The Valuation Of Privately-Held Businesses [antikvár]

Preface If there is an area in the field of taxation where uncertainty is the hallmark, it is the area of valuation of an interest in a closely held business. Valuation causes frustration to accountants, who are used to adding and subtracting precise numbers and coming up with results that produce sheets that are in balance. It also frustrates lawyers, who are used to finding cases in point that, when taken in series, produce a brief that neatly proves their client's case. Probably the most frustrated of all is the closely held business owner; uncertainty reigns supreme, and often the financial life of a business and a family hangs in the balance. Every company to be valued has its own set of facts and circumstances, and each valuation is unique, different from every other valuation. Two companies in the same business with almost identical numbers can have significantly different values because of just one fact difference. No set of general rules or volumes of books can bring out the importance of unique facts. The valuation process is an art, not a science, but just as art has its discipline, so too does valuation. The discipline lies mainly in approaches and techniques, rather than in some magic formula or an all-too-easy reference to market prices of so-called comparable businesses that are publicly traded. The inquiry is not only on how to select the right approach, but also on how to attain the desired results for the business owners, their families, and sometimes, their heirs. As you read this book, bear in mind that a valuation is always: 1. as of a particular point in time— A difference of only a few months in the valuation date can introduce (or eliminate) a fact of crucial significance. Events affecting the perceived value of the business, such as the loss or gain of a