It takes Nancy Fannon (Fannon Valuation Group) only twenty minutes and nine Power Point slides to explain her simplified model for tax affecting, which she accomplished at last week’s BV Conference at the Illinois CPA Society. But, “What’s incredible and discouraging is that I’ve been teaching this stuff for five years,” she said, “and there’s still a general perception that the four models [for S Corp valuations] are complex and they are all saying different things.”
Fannon has effectively stripped down and synthesized the four traditional models (by Treharne, Van Vleet, Grabowski, and Mercer) to create her own, what conference presenter Jim Hitchner calls the “best of” model—and what Fannon simply calls the Simplified Model, soon to be published in a comprehensive guide on S Corp valuations from BVResources. (Watch for it this summer.) In the meantime, look for Fannon’s slides, articles, and more on the Simplified Model at her website.
Please let us know
if you have any comments about this article or enhancements you would like to see.