Private Company Services - Press room

Located in all major US markets, PwC’s Private Company Services (PCS) is a national practice comprised of more than 170 partners who provide customized tax, audit and advisory services to private companies, their owners and high net worth individuals. The majority of America’s largest private companies are PCS clients1. They span a broad scope of sectors and industries ranging from manufacturing to retail to industrial to professional services. A hallmark of PCS is a robust thought leadership program that provides clients with timely, thought-provoking information to help manage and grow their businesses and wealth.
1 Forbes America’s Largest Private Companies 2014

PCS professionals are regularly sought out for their insight and opinion on issues of national and local interest affecting their audience. A number of recent articles featuring people from our Private Company Services practice - including Personal Financial Services (PFS) - are included below, as well as an archive of coverage over the past months.

Featured news

Human Resource Executive Online: Healthy, Wealthy and Wise
January 27, 2016

This story discusses how a new retirement and financial well-being report revealed a desire among employers at large companies to provide financial well-being tools and resources to help their employees with their savings goals. PwC's 2015 Employee Financial Wellness Survey was cited in the article as follows," insufficient saving and planning for long-term goals is a result of "shifting greater responsibility for retirement funding to employees in the face of stagnant wages, disappearing defined-benefit pensions, changing Social Security and Medicare benefits, longer life spans and rising healthcare costs."

Crain's New York Business: Executive Moves
January 27, 2016
The Executive Moves section in Professional Services News section of Crain's New York Business included the appointment of Shawn Panson to U.S. Private Company Services Leader.  

Wine & Vines: Bonus Depreciation on Vines Extended
Growing Grapes Under the PATH ACT
January 6, 2016
PCS tax partner David Pardes was interviewed for a story that ran in this wine industry trade publication about the new PACT legislation signed into law in December.  The legislation included new provisions that could benefit vineyard owners who are planting new vines.  According to Pardes, the bonus depreciation of vines will be phases out in five years. This should encourage those vineyard owners who plan to plant new vines to do it while this benefit is still in effect.

Bankrate: Why real estate investing in a selff-directed IRS makes no sense
December, 2015
The article discussed using real estate in IRAs. In the piece, Bill Fleming, Personal Financial Services managing director, explained that if you are going to invest directly in real estate, you will lose substantial tax benefits by doing it through an IRA. These include the ability to deduct mortgage interest payments from your taxes and the ability to write off the value of a residential property over 27 years.

Forbes: Five Ways To Keep A Family-Owned Business 'In The Family' For Generations
December 12, 2015
This story by Brian Luster and Steven Abernathy discusses the unique challenges facing business owners who wish to preserve multi-generational control within their family.  In the piece, they drew from PwC's 2015 Family Business Survey to discuss how shareholder agreements are the most widely used mechanism to address conflicts within the family.

Wall Street Journal: Financial Gifts for kids these holidays...or a present for the IRS
December 11, 2015
Leading up to the year-end, reporter Laura Saunders wrote about the "the kiddie tax," the IRS's extra levy on investment income earned by young people up to 24 years of age. In the piece, Mark Nash discussed how these rules present challenges as well as planning opportunities.  

Barron's: How to Lower Your Audit Risk
November 28, 2015
This story, which ran in Penta, a news site within Barron’s that provides advice for wealthy individuals, discussed the IRS' emphasis on auditing those with more than $5 million in taxable income. In the piece, Mark Nash, Personal Financial Services tax partner, discussed how a client of his was involved in a protracted audit that involved six+ specialists, lasted over a year, and required the taxpayer to come up with more than 1,000 pages of data. The investigation resulted in no back taxes being owed.

Reuters: PwC appoints Shawn Panson as U.S. private company services leader
November 17, 2015
In the Move section of the US edition of Reuters a piece was included on Shawn Panson's appointment as Private Company Services leader. The site features live updates on top economic, business and political news.

Bloomberg Business: Economy 2016:  Here's What You Need to Know by Peter Coy
November 5, 2015
Bloomberg Businessweek's Economics Editor used Trendsetter's Q3 2015 report for his discussion about wages in this economic update. In the story, he stated, "Wages are expected to grow a bit faster in 2016: Private companies surveyed by PricewaterhouseCoopers in the third quarter predicted they’d raise wages next year by 3.1 percent, the first time since 2008 the number hasn’t been below 3 percent."

SME Insider: The importance of having an exit strategy as a mature entrepreneur
October 30, 2015
This piece discussed the lack of preparation more than 60 percent of business owners undergo when passing on their businesses to the next generation and the steps they should take before retiring to ensure their companies stay on track. PwC’s 2014-2015 Family Business survey finding that only 12 per cent of family businesses survive into a third generation of ownership and the recommendation to beginning the succession process several years before the planned departure were included in the story.

Forbes: How to Take Advantage Of Your Company's New Obsession With Your Financial Wellbeing
October 28, 2015
PwC’s Financial Wellness study was mentioned in this article about the expanding financial wellness benefits that companies are offering.

