Complete financial information provided to a financial expert can lead to more credible work product produced by the expert. Unfortunately, many attorneys bring the CPA/CVA into the picture too late in the case!
Category Archives: Business Valuations
The Attorney/Valuator Partnership in Divorce Cases
Equitable distribution in divorce causes the need for emphasis to be placed upon the economic aspects of marriage. This includes the valuation and division of marital property, as well as any resulting tax consequences. This economic emphasis in divorce proceedings
Are Past Transactions Involving a Company’s Stock Important Considerations in Business Valuation?
A very useful, but sometimes overlooked market approach method is the analysis of past transactions involving the subject company. There are at least three groups into which these transactions
What Is the Most Important Aspect of the Market Approach To Business Valuation?
The market approach to business valuation can provide excellent indications of value. While the mechanics of some market approaches are quite simple, the market approaches can also be easy targets for cross examination.
Should As Much Emphasis Be Placed on the Willing Seller As the Willing Buyer?
While it is important to consider a potential buyer’s positions in a business valuation, it is equally important to give consideration to the potential seller’s positions in a valuation.
What Valuation Considerations Should Be Made in Buy-Sell Agreements?
Values established by buy-sell agreements may be ignored, may be controlling, or be only a factor to consider in determining values. The Tax Court listed the following factors for making the buy-sell agreement price
Are “Rules of Thumb” Useful in Business Valuations?
Rules of Thumb are generally expressed as multipliers. A common example would be that some particular type of business will sell for .75 to 1.50 times annual revenues. Another popular multiple is a multiple of discretionary earnings. For example, a particular type of business is said to sell for X times Seller’s Discretionary Cash FlowContinue reading “Are “Rules of Thumb” Useful in Business Valuations?”
What Is Meant by “Premise of Value?”
The “Premise of Value” can refer to an assumption as to the status of the business under which a transaction is, or would be expected to occur. That is to ask, will the business be a going concern, will it be in an orderly liquidation, will it be as a forced liquidation, or will it
What Are Some Elements of a Well-Written Valuation Analysis?
When complete reports are essential, you need a Certified Valuation Analyst. Listed below, are elements of a well-written valuation analysis:
What Considerations Should Be Made in Drafting Buy-Sell Agreements?
Drafting Buy-Sell Agreements requires that special consideration be given to a number of special rules that affect valuations for estate and gift tax purposes. For example, options to acquire property at less than FMV and restrictions on the right to sell property are generally disregarded
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