Back up strategic decisions with formal feasibility studies
A
formal feasibility study can dramatically improve a strategic decision’s
outcome and decrease risk — whether the decision involves investing significant
capital in a project, altering the company’s long-term business plan, launching
a new product line or outsourcing production. This article explains how
professional valuation analysts can assist a multidisciplinary team in
generating the data and analysis needed to better support business decisions.
Marketability discounts: Knowledge is half the battle
Discounts
for lack of marketability are among the most subjective, complex and debated
elements of a private company’s value. This article explains the basics of
marketability discounts and discusses some common methods valuators use to
estimate and support them. It also uses two recent Tax Court cases involving
marketability discounts to illustrate some of the relevant issues.
IRS tightens the reins on business valuations
The IRS has cracked down on abusive
tax reporting and upgraded its Business Valuation Guidelines. Understanding IRS
preferences can minimize taxpayer liabilities and expedite settlement. This
article summarizes some of the revisions to the IRS guidelines and provides
tips for taxpayers wishing to ensure their valuation reports withstand IRS
scrutiny.
Good planning can avert postdeal disputes
Too often, business investors ignore the potential for postdeal
disputes when buying and selling private business interests. This brief article
offers a list of questions the parties involved can use to ensure they address
potential problems up front — before they wind up in court.
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