Last week at the AICPA National BV conference, Kalman Barson (Barson Group) advised the audience to consider “concepts that go far beyond pushing a pencil or keying in data” in divorce cases. He suggested practitioners consider the following questions when determining a value:
- How do improper actions impact value? What if those improper actions are common within that specific business or industry?
- Should the existence of unreported income create a difference in value?
- Is there logic that a PTE is inherently worth more than a C corp?
- The public markets dropped 40% in 2008 –were private companies impacted similarly?
- Are either age or heath relevant to value? To what extent does relative power structure of the company and personal contribution make a difference in the value of the interest?
Look for Barson’s insight to these questions in an upcoming issue of Business Valuation Update.
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