Gift vs. Estate Taxes: Is It Always Better to Give …?
Maybe it’s true that it is better to give than to receive. But when to give is a question that tax and valuation experts often ponder.
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Demystifying the Discount Rate
As business valuation experts, we talk a lot about discount rates. But what are they? And how do we arrive at them?
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Complex Rules Dictate Accounting for Intangible Assets
In the world of mergers and acquisitions, the Financial Accounting Standards Board’s (FASB) Statements of Financial Accounting Standards (SFAS) 141 and 142 certainly changed the landscape.
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Litigation Outlook: Forensic Investigations in Divorce
Divorce isn’t pretty. But sometimes it’s downright ugly, with spouses hiding income, deflating business values or otherwise trying to diminish whatever could potentially be divided between them.
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The Ups & Downs of Construction Company Valuations
Construction contractors are accustomed to being at the mercy of the U.S. economy. The industry enjoyed strong growth in 2004, and new construction starts in 2005 look promising.
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“C” to “S” — Plan Carefully to Avoid Built-In Gains
Thinking of changing corporate status from a C to an S corporation? Unlike a C corporation, an S corporation generally does not pay a federal corporate income tax. Instead, the taxable income of the corporation is reported on the returns of its individual stockholders.
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Marketability Discounts — Quantifying A Lack of Liquidity
According to business valuation guru Shannon Pratt, marketability discounts are often among the largest money issues in a disputed business valuation.
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Standards of Value — Which One Works When?
Consider a toddler’s tattered blanket. What is its value? To the average person, the blanket is worth nothing. It’s small, old and worn out. But to the toddler — and to his or her parents looking for the beloved blanket at naptime — the tattered treasure is absolutely priceless.
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The Do’s and Don’ts of FLPs
Family Limited Partnerships (FLPs) have long been popular business and estate planning tools. Because assets in an FLP are excluded from a person’s estate, an FLP can substantially reduce the estate’s value and transfer or gift taxes.
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Reduce Risk to Enhance Value
How much control does an owner have over the value of his or her business? As always, it depends on the business. Value is based on a combination of marketability and risk factors
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