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Comprehensive Business Valuation & Advisory Services


Make No Mistake: The IRS is Serious About Qualified Appraisals and Appraisers

The IRS and the Tax Courts are serious about requiring taxpayers to properly determine the value of non-cash estate assets, gifts and charitable contributions. To avoid having the value of an inherited, gifted or donated privately-held business interest challenged or rejected by the IRS, obtain a qualified business appraisal (valuation) from a qualified business appraiser.…

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Watch for Painful Provisions in Shareholder Agreements

I recently encountered the following instructions in a Shareholder Purchase Agreement for a Company that I was asked to appraise.  If this provision is ever followed, it will very likely result in some very painful results.  Here is a summary of the instructions relating to the business appraisal in the agreement: First, both the decedent’s…

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Cash: Can You Have Too Much of a Good Thing?

We have all heard the expression, “Cash is King.”  This is certainly true in business.  When a business runs out of cash, is unable to borrow more or acquire more from another source, the game is over, it is time to pack up all toys and go home.  The biggest reason that a business goes…

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Dealing with “Hiding the Ball” Scenarios

Occasionally, a client is not able to obtain all of the data necessary to clearly support the value of an asset needing to be appraised. This seems to happen most often in some type of litigation scenario. I recently received an inquiry from a former student in a business appraisal class that I taught a…

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How a Covenant not to Compete Affects Value

When someone sells a privately-held company, the buyer usually insists that the seller sign a covenant not to compete. In fact, in over 20 years of business sales and acquisitions, I have yet to see a purchase agreement without a covenant-not-to-compete (CNTC) provision. Now let’s say that your Company or its shareholders purchase all of…

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The Importance of a Credible and Competent Expert

The need for business valuation arises in many circumstances ranging from dispute resolution, estate planning, to the sale of a business to name only a few.  As in all professional disciplines, it is important to hire a knowledgeable expert who is abreast of current best practices and able to discern relevant facts that will determine…

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The Most Important Factor

There are a lot of important factors to address when reviewing any type of appraisal report.  However, in my opinion, the most important factor every appraisal must pass is….. THE SMELL TEST!  Does the value conclusion make sense and does it smell right? It is the appraiser’s job in every appraisal assignment to explain and…

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Short NOT Sweet

I am frequently asked to review another appraiser’s work and to state whether or not I agree with their conclusion of value.  Most of the time, this is not particularly difficult to do as the appraisal contains sufficient information to allow me to determine whether or not I agree with the analysis and the appraiser’s…

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