Business Valuation

Wandry v Commissioner is a Big Win for Gifting

On April 3rd, 2012, by David Lingler

Background – Wandry (donor) transferred gifts of specific dollar amounts of membership units in a limited liability company (LLC). Pursuant to gift documents, units of the donors’ LLC were transferred to their children and grandchildren. The documents specified that the fair market value of the units was unknown at the time of the transfer, but..

What is Enterprise Value?

On January 22nd, 2012, by Jeff Stautberg

Enterprise value is the theoretical price an acquirer might pay for another firm. In essence, “step into the current owner’s shoes”. Think of Enterprise Value as the potential takeover price. In the event of a buyout, an acquirer would take on the company’s debt, but would pocket its cash. A simpler calculation for enterprise value..

Fundamentals for Increasing the Value of Your Business

On January 13th, 2012, by David Lingler

How is it possible that a web based technology company with no profit be worth millions more than a stable service or manufacturing business with several years of revenues and profits? The answer to this “unfairness” can be found in the fundamentals of business valuations. All business valuations attempt to put a dollar value on..

Discount for Lack of Marketability

On December 16th, 2011, by Jeff Stautberg

Valuation discounts are attractive because they allow for reductions in value that can be useful for a variety of purposes, including estate and gift planning. The discounts applicability and magnitude must be grounded in a careful analysis of the facts and circumstances of each case. One such discount is the discount for lack of marketability..

Opportune Time for Estate and Gift Planning

On December 6th, 2011, by David Lingler

The federal estate, gift and generation-skipping transfer (GST) tax rules approved by Congress in December, 2010 are in effect during 2011 and 2012 only. The Treasury Department announced in February 2011 that President Obama’s 2012 budget proposals presume several important changes in the rules that will take effect on January 1, 2013. In “General Explanations..

Recent survey predicts strong M&A activity for 2012

On November 23rd, 2011, by David Lingler

What is your outlook? The early news reports of 2011 predicted that the middle market was ‘picking up’ in M&A activity and ‘showing signs of improvement’ in business development. But this confident outlook became compromised by the effects of economical upheavals such as the downgrade of U.S debt and the consequences of the European debt..