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Black and Blue, Inc. 

Impaired businesses need a thorough assessment of economic damages 

From breach of contract to outright negligence, commercial torts often give rise to economic damages. In such a case, a valuator needs to put a precise dollar amount on how much business the company stands to lose. This article describes the process by which valuators reach a succinct theory of damages and calculate lost profits or diminished business value.

The future is now

Many business owners inadequately address succession planning

Succession planning is an important issue that often goes unaddressed by business owners. With an expected buyers’ market as baby boomers age, coming up with a viable exit strategy is even more important. This article discusses the ways valuators can work with business owners to develop comprehensive succession plans, emphasizing the importance of establishing reasonable valuation expectations and devising creative buyout terms.

Tax Court decision affects valuation adjustments

This article takes note of a landmark case, the Estate of Jelke v. Commissioner, in which the Tax Court confronted three contentious valuation adjustments: built-in capital gains tax, minority interest discounts and marketability discounts. The article shows how the case demonstrates the importance of linking empirical study findings with subject company characteristics when estimating valuation discounts.

Shareholder disputes: Involve a valuator early

This brief article explains how a valuator’s proactive involvement in a shareholder dispute promotes efficient strategy and may even save time and money. It points out several ways valuators can help in the early stages of a shareholder dispute, including improving the efficacy of discovery and increasing the likelihood of settlement.

The great S corporation debate

Should their earnings be tax-affected?

Unlike C corporation dividends, S corporation distributions aren’t subject to personal taxes. In recent years, valuators, the IRS and corporate attorneys have debated whether the tax advantages of S corporation status translate into higher values, all else being equal. This article presents the major points of this debate, noting that further court decisions may be necessary to ultimately resolve this issue.