On July 29, 1999, a landmark case rocked the business valuation world. On that date, the U.S. Tax Court rendered a decision in Walter L. Gross, Jr. et al. v. Commissioner of Internal Revenue that would forever change the way analysts view the valuation of S corps. The Gross decision was not well received by the valuation profession and remains a controversial decision to this day.

In response to Gross, Daniel R. Van Vleet developed a model in 2001 that addresses the valuation impact of the tax differences between C corps and S corps, and their respective shareholders. Since that time, Dan has given dozens of presentations and authored articles and book chapters regarding the valuation of S corps. He now believes that the time has come for a book that addresses the unique issues surrounding the valuation of S corps in a more comprehensive manner.

New book: On the 20th anniversary of the Gross decision, Business Valuation Resources (BVR) and Daniel R. Van Vleet are pleased to announce an agreement to release an S corp valuation book in the spring of 2020 titled Guide to the Analysis and Valuation of S Corporations. The book will address the following S corp valuation related issues:

1. Legal, tax, and ownership characteristics;
2. Standard of value, level of value, premise of value, objectives, and purposes;
3. Financial statements analysis;
4. Overview of relevant research and academic papers;
5. The Tax Cuts and Jobs Act;
6. Application of business valuation approaches and methods;
7. Corporate transaction tax structuring;
8. Valuing noncontrolling equity interests;
9. Valuing controlling equity interests;
10. Valuation discounts, premiums, and adjustments;
11. Valuing S corp ESOPs;
12. Valuing small S corps;
13. Unique valuation situations and issues;
14. Common errors and misconceptions; and
15. Recent and relevant court decisions.

“I am excited about the prospect of publishing this book with BVR,” says Dan. “I hope it will be a useful addition to the body of knowledge in the field of S corp valuation.” Sarah Andersen, publisher at BVR, says, “We are absolutely thrilled to work with Dan on this book to share his vast experience and expertise on S corp valuation with the broader business valuation audience.”

Van Vleet has more than 28 years of experience in providing valuation opinions and expert witness testimony in a broad range of industries for a variety of purposes. He is a nationally recognized expert on the valuation of pass-through entities and is the developer of the Van Vleet model, a widely used pass-through entity valuation model.