ABA releases 3rd edition of 'Financial Statement Analysis and Business Valuation'

The American Bar Association has released the third edition of the best-selling “Financial Statement Analysis and Business Valuation for the Practical Lawyer,” published by the Business Law Section. The guide helps lawyers gain a working knowledge of financial concepts, terminology and documents with valuable guidance 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, co- authored by Robert B. Dickie and Peter R. Russo, 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 lawyers:

• 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

Robert B. Dickie is a lawyer and founder of The Dickie Group, which provides training in finance and accounting to most of the country’s leading law firms and to the in-house legal departments of numerous Fortune 100 companies, in addition to financial services including corporate valuations, damages assessment and expert witness services.

Peter R. Russo, a CPA, retired from Boston University Questrom School of Business, where he served for 15 years as executive in residence and senior lecturer. During that time, he served terms as faculty director of the Entrepreneurship Program and the Executive MBA Program. From 1983 to 1998, he was president and CEO of Data Instruments (now Honeywell Data Instruments).