Demystifying Valuation, Economic Damages + Forensic Accounting

3 approaches for valuing business and homes

As a business valuation professional and CPA, I am often my family and friends’ first phone call regarding all sorts of financial questions and concerns. However, the most common question I come by is “How do you value a business?” The answer is far simpler than the application, but it is similar to how a …

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Gifting during COVID-19 pandemic

For business owners who have seen their business struggle and face unique pressures during the past five – six months, the thought of transitioning the business to the next generation may not have even crossed their minds. But if gifting a portion of the business to the next generation is potentially part of your estate …

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Tax case update: Estate of Streightoff v. Commissioner

In this estate case, the valuation provided with the estate tax return was based on an assignee interest claiming discounts for lack of control and lack of marketability. The decedent formed a limited partnership in 2008 with the purpose to manage and preserve the assets. The assets of the limited partnership consisted of marketable equity …

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Grieve v Commissioner gift tax case update

There have been two recent tax case rulings revolving around valuations of entities for either estate or gift tax filing purposes that those involved in estate tax planning should be aware of. Here is the finding for the first case. Grieve v Commissioner What appears at first to be a straight-forward valuation of two entities …

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Will it ever be the same again?

The beginning to 2020 has been interesting so far. We went from the highest reported DOW Jones average in February, to a 30 percent drop in market value a month later.  But what does that mean for values of privately held companies? Don’t miss: Business valuation during a pandemic To answer that question, we must …

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Business valuation during a pandemic

One of the first things we must understand is the effect of the valuation date on a valuation. A valuation is performed as of a date in time. That date is often determined by the circumstances which have led to the need for a valuation. For instance, a valuation for estate tax filing is the …

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Quality of earnings report vs. an audit report

What is the difference between a financial statement audit and a financial due diligence (aka quality of earnings report)?  In general terms, an audit report provides assurance to the public that a company’s financial statements are not materially misstated while a financial due diligence performs analytical procedures to gain a deeper understanding of the economic …

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Gifting your business as part of your succession plan

You have built your small business on your hard work and sweat. You may even have your son/daughter/niece/nephew or other family members working with you in the company. Now you are ready to move on, or at least slow down. You may start planning on gifting your business to someone else. Often times a small …

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Tax implications of stock vs. asset sale

As professional tax advisers we are often asked to comment on the tax implications our clients will face if their business is sold. From an income tax perspective, the buyer and seller are typically faced with structuring the deal as a stock sale versus an asset sale. These two strategies can result in significant tax …

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