How the New Tax Law Will Affect Business Valuations

William P. Allen, CPA/ABV, CFE

The Tax Cuts and Jobs Act is expected to have far-reaching effects that will vary significantly from company to company. In general, the new law lowers business tax rates. But it also reduces or eliminates various business tax breaks, while expanding others, either permanently or temporarily. Here's a brief summary of the changes and how they affect the process of valuing a private business interest.

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Court Issues Failed IPO Price to Value Minority Interest

Douglas P. Sosnowski, CPA/ABV, ASA, CFF

Courts prefer objective valuation evidence over subjective assumptions and predictions. But, when valuing a startup business with unproven intangible assets in a volatile market, objective data can be hard to find. Here's how the courts in Arizona found a way to handle a recent shareholder dispute that involved widely divergent expert opinions.

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IRS Withdraws Proposal to Curb the Use of FLPs

Louis J. Cercone, Jr., CPA, CFE, CFF, ABV, ASA, CVA

The Treasury Department finally abandoned its controversial proposed regulations on liquidation restrictions for gift, estate, and generation-skipping transfer taxes. This is a major victory for family businesses. Here's why the proposal was withdrawn and how estate planning might change under the GOP tax reform framework. This article also provides some best practices for the continued use of family limited partnerships and other family-controlled entities.

 

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Financial Experts Facilitate Business Interruption Claims

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Assets transferred to a limited partnership in an effort to remove them from an estate were, in fact, included in the value of that estate, the U.S. Tax Court ruled in one case. The reason: The deceased woman retained her rights related to the assets until her death and the transfer was made less than three years before her death.

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Beware of Valuation Cons

Douglas P. Sosnowski, CPA/ABV, ASA, CFF

Expert witness testimony can sometimes make or break a case. But if your financial expert is unable to survive a Daubert challenge, the court may not be presented with critical evidence that could otherwise help prove (or dispute) damages or value. A recent federal district court case shows how a comprehensive written report can demonstrate that experts used proven financial theories and techniques to arrive at their conclusion.

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Ensuring a Peaceful Succession With a Buy-Sell Agreement

William P. Allen, CPA/ABV, CFE

A wave of consolidation in the music publishing sector. Several multimillion-dollar music portfolios are reportedly up for sale. But are they asking too much to attract serious buyers? When it comes to valuing intellectual property assets, experts don't rely on gut instinct. Here's an overview of tried-and-true methods used to value copyright portfolios and other types of intellectual property. 

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Timely Expert Reports Are Critical to Discovery

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Assets transferred to a limited partnership in an effort to remove them from an estate were, in fact, included in the value of that estate, the U.S. Tax Court ruled in one case. The reason: The deceased woman retained her rights related to the assets until her death and the transfer was made less than three years before her death.

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Music Industry Illustrates How to Value Intellectual Property

William P. Allen, CPA/ABV, CFE

A wave of consolidation in the music publishing sector. Several multimillion-dollar music portfolios are reportedly up for sale. But are they asking too much to attract serious buyers? When it comes to valuing intellectual property assets, experts don't rely on gut instinct. Here's an overview of tried-and-true methods used to value copyright portfolios and other types of intellectual property. 

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