Business Valuation Articles

The treatment of business goodwill in divorce cases varies from state to state. Courts in more than half of the states, including Florida, make an important distinction between personal and enterprise goodwill.

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.

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.

Divorce involves complex financial issues. A financial professional can help the parties resolve such matters as divvying up a marital estate and valuing private business interests. 

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.

The U.S. Tax Court addressed several key business valuation issues in a recent gift tax case.

Some business owners design their estate plans without consulting a business valuation professional, but do-it-yourself valuations can be risky.

When valuing a business, it’s important to identify nonoperating assets and liabilities that may have a significant impact on value.

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.

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.