Industry Articles
Valuations
How would a disaster impact your business?
Disasters happen. Have you considered what will happen if your firm is unable to resume normal operations over an extended period of time? Business insurance may provide a reasonable backup plan.
Court rules on use of LLCs as estate planning tool
Unless it is overturned on appeal, a decision by the U.S. Tax Court could have repercussions that estate planners and tax advisers have not yet fully comprehended. At issue are some questions about the use of single-member limited liability companies as estate planning tools. The specific issue addressed by the court is whether the so-called check-the-box regulations cause an entity that is disregarded for federal income tax purposes to also be disregarded for federal estate and gift tax purposes.
The problem with transaction multiples
Business owners, appraisers, auditors, judges and other parties affected by appraisals sometimes have a lapse in judgment when considering “comps,” guideline companies that have published valuation multiples. Any measurable differences between a subject company and its comps can be – and typically are – used to exclude transactions that would otherwise provide useful information. What are appropriate benchmarks for managing a private company and determining its value?
