Robert A. Bonavito, CPA PC


Fixed Income Market and the 2 in 10 Year Bonds

When you talk about bonds changes in the bond pricing use basis points. 100 points equals 1%. For example, if I say a bond went down 50 basis points, basically I am saying it went down ½ %. One of the best indicators of the health of the economy is the spread between the 2 in 10-year bond.  I tracked this on a daily basis and usually the spread is 200 basis points. Typically, the 2 year is at 2% and the 10 year is at 4%. However, in recent years the spread has hovered around 100 basis points, and currently in 2017 was at a low of 75 basis points. I am very concerned about the spread between the 2 in 10 year, but maybe due to the structural changes in the economy this tightening of the spread will not lead to catastrophe as it has in the past.

Posted November 30, 2018 by Robert A Bonavito in Educational Videos

Father of Forensic Accounting

Many people do not realize that accounting actually started in 3500 BC, and it steadily developed until approximately 450 A.D. In 450 A.D. an Italian monk named Luca Picioli wrote a book called Summa the Arithmetic, Geometry of, Portion. This book codified for the first time in history the basic principles of accounting. The book discussed the methodology of recorded debits and credits, preparing income and balance sheets. That is why Luca Picioli is largely known as the father of accounting.

Posted November 30, 2018 by Robert A Bonavito in Educational Videos

Exit Multiples in Business Valuation

When valuing a company, exit multiples are very important. Typically, we use exit multiples as a sanity check. For example, if the company has a value of $2 million, EBITDA of $250,000, its exit multiple would be 8. Once we have the exit multiple we can then compare it to other companies within the industry.

Posted October 25, 2018 by Robert A. Bonavito in Business Valuations