Tax Valuations
Private Company Stock
For privately held businesses, especially
family-owned firms, the estate tax bite can be substantial. It
may even force a business owner's heirs to sell the business.
With careful estate planning, owners
of private businesses can often transfer wealth to their heirs
without incurring estate or gift taxes. To maximize the amount
that can be transferred without subjecting assets to estate taxes,
advisors often recommend that business owners transfer stock to
the next generation.
Transferring illiquid stock also reduces
transfer-tax liability, mainly because the stock's value is discounted
for lack of liquidity.
Pluris Valuation Advisors uses all standard,
accepted valuation methods, including cost, income and market
approaches, to arrive at defensible valuations. Data from Bloomberg
and other sources is used to derive market multiples.
The size of the discount taken is typically
the most contentious issue between the taxpayer and the IRS. Our
expertise in determining discounts and our exclusive access to
marketability data from the LiquiStat™ database, provides our
clients with a significant advantage and a defensible valuation.
For more information on our valuations
of private company stock, contact
Pluris today.
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