We cannot emphasis enough
the importance of a fair and realistic value of your business. This is true regardless of the type of
business you own. Proper valuation for a
sole proprietor is just as important as it is to a closely held corporation and
a partnership. We can easily demonstrate
the importance of a realistic and fair, prudent valuation from the chart below.

BUSINESS VALUATION (per
share)

Case Taxpayers IRS Court Time To

Valuation Valuation Ruling Resolve

Bradley Est. $121.00 $430.00 $275.00 6 yrs. 7 mos

Goar Est. $200.00 $447.31 $275.00 3 yrs. 7 mos

Helmers Est. $500.00 $1,000.00 $900.00 5 yrs. 5 mos

Pendleton Est. $150.00 $400.00 $400.00 5 yrs. 4 mos

What
conclusions can we draw? First all these
cases took many years to resolve. The
effect was to tie up the business succession plans and of course increase the
estate’s costs. Additionally the courts ruled much higher than the taxpayer’s value. Consequently, it bears repeating to document
the value of your enterprise realistically.

Source: Foundations Of Estate Planning, The American
College,2014

We can do a
free, no obligation business valuation for you.
Please contact us.

As always,
thank you for your time and interest and continued success in the growth of
your business.