Maximize your wealth with business
valuations for estate tax planning, gifting, and buy
sell agreements. Our professional team offers
confidential consulting for business owners and their
professional advisors
Valuation Professionals serves the valuation needs of
closely held business owners throughout California,
Nevada, Arizona, Utah, Washington, Oregon, and Hawaii.
The goal of estate tax planning is
to provide liquidity and continuity of the business. Valuation Professionals
consults with attorneys, Certified Public Accountants,
and financial planners in developing succession plans
and estate and gift tax planning.
A smooth and stable transition is
paramount to maximize the business owner's investment. The first step
in succession planning is a valuation to assist in
creating an exit strategy. This involves creating a
plan for passing on responsibility for running the
company, transferring ownership and extracting the
business owner's
value.
Astute business owners realize the
importance of having buy sell agreements in place for
their companies but few realize the problems caused by
poorly thought out agreements. A well planned
regularly updated valuation of the business is
essential.
Also, for high net worth individuals
holding real property and marketable securities, a
valuation is essential to
preserve their assets for future generations.
An estate tax planning valuation
needs to be clear about the interests being valued.
Discounts from net asset value must be documented. The
most common discounts are for a minority interest and
the lack of marketability.
Our reports document the methods
used to arrive at these discounts to comply with the IRS
guidelines described in Revenue Ruling 59-60. Each situation is
different and a valuation professional needs to
carefully consider which discounts apply and to what
extent. The following factors affect the amount of
discount that may be applied:
Many business owners undervalue
their business entities for estate and gift tax
purposes. This can have severe financial
consequences. In determining the fair market value of
a business entity the IRS requires more than a simple
calculation. The methodology, theory and empirical
evidence behind the fair market value determined in
accordance with Revenue Ruling 59-60 must be well
documented.
Business owners, high net worth
individuals, and executors should substantiate the
estate and gift tax planning process by engaging a qualified attorney, a financial planner with tax
knowledge, and a qualified valuation firm to value
their assets. This will ensure that the value
determined is supportable.
Contact us today for a
consultation.
“I’ve
worked with Valuation Professionals for almost 10
years. Robert Wietzke is extremely knowledgeable and
professional, and is truly an expert in the area of
business valuations. I recommend them to other estate
planning and business attorneys who are seeking a
quality appraisal at a fair cost.”
—
James K. Leese,
Esq., Ferruzzo & Worthe |
