Understand when to have a business valuation performed and what professional standards apply to these engagements.
Oftentimes, business owners need to know the value of their business or interests therein. Whether it is for succession or exit planning purposes, a measure of economic damages, or for income, estate, or gift tax purposes, knowing the value of the asset is critical to proper planning. This topic will help those advising business owners identify when it is appropriate to have a business valuation performed and what professional standards apply to these engagements. By understanding the different standards of value and valuation approaches, advisors can assist business owners in making critical decisions as well as making sure they are compliant with federal income, estate, and gift tax rules. These advisors will also be able to understand business valuation reports and schedules and provide meaningful input into the planning and compliance processes.
Learning Objectives
- You will be able to identify the characteristics and background of valuations.
- You will be able to differentiate the standards of value that may be applicable.
- You will be able to identify the reasons behind each valuation method.
- You will be able to identify the income approach to business valuation.
Agenda
Reasons for a Business Valuation
- Estate and Gift Tax Planning and Compliance
- Merger and Acquisition
- Buy-Sell Agreements
- Litigation
- Valuation vs. Calculation Engagements
Understanding the Business Valuation Process
- Appropriate Standard of Value
- Various Valuation Approaches
- Application of Discounts/Premiums
Income Approach
- Forecasting Future Economic Income
- Estimating a Discount Rate
- Discounted Cash Flow vs. Capitalized Cash Flow
Market and Asset Approach
- Guideline Publicly Company
- Guideline Transactions
- Adjusting Historical Assets to Applicable Value
Discounts and Premiums
- Discount for Lack of Control
- Discount for Lack of Marketability
- Others
Speakers
John T. Alfonsi, CPA/ABV/CFF, CFE, CVA, MST,
Cendrowski Corporate Advisors- Managing director of Cendrowski Corporate Advisors
- Practice is focused on taxation of high net worth individuals and investment entities including partnerships and S corporations
- Adjunct assistant professor at Walsh College where I teach courses in their Masters of Science in Taxation program (partnership taxation and tax accounting)
- Frequent speaker for the Michigan Association of Certified Public Accountants on topics covering taxation, business valuation, and forensic accounting
- Member of the AICPA, MICPA, ACFE, NACVA, MVCA
- B.A. degree in business administration from University of Michigan – Dearborn; M.S. degree in taxation
- Can be contacted at 866-717-1607 or jta@cendsel.com
Who Should Attend
This live webinar is designed for CPAs, accountants, attorneys, presidents, vice presidents, business owners and managers, CFOs, tax managers, tax preparers, and financial planners.
