Authored By: Patrick Guthrie Valuing carried interest is a nuanced and essential process for fund managers, investors, and those seeking effective estate planning strategies. Carried interest, while often misunderstood, represents a future claim on profits from investment funds, making it an attractive tool for wealth transfer. However, given the complexity of fund structures, understanding how…

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Authored By: Will O’Donnell Valuing early-stage companies involves not only understanding their growth trajectory but also examining the broader forces shaping their markets. While traditional company stages and valuation methods provide a foundational framework, evolving market trends are redefining how these methods apply in today’s venture environment. Key trends are emerging that significantly impact early-stage…

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Authored By: Will O’Donnell Valuing early-stage companies presents unique challenges compared to established businesses. The complexity arises from multiple factors, including the company’s stage of development, the appropriate valuation methods for these entities, and the types of equity typically issued. In this article, we’ll break down these topics, including the latest guidance from the American…

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Authored By: Patrick Guthrie In the world of investing, trust is paramount. Investors want to feel confident that their assets are valued accurately and fairly. After all, the value of a portfolio can significantly influence investment decisions, risk assessments, and overall financial strategies. Accurate portfolio valuations serve as a critical foundation for this trust, enabling…

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In 2018, as part of the Tax Cuts and Jobs Acts (TCJA), the lifetime exemption limit for estate and gift tax purposes was increased to allow individuals to transfer double the previous amount over their lifetime without incurring taxes.   Presently, individuals can transfer up to $13.61 million, while married couples can transfer up to $27.22…

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In providing valuations for clients for a variety purposes, including financial reporting or estate and gift tax planning engagements, preparers should consider the impact on value of both State and Federal tax-related provisions. Tax provisions are frequently changing, whether it be due to a change in the Presidential administration or due to significant events such…

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On 12/7/2023, the American Society of Appraisers (ASA) held its 2023 ASA Fair Value Virtual Conference – Winter. Below are a few key takeaways from the conference: Valuation Credentials: The AICPA, ASA, and RICS will be sunsetting the Certified in Entity and Intangible Valuations (CEIV) credential. Ultimately, the decision was that this credential was too…

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For many years, investors in qualified small business stock (QSBS) have sought to take advantage of a little-known tax election under Section 1202 of the Internal Revenue Code (IRC).  Subject to certain eligibility requirements (outlined below), Section 1202 allows stockholders to claim an exclusion from the gain on the sale of QSBS for federal income…

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For almost 40 years, Fairness Opinions have been used as a critical part of the mergers and acquisitions process. A fairness opinion is a financial advisor’s opinion that states whether or not the financial terms of a proposed transaction are within a range of fairness, expressed from an economic point of view to one or…

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