Lucero v. United States – Court Rules “Severely Distressed” Company was Overvalued
A federal district court recently held that a married couple was entitled to a tax refund for a 2014 court settlement that included stock in a private business.
We specialize in the financial aspects of divorce and have assisted attorneys as consultants and experts in the valuation of intangible assets of closely held businesses, negotiations, and mediation. We have testified in numerous divorce cases and have served as court-appointed experts.
Gift & Estate Planning
With today’s ever-changing tax laws, estate planning can maximize savings and preserve the assets our clients worked so hard to build and maintain. Whether it’s providing for future generations or funding a favorite charity, we can assist in establishing, within your transition plan, the benefits of different plans to allow you to preserve your well-earned assets, provide for continued income, and prepare for all the changes life can bring.
Mergers and Acquisitions
Knowing how much your business is worth is vital to maintain sustainability and growth. However, when your succession plan includes the sale of your business, a valuation can set realistic price expectations. Conversely, if you are purchasing a business, the valuation will position you to pay market rate.
Marketing a business for a potential sale requires a professionally prepared company prospectus. Our offering memorandum not only highlights the nature and history of the company's business, it also effectively communicates the financial data in a widely accepted format.
A thorough buy-sell agreement should be in place in every business to prevent loss, whether during a transition or in preparation for unexpected circumstances that may arise. Brisbane Consulting Group brings the knowledge of all aspects of buy-sell agreements, including financing options, overseeing liquidity issues, and reviewing all ‘triggering events.”
Business owners often disagree on a price for their ownership in the event of death, disability, or withdrawal. A business valuation that considers all the characteristics of ownership is crucial in settling any dispute. Our expertise in valuation in conjunction with our experience in litigated matters is invaluable in these cases.
Employee Stock Ownership Plan (ESOP)
The issue before divorce courts is the extent to which an interest in a stock option plan constitutes marital property when the plan comes into existence during the marriage but is contingent on the employee spouse´s continued employment after the divorce. We have significant experience in determining the appropriate coverture fraction and have valued stock options for publicly traded companies.
After valuation issues are settled, our expertise as CPAs allows us to structure the terms of the settlement. In addition to our proprietary valuation software, we have customized divorce-planning software which instantaneously calculates guideline child support and the after-tax cash flow of the parties after maintenance and a distributive award. This sophisticated program provides a comparative analysis of various settlement and support scenarios.