Deriving reasonable values for business interests is often the critical starting point in the business planning setting. The McGinty Consulting Business Valuation Group is comprised of professionals with broad-based business and analytical financial skills geared toward addressing a wide array of business valuation issues. These issues typically include:
Estate & Gift Tax Planning
A necessary first step in designing a succession plan for a closely held business is the derivation of the value of the business at hand. Similarly, the estate planning process is dependent upon justifiable values of the client's assets to assure that appropriate tax planning measures are taken. We work closely with business owners and estate planning attorneys to assure that reasonable and supportable values are ascribed to these assets both for lifetime planning and for the purpose of administering estates. We also have extensive experience in working closely with family business owners and succeeding generations to implement the business succession plan.
Business Sale/Acquisition Advisory Services
Frequently the purchaser or seller of a business has his or her own preconceived notion of how to value his or her business, or a target business. We assist both acquirers and sellers of businesses in deriving independent, third party valuation analyses in the sale and acquisition setting. In addition, we can assist with the facilitation of the sale of a business by providing general transaction consulting and assistance with selecting advisors to help complete the transaction. As well as access to our data base of advisors and prospective acquirers.
Business owners frequently require valuation analyses for the purposes of structuring or restructuring their business entity. These instances include:
- The drafting of a shareholder or buy/sell agreement that fixes the value of owners' interests for the purposes of death, disability, retirement or departure;
- The redemption of an individual owners’ interest; and
- The restructuring of a single entity with various business units into separate entities.
Income Tax Planning
Income tax laws have become a necessary ingredient to consider in structuring a wide variety of transactions. We have extensive experience preparing business valuation analyses to support the structural foundations of many business transactions. These analyses often assist advisors with supportable purchase price allocation data for tax and financial reporting purposes.
Valuation Opinions for Fractional Ownership Interests
Increasingly, business planning involves quantifying the values of fractional interests in entities, such as corporations, partnerships, etc., as well as fractional interests in underlying assets themselves, such as ownership via joint tenancy or tenancy in common. The proper valuation of a partial interest in an asset can be of critical importance in the estate and gift planning setting. We have extensive experience in providing opinions regarding the proper application of valuation discounts to fractional interests in entities, as well as to common undivided ownership interests in a variety of assets.
Within the dispute resolution process, or as a substitute to litigation, we provide independent third party business valuation analyses to assist conflicting parties in reaching a resolution to their dispute. These mediation services have proved most valuable in the business and marital dissolution setting, wherein the parties to a business break up or divorce action can jointly agree to seek the independent views of a neutral third party, rather than incur the substantial costs and time delays of multiple valuation professionals and the litigation process. We have worked closely with attorneys in a variety of economic disputes to seek fair and equitable results in an efficient and cost effective manner.
Employee Stock Ownership Plan Valuations
In order to protect the employee participants in an Employee Stock Ownership Plan, Federal Regulations require the stock of the subject company to be independently valued on a regular basis. We provide business valuations in the ESOP setting in a wide variety of industries.
Additional Consulting Services
Along with the valuation and succession planning services that is the focus of our business, we frequently provide clients with additional consulting services including:
- Assistance with the preparation of business plans;
- Assisting prospective business owners with research regarding their target industry and/or products.
- Advising business start-ups through the capital raising process, i.e., assisting with private investors and/or bank financing discussions.