and necessary with respect to the coronavirus.  Furthermore, employees are not required to account for or substantiate actual expenses in order to qualify for the exclusion and payments are not subject to discrimination testing.

With generous tax benefits and easy administration, qualified disaster relief payments are a valuable benefit that all employers should consider when trying to respond to the adverse financial impact that the coronavirus has on its employees.

If you have any questions, please contact your WFY tax specialist or email us at

Copyright 2020.  All Rights Reserved


Avoid Phishing in the Time of COVID-19

As the uncertainty of the coronavirus pandemic continues, scammers are using different ways to gather your information and use it for ransom.

Some websites are offering information on COVID-19 relief programs in exchange for signing up through them as a subscription or requesting a fee. With this, the websites hold your basic information ransom and could possibly cause you problems in the near future.

WFY wants to make sure there aren’t any more problems for our clients who are already going through an ambiguous period of time. Fraud will only increase as the coronavirus pandemic goes on. Therefore, we advise you to only work with sources you know are safe and whom you’ve worked with before. On our WFY website, we have provided a COVID-19 relief page with safe links that can help you with any questions on resource programs at

If you have any questions or concerns on a COVID-19 relief program, please contact your WFY tax advisor.

coronavirus enacted laws

Summary Analysis of Coronavirus Enacted Laws

By Richard A. Huffman, CPA, MST

With the recently enacted laws to help companies with the current Coronavirus pandemic, there has been confusion regarding which benefit programs will apply to what companies.

In our efforts to assist you in which benefits can help you and your company, WFY has created a breakdown summary spreadsheet and flowchart below.