Silver Lining to Tax Cloud Hovering over Small Business Values

Tax changes kicking in for 2013 have deflated small business values, but there are more transactions as buyers hope to get a good price, according to a new study from BizBuySell, the online business-for-sale marketplace.

Brokers surveyed say they are currently seeing an increase in the number of deals being completed, compared to the same…

Wandry v Commissioner is a Big Win for Gifting

Background – Wandry (donor) transferred gifts of specific dollar amounts of membership units in a limited liability company (LLC). Pursuant to gift documents, units of the donors’ LLC were transferred to their children and grandchildren. The documents specified that the fair market value of the units was unknown at the time of the…

What is Enterprise Value?

Enterprise value is the theoretical price an acquirer might pay for another firm. In essence, “step into the current owner’s shoes”.
Think of Enterprise Value as the potential takeover price. In the event of a buyout, an acquirer would take on the company’s debt, but would pocket its cash.

A simpler calculation for enterprise…

Fundamentals for Increasing the Value of Your Business

How is it possible that a web based technology company with no profit be worth millions more than a stable service or manufacturing business with several years of revenues and profits?  The answer to this “unfairness” can be found in the fundamentals of business valuations. All business valuations attempt to put a dollar value on…

Discount for Lack of Marketability

Valuation discounts are attractive because they allow for reductions in value that can be useful for a variety of purposes, including estate and gift planning. The discounts applicability and magnitude must be grounded in a careful analysis of the facts and circumstances of each case.

One such discount is the discount for lack of marketability…

Recent survey predicts strong M&A activity for 2012

What is your outlook?

The early news reports of 2011 predicted that the middle market was ‘picking up’ in M&A activity and ‘showing signs of improvement’ in business development. But this confident outlook became compromised by the effects of economical upheavals such as the downgrade of U.S debt and the consequences of the European debt…