Major Tax Issues Impacting Private Equity Firms
Various forms of executive compensation have become popular, resulting in much scrutiny, particularly in how these forms of compensation are taxed.
Chemical
A leading international producer of nitrogen products acquires a nitrogen manufacturing company requiring a valuation for allocation of purchase price according to ASC 805.
Carried Interest Popular Form of Incentive Compensation
Since carried interest is tied to performance, it is an effective way for employers to recruit and retain employees.
Valuing a Minority Shareholder’s Common Stock Amid Capital Restructurings
Valuing investments in private companies requires a flexible approach.
Valuation Integral to Sec. 409A Requirements
The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.
Professional Services
VRC was asked by the attorneys representing the seller to provide multiple common stock valuations on a retrospective basis that would withstand a Big 4 audit review under tight deal closing deadlines.
Current Practice Issues Pertaining to Sec. 409A
In the original Practice Aid, there was no mention of the back-solve approach. Since then the technique has come into widespread use.