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Valuation Perspectives: Article Archive

Valuation Article Archive
When a party owns a large block of shares in a public company, the real value of those shares may be significantly lower than the traded market price.
A string of recent federal court decisions recognizes the impact of built-in gains taxes on the value of a business and holds implications for valuing pass-through entities.
When a company’s owners are going through a divorce, performing a business valuation and finding true business value take on a new complexion.
A business valuation methodology that generates stand-alone business and real estate appraisals may prove beneficial and provide a more accurate assessment of total value.
Is a severe recession sufficient reason for a divorce court to revalue business assets? Does the statutory fair value standard preclude marketability and minority discounts in divorce? Does the selection of a valuation date impact the value conclusion in divorce?
Valuation specialists are often engaged to provide opinions of value that are a critical component of any meaningful assessment of value at different points in the bankruptcy process.
Although a business valuation rule of thumb is easy to use, the value it indicates should never be considered valid unless it is backed up with more detailed valuation methods specific to the business and industry.
Inclusion of often-overlooked valuation matters during the drafting of the agreement can help avoid litigation when the agreement’s provisions are invoked years later.
A Tax Court ruling strengthens the IRS’s scrutiny of transfer restrictions in family limited partnerships.
Many merger and acquisition transactions require that the selling founder or operator of a business retain an equity position in the company as part of the deal. These “rollover” interests vary from deal to deal but are frequently in the 10-20% range of total equity on a fully diluted basis.
At various business valuation and industry conferences, the IRS has informally discussed common reasons for auditing a business appraisal associated with a gift or estate tax return
While conceding that there is “no definitive formula” for ascertaining a law firm’s goodwill, the Washington Court of Appeals acknowledges “the monetary value of a reputation.”
Next to the decision to go into business to begin with, the decision to invest in an exit planning strategy relating to their business may be the best business decision an owner ever made.
Our engagements in connection with Colorado and Arizona marijuana businesses offer a first-hand confirmation of the cannabis industry’s business opportunities and unique challenges.
Businesses and not-for-profit organizations continue to be victimized by fraudulent activity, with perpetrators constantly using evolving technology to develop new schemes.
As tax considerations and financial reporting requirements grow in complexity, distinguishing between personal goodwill and enterprise goodwill in valuing a business can produce important outcomes for the parties.
In business valuation, segregating the intangible value of a company between personal and enterprise goodwill is becoming increasingly relevant.
While post-valuation date information is generally excluded in determining fair market value, in some cases it is relevant and has been admitted as evidence.
Business valuation is more art than science, and the ability to reconcile differing value conclusions is an essential step in the valuation process.
The valuation of a gas station/convenience store presents a number of special considerations – unique issues that ultimately affect the value or risk rate.
Properly performed, business valuation is a complex process that requires a consistent approach and incorporates specific steps and analyses.
Under the fair market value standard, the owner of the company is a hypothetical owner who does not avoid debt based on personal risk tolerances.
The value of a preferred stock lacking any common equity kicker, such as convertibility or other special features, is equal to the present value of its future income stream discounted at its required yield of rate of return.
The valuation of a debt instrument should incorporate not just the amount and timing of future payments, but also a detailed analysis of the instrument’s terms and conditions, the underlying collateral, and factors that impact the instrument’s risk profile.
The intangible value or “goodwill” of a franchise depends largely on the terms of the franchise agreement.
An intangible asset of seemingly low value can provide a welcome surprise when it is properly appraised by a business valuation professional.
During an economic downturn, the business valuation professional’s understanding of the subject company and the nuances of its industry is more important than ever.
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