To help lawyers gain a practical, working knowledge of financial concepts, terminology, and documents, this new edition provides the know-how to translate a client’s financial goals into practical legal solutions. Whether handling the sale of a company, negotiating a loan agreement, preparing disclosure documents, or handling securities cases, this book discusses the advantages and disadvantages of various methods, explains which valuation techniques are suitable for specific situations, and weighs the risks and rewards of creating value by acquisition.
This comprehensive resource provides detailed guidance on how to analyze the income statement, balance sheet, and cash flow statement. With added chapters and updates to stay current with the ever-changing and complex rules, this guide will help you:
- Understand the content and purpose of financial statements and the rules by which they are prepared
- Identify and avert securities fraud by knowing how to analyze revenues
- Learn the warning signs in gross margins, operating margins, and net margins
- Recognize the degree of liquidity or illiquidity the balance sheet indicates
- Assess a company’s financial leverage
- Learn how to monitor a company’s operating, investing, and financing activities
- Identify whether a company is an absorber or generator of cash
- Explore the M&A process
- And much more!
A detailed index and glossary of common terms and abbreviations and terms are also included.
About the author
Peter R. Russo retired from the Boston University Questrom School of Business in 2017, where he served for 15 years as Executive in Residence and Senior Lecturer.? During that time, he served terms as the Faculty Director of both the Entrepreneurship Program and the Executive MBA Program.From 1983 to 1998, he was the President and CEO of Data Instruments (now Honeywell Data Instruments).Peter is a Certified Public Accountant and currently serves as advisor and board member for a number of commercial and not-for-profit organizations. A graduate of Montclair State University, he earned an MBA from Harvard University, where he was elected a Baker Scholar.