Tax Court allows for ‘slight’ discount for lack of control for majority interests in real estate holding companies
In a gift and estate tax dispute, the estate and Internal Revenue Service agreed to apply discounts for lack of control and marketability to the majority interests in a number of real estate holding companies.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
LLC buyout at fair value poses ‘conundrum’ for the court
In allowing LLC members to buy out a departing member to avoid the dissolution of the company, a court had to determine the fair value of the departing member’s interest in a holding company.
Prince estate and IRS embroiled in fierce valuation dispute
A recent article in the Star Tribune says the executor of the estate of Prince, the late world-famous rock star, and the Internal Revenue Service are currently locked in a fierce estate and gift tax dispute.
Letter to the Editor: Commentary on Recent Statements by the IRS Regarding the Change to Appraisal Reviews
Former IRS manager Michael Gregory comments on recent statements from the IRS and ASA concerning a key issue with appraisal reviews prior to imposing a civil money penalty for valuation misstatements under IRC Section 6695A.
BVU News and Trends December 2020
A monthly roundup of key developments of interest to business valuation experts.
BVR featured in ABA podcast on divorce valuations
BVWire editors Sylvia Golden and Andy Dzamba joined moderator Tom Urquhart at the American Bar Association on a podcast to discuss Business Valuation in Divorce: A Case Compendium, a book co-published by BVR and the ABA.
Attorneys and Valuers Link Up at AAML/BVR Virtual Divorce Conference
Coverage of several sessions that include tips on managing client expectations in uncertain times and the new “abnormal” with respect to executive compensation.
BVU News and Trends November 2020
A monthly roundup of key developments of interest to business valuation experts.
Finkel v. Palm Park, Inc.
In LLC member dispute, court faces “conundrum” where fair value buyout seeks to avoid LLC’s dissolution and court leans on expert’s FMV valuation using net asset value approach premised on “orderly liquidation”; court notes FMV is based on hypothetical actors and transaction, not specific parties.
Court’s Fair Value Determination Leans Heavily on Expert’s Fair Market Valuation Premised on Liquidation
In LLC member dispute, court faces “conundrum” where fair value buyout seeks to avoid LLC’s dissolution and court leans on expert’s FMV valuation using net asset value approach premised on “orderly liquidation”; court notes FMV is based on hypothetical actors and transaction, not specific parties.
Pandemic Triggers Chances for Valuers in Exit Planning
One of the key takeaways from the recent ENGAGE 2020 conference sponsored by the AICPA was one of particular interest to business valuers. “The pandemic has created some temporary financial planning opportunities,” says Steve Siegel, JD, LLM, president of The Siegel Group. “If you have a client who plans to pass their business along to a child one day—while business values are low, this is a useful time to get a new business appraisal. If you wait, values may recover, and federal tax laws may be less generous to business owners seeking to transfer their interests to family members.”
Pandemic Triggers Chances for Valuers in Exit Planning
Remarks from the AICPA ENGAGE conference on the timely opportunities for financial professionals in exit/succession planning. This article gives some basics on how valuation experts can leverage their experience into this type of consulting.
New book on Colorado valuations for family lawyers and judges
The Financial Expert Guide for Family Law Judges and Attorneys, Colorado edition, goes a long way toward educating triers of fact, attorneys, and experts on the key valuation cases and legal principles in Colorado.
Court of Chancery sanctions use of asset approach in complex appraisal case
A low-profile appraisal case in front of the Delaware Court of Chancery raised important valuation questions, including how the court should determine the fair value of a nonoperating entity and how it should deal with the value of claims both parties brought on behalf of the company prior to the contested merger.
IRS addresses fears over change in appraisal reviews
Earlier this year, the IRS issued a memorandum that described changes to the way the IRS reviews appraisals prior to imposing a civil money penalty for valuation misstatements under IRC Section 6695A.
How to value a business and settle a divorce during COVID-19; divorce professionals share tips
How do you resolve a divorce case during COVID-19, when many businesses in all kinds of industries are coping with significant losses and continuing uncertainty over future performance? This was the topic of an excellent panel discussion that was part of the recent virtual AAML/BVR divorce conference.
How COVID-19 Is Impacting the IRS and Valuation Audits
Still reeling from the effects of the government shutdown and budget cutbacks, the pandemic has dealt another blow to the IRS that has affected how the agency selects and reviews tax returns that include valuations. A former IRS manager who dealt with valuations at the agency gives some interesting insights.
BVU News and Trends September 2020
A monthly roundup of key developments of interest to business valuation experts.
In re Happy Child World, Inc.
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
Uncertain Business Model on Merger Date Justifies Use of Income and NAV Models, Court Says
In an entire-fairness-cum-statutory-appraisal case involving nonoperating day care center whose facility was leased on merger date, court approves use of capitalization of earnings and NAV models and averaging results to determine fair value; business model was uncertain on merger date, court notes.
10 Takeaways From the AAML/BVR Virtual Divorce Conference
Family law attorneys, valuation professionals, and industry experts shared advice during the AAML/BVR Virtual Divorce Conference, which is ongoing and will continue tomorrow, September 24.
Beware of this loaded question about projections amid COVID-19
Projections have always attracted scrutiny, but the pandemic has intensified this attention.
AAML/BVR Virtual Divorce Conference starts September 9
It’s a whole new world for valuations in the context of marital dissolution, so don’t miss the Virtual Divorce Conference, presented by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR).
Mission Critical in Divorce: 10 Key Insights in 50 Minutes-a Free AAML/BVR Virtual Divorce Conference Preview
Brought to you by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR), this free preview for the Virtual Divorce Conference brings together attorneys, valuation professionals, and industry experts in a one action-packed, 60-minute session. Get short compelling lessons that you need to know now. This year’s conference focuses on the topics most impacted by divorce, and anyone serving business owners involved in matrimonial dissolution can get access to this premium preview ...