Business Valuation

For a business to protect, plan and maximize assets, it must understand its value, and how that value affects short- and long-term decisions. Jackson Thornton's Business Valuation professionals offer business owners and their advisors experience and expertise needed for efficient and accurate planning – often saving tax dollars in the process. Whether for limited liability companies, family limited partnerships or succession planning, we weigh income, asset and market value to properly ascertain worth and assess risk. This financial analysis helps maximize results in the present, while preparing for any potential threats in the future. In any case, our due diligence helps results stand up to scrutiny – whether in court or with the IRS.

Adequacy of Life Insurance
Allocation of Acquisition Price
Business Interruption
Conversion From C Corp to S Corp Status
Employee Stock Option Programs (ESOPs)
Loss of Business Value
Lost Profits
Marital Dissolution
Partner Disputes
Sale or Acquisition of a Business
Succession Planning
Valuations for Estate and Gift Tax Purposes

Adequacy of Life Insurance

How can you determine the appropriate amount of insurance without knowing the value of your business? We can provide the correct business valuation method to determine the amount of insurance that is needed. In addition, our team includes two insurance producers who can evaluate and advise you on the quality and type of insurance that will benefit you most.

Allocation of Acquisition Price

The allocation of acquisition price is the process of assigning fair values to all major assets and liabilities of an acquired enterprise following a business combination. This allocation is governed by various regulations and business valuation standards, many of which have recently undergone significant and complex changes, for both tax and financial accounting purposes. We understand the applicable regulations and standards and are here to help you make the best financial decisions possible.

Business Interruption

Our team has the knowledge and experience to guide you in evaluating and measuring business loss due to natural disasters as well as other business interruptions. We can assist you throughout the claim settlement process, including:

• Negotiation of loss between conflicting parties
• Estimation of initial reserve amount
• Application of coinsurance
• Treatment of extended period of indemnity
• Forensic reconstruction
• Legal support and CPA expert witness for courtroom testimony

Conversion From C Corp to S Corp Status

Valuations are needed to determine the amount of gain that must be recognized under §1374 upon a disposition of property by an S corporation that was formerly a C corporation and whose assets included appreciated property at the time of conversion to S status. We have extensive experience in providing valuations for corporate status conversion.

Employee Stock Option Programs (ESOPs)

An ESOP is a qualified defined contribution plan with the primary investment goal of purchasing and owning equity securities issued by the sponsoring corporation. An ESOP valuation is typically required at least annually and when certain transactions occur. We work with trustees to help ease the burden of ESOP administration by providing annual valuations in a timely and efficient manner.

Loss of Business Value

When a business fails as a result of certain actions, it may be necessary to determine the loss of business value. We can provide financial analysis and quantify damages that a business alleges to have occurred as a result of some breach of contract or duty by another party.

Lost Profits

When a business experiences a temporary reduction in sales or profits as a result of certain actions, a lost profits calculation may be necessary. We can analyze and quantify damages that a business alleges to have occurred as a result of some breach of contract or duty by another party.

Marital Dissolution

We provide a wide range of services including listing and determining the value of marital property, particularly business entities, determining spousal and child support, and providing expert witness testimony. It is important to work with an experienced professional as the standard of value and classification of property is decided by state statutes, locality-by-locality rules and court cases.

Partner Disputes

Disagreements among partners can be one of the biggest threats to the stability of a business. Whether you are facing a potential buy-out, merger, bankruptcy or other action, we can assist you through mediation or work with you on a one-on-one basis using dispute analysis to help resolve the conflict at issue.

Sale or Acquisition of a Business

Valuations in acquisition situations assist in both the tax and financial reporting determinations and the practical economic determinations. When working with us, you can be confident that we have the knowledge and experience to understand how businesses are bought and sold as well as the financial implications of various decisions.

Succession Planning

Studies show only a small percentage of family-owned businesses survive. Proper planning is one of the keys to success. Our trusted advisors have experience working with business owners, family members and management to maximize value and plan for the road ahead. Succession planning may involve gifting, sale of a business or estate transfer.

Valuations for Estate and Gift Tax Purposes

In addition to general valuation principles, approaches and methods, valuations for estate and gift tax purposes are subject to a constantly shifting body of laws, regulations, and court decisions. Valuations for estate tax purposes determine whether, and the extent to which, an estate owes federal estate taxes. The value of a business, as determined for the estate, also determines the tax basis of a business interest for the beneficiaries of an estate.

Certifications

Jackson Thornton Valuation and Litigation Consulting Group is an affiliate of Jackson Thornton Certified Public Accountants and Consultants.

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