A smart
approach to valuing intellectual property
Determining
intellectual property’s value has become increasingly important for many
businesses, whether for infringement litigation, income tax reporting,
accounting compliance, bankruptcy, divorce or strategic decision-making
purposes. This article defines intellectual property and explains how appraisers
may modify the three traditional valuation approaches in valuing
it.
Preparing a
business for sale
Business owners who
plan ahead sell their businesses faster and for more than those who neglect
maintenance and administrative chores. This article notes some steps that can
help owners prepare their businesses for eventual sale, including preparing
reliable, transparent financial statements, setting up formal administrative
controls and cultivating a positive corporate culture. The article shows how
valuators can help with many facets of this process.
Court rejects tax-affecting
of S corporation earnings — again
Are S
corporations worth a premium over otherwise identical C corporations? This is an
ongoing debate among valuators, attorneys, taxpayers and the IRS. The correct
answer depends on the facts and circumstances of the valuation assignment. This
article discusses a recent case, Dallas v. Commissioner, where the Tax Court
rejected the tax-affecting of S corporation earnings, concluding that all
factors affecting S corporation tax-affecting should be carefully considered on
a case-by-case basis.
Section
409A and the value of your stock plan
Internal
Revenue Code Section 409A restricts compensation deferrals for income tax
purposes. The restrictions apply to most types of deferred equity-based
compensation, including stock options, stock appreciation rights and phantom
stock plans. This brief article explains that plan sponsors, employees and board
members who fail to meet the timing and form requirements of Sec. 409A may face
substantial risks. It notes that stock valuations prepared by qualified,
independent valuators can limit exposure.
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