Articles

By avm February 5, 2016 In Articles
Proposed IRS regulations to eliminate discounts for family limited partnerships (FLPs) are to be released comment, but never seem to arrive.  The Obama Administration proposed changing the law over several annual budget proposals in order to restrict or eliminate valuation discounts on transfers of interests in family-controlled entities. The Administration was not successful in having the...
By avm February 5, 2016 In Articles
Since mid-2012, a steady increase in median revenue from $350,000 to $450,000, led to higher small business sale prices. Overall, this year's small business transaction data is following the trend of the past few years: steady activity along with improving financials. Although total transactions are on pace to fall three percent from peak 2014 levels,...
By avm February 5, 2016 In Articles
INTRODUCTION The valuation process typically does not assess the underlying company accounting policy and procedures. However, it is important for stakeholders to be aware of accounting conventions, and to vet them in any due diligence effort. The following is a discussion of different accounting policies and what risks they might introduce. Accounting guidelines allow companies...
By avm February 5, 2016 In Articles
BUSINESS GOODWILL IN CALIFORNIA FAMILY LAW Three issues must be addressed in valuing business interests for the purposes of property settlements in family law. They are: Personal vs. Institutional Goodwill (Personal and Professional Goodwill are similar in nature – personal applies to all types of companies and professional applies to professional practices (i.e. medical practice,...
By avm February 5, 2016 In Articles
Once a simple concept – reward employees for participating in the growth of a company’s value via stock options – incentive compensation has now become a very complicated area of tax regulation and accounting. At least since the creation of “qualifying stock options” in 1981, the IRS has required that options be priced at or...
By avm February 5, 2016 In Articles
Business Valuation, Its Complexity and Importance When it comes to estimating appraisal cost - business valuations for privately held businesses and professional practices generally require special expertise, familiarity with relevant court decisions, and appropriate appraiser qualifications.  Accounting conventions are not designed to determine the value of a company; instead they are used to state income...
By avm February 5, 2016 In Articles
The scope of a valuation engagement and its fee are dependent on the complexity of the business and the timely presentation of information to the analyst.  As with most professional services, the relationship between the client and the appraiser will typically be set out in a written agreement.  This agreement defines the scope of the...