Business Valuation Articles
Posted by Douglas Sosnowski on March 02, 2020
Equity-based compensation can help businesses attract and retain qualified employees. Limited liability companies (LLCs) can issue a special kind of equity-based compensation known as a “profits interest,” however, a business valuation professional is essential to determine the value of these ownership interests for tax and accounting purposes.
Posted by William P. Allen on February 18, 2020
When valuing a business interest for federal transfer tax purposes, it's usually taboo to consider events that happen after the valuation date. But there are two important exceptions to this general rule: 1) subsequent events that are “reasonably foreseeable,” and 2) unforeseeable subsequent events that provide an “indication” of value.
Posted by William P. Allen on January 21, 2020
The purpose of a buy-sell agreement is to ensure a smooth transfer of ownership and avoid disputes over the buyout price when an owner dies or leaves the business.
Posted by Douglas Sosnowski on January 07, 2020
The U.S. Tax Court addressed several key business valuation issues in a recent gift tax case.
Posted by Louis Cercone, Jr. on December 17, 2019
Some business owners design their estate plans without consulting a business valuation professional, but do-it-yourself valuations can be risky.
Posted by William P. Allen on December 03, 2019
When valuing a business, it’s important to identify nonoperating assets and liabilities that may have a significant impact on value.
Posted by Louis Cercone, Jr. on November 19, 2019
Courts are divided on whether to allow discounts when valuing business interests in shareholder disputes and divorce cases. Whether discounts are equitable typically depends on state law, case facts and, ultimately, the court’s discretion.
To Tax Affect or Not to Tax Affect? Federal Case Reviews the Tax-Affecting Debate for Pass-Through Entities
Posted by Louis Cercone, Jr. on October 22, 2019
In Kress v. United States, a federal district court accepted the practice of tax affecting the earnings of so-called “pass-through” entities. It also rejected the application of a premium to reflect the tax advantages of owning a minority interest in a pass-through business.
Posted by Louis Cercone, Jr. on September 17, 2019
Delaware’s Supreme Court recently struck down a controversial statutory appraisal decision in Verition Partners Master Fund Ltd. v. Aruba Networks, Inc.