Wall Street Journal: How a Survey of Private Employers Offers a Peek Into Wage Growth
September 15, 2015
Anna Louie Sussman discussed the PwC’s Trendsetter Barometer, which in its 20th year, has 80 quarters of survey data on historical economic performance that can be used as an indicator of wage growth according to Oxford Economics. 

According to the article, from the end of 2010 through Q1 2015, the private companies surveyed for the report expected average annual wage increases of between 2.1% and 2.9% for their hourly employees. That’s slightly higher than the actual rate that private employers have raised wages and salaries for the same period. This difference could be attributed to the range of businesses represented in the survey. In Q2 2015, the average expected annual salary increase rose to 2.97%, its highest level since 2008.

“When our surveys are telling us that people are going to go out and hire…that information is predictive as to what’s going to happen over the next year. So based on what we’re hearing from these companies, we would expect to see continued moderate increases in the number of people hired and continued moderate increases in salary,” said Ken Esch, the PCS partner who oversees the Trendsetter Barometer report. He added that privately held companies can often react more nimbly to economic conditions than their publicly traded counterparts.

Time Magazine: Here’s What Private Companies Know About the Economic Recovery
September 15, 2015
“If you want to know where the economy is heading, don’t look at the S&P 500. Look at what private companies are doing,” according to the Time magazine piece written by Rana Foroohar. The article discussed the 20 years of data provided by Trendsetter Barometer and how private companies have accurately predicted the GDP and other key economic indicators. The article went on to discuss that the US economy, according to the private companies interviewed for the report, is in a continued recovery by not one that can be described as lackluster.

A two percent uptick in hiring and modest wage increases are representative of this. “The private companies we survey want to hire more, but given the numbers of long term unemployed in the US, there has been a lot of skill atrophy, and firms either can’t find people with the skills they need, and aren’t willing to offer big pay hikes to those they do hire given this,” says PCS partner Ken Esch who oversees the report.

TheStreet.com: Apple Gets All the Attention, but private Companies Are the Real Economic Indicators
September 15, 2015
PCS partner Ken Esch appeared on TheStreet and discussed the important role that Trendsetter Barometer plays in understanding what to expect in the economy. This was determined after Oxford Economics analyzed 20 years of Trendsetter data and found that the report is predictive of certain economic results. For example, the views of the private company leaders interviewed predicted the 2008 recession. Information to pay attention to now? Trendsetter is showing that growth will continue, albeit slowly.

Baseline: Lack of Skilled IT Pros May Slow Business Growth
August 19, 2015
PwC’s Trendsetter Barometer was used for the basis of this article that discussed how confidence in business growth and a shortage of qualified workers are creating job opportunities for technology professionals.

Business Observer: Giant accounting firm: Florida is hot
August 7, 2015
The August 7, 2015, Business Observer which specializes in reporting on economic trends, emerging companies and leaders in Florida's Gulf Coast (Tampa to Naples), interviewed David Zimmerman, PCS marketing and sales leader, about growth opportunities and Private Company Services' expansion into Florida. "We've been looking really hard at Florida," Zimmerman told the publication. "The last three years have been an explosion of business in Florida." Zimmerman went on to say that some of this growth is the result of the state's pro-business environment and the economic rebound.

Think Advisor: Will 2015 Be the Year Financial Wellness Finally Takes Off?
August 5, 2015
Kent Allison, PwC partner and Financial Wellness program leader, was quoted in this story about the state of financial wellness programs. While there has been much talk about the benefits of financial wellness programs, a minority of companies offer programs. 

“The reality is there are relatively few true financial wellness programs in place today but many financial education or financial literacy programs,” says Kent E. Allison, a partner at PwC and a national leader in its Employee Financial Wellness Practice. “But there is a lot of talk and interest in financial wellness programs.”

According to the article, the difference between financial education/literacy and financial wellness is like the difference between reading articles on saving for retirement and developing a personal financial plan to do that, with or without a financial advisor.

Tampa Bay Business Journals: 3 questions with PrincewaterhouseCoopers’ Tampa leader for private company services
August 3, 2015
David Zimmerman, PCS partner and leader of the new PCS Florida practice was interviewed by the Tampa Bay Business Journal for this story about the growth of private companies across the US and in Florida. Private Company Services new Florida practice opening served as a back drop for the piece. Zimmermann said that he expects to see the practice grow by 50 percent in the next three years in large part because of this growth which is resulting from a number of factors: public companies are going private, there is an active startup market that is fueled by an increase in private equity investment. According to Zimmerman, “The company’s private equity firms are buying average $200 million to $1 billion in revenue, and we see a lot of those in Florida.”

Another reason for the growth of private companies is the increased access to capital. Banks are lending and more private equity money is available with favorable terms. “While it used to be that a private equity firm wanted a majority position for its investment, now they will take a minority position, because they see the opportunities for growth.”