Services
Transaction-Related Valuations
Whether you are involved in the sale,
purchase, or merger of a business or business interest, the
objective from the buyer's and seller's perspective is to arrive at
an agreed upon transaction price as well as an acceptable set of
terms.
We can help you determine a
reasonable value, or range of values, evaluate the trade-off between
cash and terms, and assist in structuring the deal to help assure a
successful transaction. Our valuation services can help you in the
following ways:
- Purchase or Sale of an Entire
Business
- Purchase or Sale of an Ownership
Interest in a Business
- Allocation of Equity in a Merger
- Mergers & Acquisitions
- Buy-Sell Agreements
Disputes & Litigation-Related Valuations
Whether you are involved in a marital
dissolution or a shareholder dispute, the role of the appraiser is
critical. These are often delicate situations that will require a
proper valuation of the business or business interest. The
appropriateness of the valuation methods used, the rate of return
used, the adjustments made to the income stream, the value of
goodwill, and the discounts/premiums applied or not applied are just
a few of the key aspects of a properly prepared valuation in a
dispute setting. It is important to bring in a competent,
experienced valuation analyst at the outset and to have the analyst
involved at every step. We can help you in a variety of areas
including:
- Marital Dissolutions
- Partner/Shareholder Disputes
- Shareholder Agreements
- Case Assessment
- Arbitration/Mediation
Estate & Gift Tax-Related Valuations
Estates or gifts involving
substantial business assets have required valuations for many years.
General guidelines for estate and
gift valuations are primarily set forth in the Internal Revenue
Code, Treasury Regulations, and Revenue Rulings. The applicable
valuation date for estate taxes is defined as the date of death. An
alternative valuation date of six months subsequent to the date of
death is also provided for. The use of the alternative date may help
to minimize estate taxes. The valuation date for gift taxes is as of
the date of the gift.
The standard of value applicable to
all gift, estate, and other tax-related transfers of concern to the
IRS is fair market value. Fair market value as defined in Revenue
Ruling 59-60 is:
The price at which the property
would change hands between a willing buyer and a willing seller when
the former is not under any compulsion to buy and the latter is not
under any compulsion to sell, both parties having reasonable
knowledge of the relevant facts.
A careful process must be followed if
the tax impact and the possibility of future IRS challenges are to
be minimized. We provide a properly prepared report that will both
determine and support the value conclusion.
- Estate Tax Valuations
- Gift Tax Valuations
- Family Limited Partnerships
- Shareholder/Partner Agreements
