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Business Valuation

Business valuations generally arise in the context of one or more of the following three categories: (1) transactions; (2) litigation; and (3) taxes (or estate planning). Transaction appraisals include acquisitions, mergers, leveraged buy-outs, initial public offerings, ESOPs, buy-sell agreements, and many other engagements. 

Valuations may arise in a litigation context in connection with marital dissolution, bankruptcy, breach of contract, dissenting shareholder and minority oppression cases, economic damages computations, and other cases. Valuations may also be conducted for tax reasons, including gift and estate taxes, estate planning, family limited partnerships, ad valorem taxation, and other tax-related reasons. The Business Valuation resource section presents guidance on performing valuations of closely-held businesses and intangible assets, including an overview of the valuation process, the factors to consider before accepting the valuation engagement, and the various methods of valuation. Additionally, it includes tools and aids that would facilitate the business valuation process.


 

 

 


BV Conference Video Session
FVS Section Member
Filmed at the 2008 BV Conference in New Orleans, Mike Mard discusses FAS 157, it's history, and impact for valuation professionals. Learn More>>
Retention of the Separate and Distinct Asset Test in the Final Intangible Asset
FVS Section Member
The Supreme Courts decision in INDOPCO, Inc. 503 US 79 (1992) denying deductions for banking and legal fees incurred to facilitate a friendly takeover offer gave rise to concerns that the IRS would seek to curtail current deductibility of other types of business expenses that could be viewed as creating more than an incidental future benefit. Learn More>>
Look for the INDOPCO Label
What is the "INDOPCO guidance?" It's shorthand for guidance on the contentious issue of whether to capitalize or deduct certain expenditures, in this case those relating to intangible assets. Some critics complain the government is giving an advantage to larger taxpayers able to do in-house what smaller taxpayers must outsource. Learn More>>
Goodwill Requires Enforceable Covenant Not to Compete
FVS Section Member
Decisions in the case of Norwalk v. Commissioner, TCM 1998-279, have substantial implications for the valuation of professional practices. This article reviews the case, which involved an assertion by the IRS of a gain on liquidation of an incorporated accounting practice. Learn More>>
Intellectual Property Valuation and Royalty Rate Analysis for Technology Transfers
FVS Section Member
This presentation summarizes valuation, transfer price, and economic damages analyses related to technology. In particular, the various types of technology related with Intellectual Property such as patents, copyrights, trademarks and trade secrets are addressed in this presentation. Learn More>>
Business Valuation Practice Management Toolkit
This toolkit provides guidance on how to build a successful business valuation practice. Learn More>>