Knowing the value of the business is essential for tax and succession planning. For most entrepreneurs, the business is the largest asset in the estate and key to legacy, estate, and succession planning. Further, it is impossible to fully control what is left unmeasured.
Determining the value of a business is not simple. The value of the business extends beyond the tangible assets listed on its balance sheet to its intangible value. Measuring intangible value requires expertise by independent, professionals possessing the requisite credentials with knowledge of the application of valuation processes including financial analysis, industry examination, experience, and appropriate laws and/or standards.
Valuation expertise is essential not only to reach accurate results in the case of personal planning purposes, but crucial when litigation or tax filings are involved. Valuation expertise requires more than careful industry research and financial analysis, but also understanding of Internal Revenue Code, Federal and State Law, Treasury regulations, and case Law.
Taxpayers involved in transactions that necessitate a business valuation must be appropriately prepared. Without a credentialed and thorough valuation, the IRS may issue a challenge, which shifts the burden of proof onto the taxpayer, as the IRS is presumed to be correct.
At TAVAS, the experienced team of professionals provide a process resulting in valuations capable of withstanding IRS scrutiny as well as ones legally defensible.