Business Valuation Case Studies

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Taxation
Financial Reporting
Transactions
Stock Ownership/ Option Plans
General Business
Litigation

Taxation

1) Estate Taxes - Assisted the estate of the owner of an automobile dealership in determining the fair market value of the business for the purpose of preparing an estate tax return in accordance with Internal Revenue Service Revenue Ruling 59-60.

2) Gift Taxes - Assisted the owner of a wholesale and retail distributor of petroleum and related products business in determining the fair market value of the business for the purpose of preparing a gift tax return in accordance with Internal Revenue Service Revenue Ruling 59-60.

3) Charitable Contributions - Assisted the owner of a closely held business in determining the fair market value of the company for the purpose of making a charitable contribution to a qualifying entity in accordance with Treasury Regulation §1.170.A-13(c)(3)(ii).

4) Calculation of Potential Built-In Gains Tax Resulting from C to S Corporation Conversion - Assisted a closely held retailer in determining the fair market value of the company as of the prospective date of conversion from C to S Corporation status for the purpose of determining potential built-in gains tax exposure in accordance with Internal Revenue Code §1374.

5) Purchase Price Allocation - Assisted a closely held mutual fund management company in determining the allocation of the purchase price proceeds realized from the sale of the company for income tax reporting purposes, including allocation to personal goodwill, covenant not-to-compete, and a management contract.

Financial Reporting

1) Goodwill Impairment Analysis - Assisted a closely held electrical and mechanical contractor in determining the fair value of the Company’s reporting units and impairment of goodwill in accordance with SFAS 142.

2) Goodwill Impairment Analysis - Assisted a closely held propane distribution company in determining the fair value of the Company's reporting units and goodwill impairment in accordance with SFAS 142.

Transactions

1) Sale of a Business - Assisted a closely held national distributor of specialty tools in assessing a purchase offer from management, as well as in determining investment value for purposes of negotiating a prospective sale with a strategic buyer.

2) Purchase of a Business - Assisted a publicly traded energy company in determining the value of a prospective acquisition and in performing due diligence of the acquisition target.

3) Shareholder Buy-In - Assisted a medical practice in determining the buy-in price for a newly-admitted shareholder and in structuring the transaction for the most advantageous tax treatment.

4) Fairness Opinion - Assisted a Committee for a proposed ESOP for an interactive entertainment hardware and software manufacturer’s representative in determining the fair market value of the company’s common stock to assess the feasibility of the proposed transaction and also prepared a fairness opinion.

Stock Ownership / Option Plans

1) Employee Stock Ownership Plan - Assisted a closely held media buying firm in determining the fair market value of the minority interest held by the ESOP to assist with the firm’s administration of the ESOP in accordance with Internal Revenue Code §401(a)(28)(C) of the Internal Revenue Code of 1986, as amended.

2) Stock Option Incentive Plan - Assisted a closely held Internet e-commerce company in calculating the fair market value of its common stock to assist the company in determining the value of stock options granted to employees as part of an incentive-based compensation plan.

General Business

Intellectual Property - Assisted a 501(c)(3) charitable organization in determining the fair market value of certain trade secrets and computer software which the organization was considering purchasing from third parties.