Category: Valuations

Estate planning can be a complex process that includes identifying the value of assets within an estate. Properly valuing those assets helps ensure an accurate distribution according to the wishes of the estate holder while minimizing the potential for disputes among heirs. It also allows for efficient tax planning and can help reduce estate taxes and liabilities. Finally, a precise and accurate asset valuation helps in complying with legal and regulatory requirements, avoiding potential penalties or complications. Below are details… Read more ›

Understanding Business Valuation Valuations are subjective in nature so the expert’s report must be persuasive. It is critical to provide supporting information and documentation for every assumption, methodology, or process and make sure that it can be replicated by the reader. The IRS is going to read any valuation report attached to an estate tax return or a gift Tax Return. Any errors, no matter how small, will destroy the appraiser’s credibility. Objectivity and independence are critical to the role of the appraiser. … Read more ›

In the dynamic landscape of mergers and acquisitions (M&A), the role of business valuation cannot be overstated. The process of determining the worth of a company plays a pivotal role in shaping the success of an M&A deal. This blog explores the intricacies of business valuation in the M&A landscape, shedding light on negotiation tactics, due diligence, and the profound impact on shareholder value. Understanding the Importance of Business Valuation in M&A At the heart of any M&A transaction lies… Read more ›

This article provides an introduction to Business Valuation preparation, if you wish to delve deeper into this topic, please feel free to reach out to one of CBM’s many CVA’s through our business valuation page. The value of a business is not merely determined by its assets and liabilities instead it considers all the possible factors that may impact a company’s economic value. One of these factors is the business’ earning capacity. Earning capacity refers to the potential of a… Read more ›

If you’re new to the concept of business valuations or looking to learn more about the topic, you may quickly find that determining the real value of a business isn’t an easy task. Your company’s assets and liabilities can help you determine a baseline value, but there’s so much more that goes into a business than the physical assets. Goodwill accounts for all the intangible value of a business. Knowing what it is and how to calculate can assist business… Read more ›

It’s common in divorce cases that involve an interest in a closely held business for that investment to be the marital estate’s most valuable asset. In many states, when the owner-spouse brings this asset to the marriage, a specialist may be called upon to distinguish between active appreciation in the business’s value (which is generally subject to division) and passive appreciation (which generally isn’t). Appreciating the Difference Typically, when a spouse owns an interest in a closely held business before marriage, that interest is considered… Read more ›

Structured settlements are commonly associated with the payment of personal injury damages because of their advantageous tax-free treatment. But some business purchases and buyouts can also benefit from structured settlements using annuity payments from an insurance company. While payments from these non-personal injury cases aren’t tax-exempt, the recipient (the seller of the business) only owes taxes on the amount of money received each year. Financing Alternatives To illustrate when structured settlements might work, suppose a buyer of a private business… Read more ›

When a business owner is getting a divorce, determining the value of the business interest to include in the marital estate can be one of the most contentious and time-consuming issues. Rather than hire separate experts to duke it out in court, some spouses opt to hire one joint business valuation professional. Benefits for Both Spouses Here are some of the key advantages of hiring a joint expert: Cost. Both parties jointly pay the retainer and any incremental fees out… Read more ›

PDF: Councilor, Buchanan & Mitchell Partner Dan Keefer Graduates from Upstream Academy’s Emerging Leaders Program Dan Keefer, CPA, CVA, a partner at Councilor, Buchanan & Mitchell, has graduated from the Upstream Academy’s Emerging Leaders Program. The program, which develops future leaders in the accounting profession through a rigorous, year-long period of instructor-led trainings, dialogue and the hands-on application of new knowledge, engages participants on the most pressing issues facing the industry. “The Emerging Leaders program broadened my understanding of what… Read more ›

The Build Back Better Act, as initially proposed, made significant changes that affected estate planning for high net-worth individuals. The Act proposed a significant reduction in the basic exclusion amount from $11.7 million to approximately $6 million. It also proposed to eliminate the grantor trust rules that estate planners have been using to reduce taxable estates for decades. If this Act had passed in its original form, it would have significantly reduced opportunities to reduce transfer taxes. However, the Build… Read more ›