Shareholder Buyouts: Comprehensive Agreements Are Essential

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

How much will a departing shareholder receive when he or she leaves the company? The answer often depends on the details of the shareholders' agreement. But some buyout provisions are clearer than others. Ambiguity in a subcontractor's agreement led to a recent legal battle that left interpretation of the buyout provision to the discretion of the Pennsylvania courts.

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Comprehensive Business Valuation Reports Cover All the Bases

William P. Allen, CPA/ABV, CFE

In a recent shareholder buyout case, a business valuation expert went to bat but struck out. Why? His written report was unclear about whether an independent reasonable compensation analysis had been conducted, and whether valuation discounts for lack of control and marketability had been applied. Consequently, the court rejected his conclusion.

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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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