CPE: 8 hours
Category: Specialized Knowledge and Applications
Prerequisites: Knowledge in business valuation and finance recommended.
Advanced prep: None
Who should attend: CPAs, attorneys and business valuation practitioners.
Essential for CPAs who work with companies that ultimately will be transferred, this how-to course will tackle valuation specifics, including the income approach, market approach and underlying asset approach.
You will also review how discounts impact value, including discounts for lack of control, lack of marketability and others. Learn how to structure deals and maximize a company's value in preparation for its sale, as well as how family dynamics impact planning considerations.
- Determine what a business is worth and how being an owner with control vs. an owner without control impacts value.
- Identify transition options, from selling the business outright to implementing transition strategies.
- Recognize tax issues associated with different transition options, including any impact of 2015 tax law changes.
- Determine how family dynamics impact planning considerations.
- Identify how to start the planning process early and tools to make the process more effective.
- Determining a business entity's worth
- How and why a minority interest may be worth less than a pro rata portion of the whole
- How discounts impact value
- Selling outright; selling or transitioning to employees; selling or gifting to family members
- Deal structures
- Discounting on value transfer
- Determining if the next generation is prepared and qualified to take over the business
- Other family assets
- Using buy/sell agreements to plan for ownership changes and help avoid shareholder and family disputes