Tax Court Allows Tax-Affecting for the Discounted Cash Flow Method in Pierce v. Commissioner
Pierce v. Commissioner is the latest case to be decided that addresses the appropriateness of including income tax in the valuation of a privately held company organized as a pass-through entity. The decision also addressed financial forecasts, company-specific risk, and excess working capital, among other elements of business valuation.
Conflict Transactions and the Evolution of the Fairness Opinion Landscape
When navigating a conflict transaction, fiduciaries must demonstrate independence, informed judgment, and proper procedure. A fairness opinion, when properly executed, can deter or defend against litigation and serves as evidence of proper governance process.
The Application of the Relief from Royalty Method for Intellectual Property Valuation
The relief from royalty method is a generally accepted valuation method for the analysis of intellectual property assets that may generate royalty income. Valuation analysts applying the relief from royalty method should be familiar with the procedural steps and key considerations of the method.
Related Articles
Perspectives
April 2025 Perspectives
- Nuances with Respect to Valuing a Controlling Ownership Interest
- Proposed Regulation Changes to Circular 230
- Estate Planning and Buy-Sell Agreements After the Connelly Decision
January 2025 Perspectives
- The Potential Application of Artificial Intelligence in Business Valuation
- Providing Support and Rationale for the Estimation of a Company-Specific Risk Premium
- Comparison of the Business Valuation Development Standards Among Organizations
October 2024 Perspectives
- Key Considerations in the Valuation of Carried Interest from a Tax Perspective
- Digging in the Dirt: Performing Forensic Analysis of Financial Records for Valuation Purposes
- Jointly Retained Valuation Engagements: A Road Map for Trust and Cooperation