Valuation Services

FAMILY LAW AND MARITAL DISSOLUTION

As part of the divorce process, the most complicated aspect is often determining the value of assets to be divided between the spouses. These assets could include business interests, retirement/pensions plans, stock options or other difficult to value assets. Our experts combine knowledge of forensic accounting techniques with business valuation expertise to ensure that our clients obtain a fair and equitable resolution.

SHAREHOLDER OR PARTNER DISPUTES

Shareholder disputes often involve dissenting shareholder actions or oppressed shareholder cases, but can also result from breach of contract, buy/sell agreement interpretations/violations, request for corporate or partnership dissolution or wrongful termination claims. Cases of this nature are governed at the state level and frequently require a valuation analysis to determine the value of the dissenting or oppressed shareholder’s interest in the company. We work with your attorney to resolve significant valuation issues specific to your case, prepare reports for trial, and testify as needed.

ESTATE AND GIFT TAXES

One of the most common reasons to need a business valuation arises from gift and estate tax situations. Gifts of ownership interest by living owners can create a potential gift tax liability while business interests inherited following an owner’s death can result in estate tax issues. By obtaining a business valuation from a qualified expert, a taxpayer is acquiring a robust defense in the case of an audit by the IRS or other state-level taxing authority which may even allow them to avoid certain penalties in the event the business interest is determined to be undervalued. Our experts have the experience and professional certifications needed to meet and exceed the IRS requirements for “qualified appraisers.”

STOCK OPTION VALUATION (IRC 409A)

Start-up companies often issue stock options to management and employees as incentive or in place of cash compensation. However failure to properly value the stock in accordance with Internal Revenue Code (“IRC”) Section 409A can result in the immediate taxation of the options as well as penalties. To avoid these consequences, the company must obtain an independent appraisal of the options at least annually. Our experts have the knowledge and experience with the valuation methodologies and options pricing models ensure that you meet the necessary regulatory requirements.

BANKRUPTCY, INSOLVENCY, AND REORGANIZATIONS

Valuation issues are often amongst the most critical issues for stakeholders during the bankruptcy process. The question of valuation plays a key strategic role for decisions to be made by both creditors and debtors. Our experts can perform solvency analysis, review reorganization plans, and value creditor collateral interests.

Utilized options pricing models to calculate the fair market value of stock options in accordance with Internal Revenue Code Section 409A. We were retained by a software development startup company to determine the value of employee stock options, which included various classes of common and preferred stock. Because the company had multiple classes of equity, we employed the Options Pricing Model (“OPM”) to allocate the calculated value of the company’s total equity to the various classes.

Provided business valuation and consulting services relating to estate and succession planning family-owned business and real estate assets. We worked with the family’s attorneys, accountants, and outside appraisers to assist in developing the most beneficial structure for the long-term preservation and growth of the family’s assets.

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