Valuation Services

Tax Planning & Compliance Valuations

Why are valuations needed for tax planning and compliance?

Owners of closely-held companies will frequently engage CPAs and tax attorneys seeking advice to minimize their company’s taxes and efficiently transfer assets to their beneficiaries. The fair market value of the company’s stock often becomes a critical component in these strategies.

A valuation from an independent business valuation firm, like BVI, provides well-substantiated support for the appropriate value of the firm’s stock and offers a critical defense if the company’s fair market value is challenged by the Internal Revenue Service or other taxing authority.

When are valuations necessary for tax planning and compliance?

Whenever business owners and executives are implementing a plan that requires an estimate of the fair market value of the company’s shares, including:

+ Estate tax return
+ Gifting to family members or other beneficiaries
+ C Corporation to S Corporation conversions
+ Stock option and deferred compensation plan adoption and execution
+ Acquisitions by non-profit organizations
+ Recapitalization or reorganization

The Business Valuation, Inc. Advantage

BVI has completed hundreds of valuations ranging from start-up companies to multinationals that generate more than $1 billion in annual revenues. Our experience, technical expertise, and credibility in presenting well-documented valuation reports to the IRS are some of the primary reasons that BVI is trusted as the valuation firm of choice for many business owners, CPAs, and attorneys.

BVI has experience in a wide variety of industries including healthcare, business services, technology, construction and engineering, food services, consumer goods, distribution, transportation and logistics, financial institutions, and others. We also have invested significant resources to develop our valuation process so that we use the time of business owners, executives, and their advisors efficiently.

Who Can Benefit from Tax Planning and Compliance Valuations?

A well-documented determination of the fair market value of a firm’s stock is critical to many tax strategies. BVI’s services provide business owners, CPAs, and attorneys confidence that the value of the company’s stock being used for tax planning is determined using appropriate valuation methodologies and well-supported by the documented facts and circumstances of each specific case. With a BVI valuation, the firm’s advisors have the necessary information they need to respond to challenges from the Internal Revenue Service or other taxing authority.