Allocating a portion of proceeds from the sale of assets of a private company to the personal goodwill of a major shareholder can result in significant tax benefits to buyer and seller.
A robust economic environment creates optimum valuation opportunities, but even a downturn creates demand for business valuers.
The workshop will explore private company valuation issues such as strategic value, purchase price allocations and more.
Mellen notes, “Considering the current level of M&A activity, I’ve seen a marked increase in demand for valuations of shares of privately held companies…”
During robust M&A cycles, donor-advised funds tend to become popular philanthropic vehicles.
Q&A: How is the Tax Cuts and Jobs Act impacting company value and valuation approaches?
What did the 2017 Tax Act change that would impact estate planning?
Business owners looking to sell must be mindful of these business valuation factors.
Monitoring value should be done in any economic environment, but the urgency to do so is greater when an economic upswing is several years old.