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Answer Upon - Current Estimate of Economic Impact of Options Backdating
Merger and Acquisition Lawyers or each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThere are several legal complications involved in mergers and acquisitions. It is advisable to hire a lawyer for mergers or acquisitions. Lawfully binding contracts and agreements have a lot of terminology that people may not understand. Lawyers have requisite knowledge that can help people understand their rights in relation Assuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B The other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this num Attracting Visitors to Your Trade Show Booth I had a discussion with Erik Lie about the experiences with Stock Options Backdating (SOBD) and the economic impact of his work. According to Erik, at least 15% of the stock options grants between 1996 to August, 2002,were backdated. Some were within 30 days of the grant date, others more egregious. The number of companies though he said that were going to come clean would be far less than 15%. Here is what we came up with.After you determine that you will be exhibiting at a show; get your killer display; scheduled and train staff; and have everything set up on the show floor…now comes the hard part…getting people to visit your booth! There seems to be a never-ending push for creativity and innovation in this area, and truly there is no magic an First the assumptions: 1. # of companies that actually are investigated or asked by the SEC (currenty June 03 is 42) by June 2006 = 100 2. # of companies that will complete the 3 step process of preliminary investigation, comprehensive audit and finally restatement of results (approximately at 30-50%) = 40 3. Approximate amount of time spent performing the initial investigation = 4-6 weeks. 4. Approximate time spent doing comprehensive audit = 20-32 weeks 5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants 6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry 7. Grant value net = $15M per incident If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations. # Expense Item Description Cost 1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this numb 9 HOT Debt Management Tips e assumptions:1. Four top tips: Four highly recommended methods for managing debt are to track your expenses, cut spending, pay cash and establish an emergency fund.2. Make timely payments: If payments to your DMP and creditors aren’t made on time, you could lose progress you’ve made on paying down your debt.3 1. # of companies that actually are investigated or asked by the SEC (currenty June 03 is 42) by June 2006 = 100 2. # of companies that will complete the 3 step process of preliminary investigation, comprehensive audit and finally restatement of results (approximately at 30-50%) = 40 3. Approximate amount of time spent performing the initial investigation = 4-6 weeks. 4. Approximate time spent doing comprehensive audit = 20-32 weeks 5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants 6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry 7. Grant value net = $15M per incident If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations. # Expense Item Description Cost 1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this num Succeed In Business By Watching Movies omprehensive audit = 20-32 weeksMovies make a great past time. Millions of people enjoy movies for their pure value as entertainment devices. But how many people know that movies can teach some of the greatest business lessons possible.Study the business lessons inside some of the most popular movies and you can quickly grow the prospects of your busi 5. Costs in back taxes, delisting, restatement, defending lawsuits & fines = 30% of cumulative value of option grants 6. Size of company assumed on average: $500M in revenues, 2500 employees, 25+ grants under inquiry 7. Grant value net = $15M per incident If you want to do your own analysis (how much will this cost my company), feel free to use some of these estimations. # Expense Item Description Cost 1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this num Vending Machine Rental - How To Profit From One ense Item Description CostIf you want to start your own vending business but do not have enough money to buy a machine, you can temporarily make use of vending machine rentals that are made available in your area. Vending machines success has been increasing but even with its increased number, the demand for them are still high.Vending machine r 1 Initial Investigation Typically done by Board & Audit team $1.5 M 2 Communication expenses Economic impact of communication loss to company $4M 3 Audit fees Formal investigation fees for auditors $30M 4 Restatement costs Includes delisting, cost of documentation, $9 M 5 Taxes and fines Back taxes owed to IRS, Fines by SEC $15 M 6 Legal fees Defending lawsuits on backdating $20M Subtotal For each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BThe other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this num Restaurant Decor Ideas: Serve Unusual Framed Art with the Meal of the Day! or each company, $500M revenue $79.5M Assuming 50 companies Completely go over the end to end process $3.975BIf you feel your restaurant decor is drab, spruce it up with unusual framed art. Every wall can tell a story from the past, reflect a certain theme, or create the dining atmosphere you want for your patrons. There are paintings and posters to reflect almost any theme. From African-American art to Latin art, and even Native art Assuming remaining companies Remaining companies only go over steps 1 & 3 $1.75 B The other part of the economic impact stems from losses in market capitalization. If you estimate currently (42 companies) lost over $63 Billion in Market capitalization (United Healthcare itself accounted for over 30% of this number) over the last 9 months. Assume that will be 50% less (since the bad news is out) for the remaining 50+ companies. The impact is another $31B. We also did a detailed analysis on this portion of the impact. Total Impact of Stock Option Backdating ~ $100 Billion. For each company approximately = $50 to $100 Million in expenses.
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