Case Study - Estate Tax Planning - Intelek Business Valuations United States

Company X (company details removed for privacy purposes)

Engaged by Company X owner’s attorney in early 2022 to prepare a valuation for estate tax planning purposes as of December 31, 2021.
Timely and accurate delivery was key as a prior valuation was poorly performed, which the attorney could not use. Moreover, the trust launch deadline was about to be missed, resulting in millions of dollars of penalties/additional taxes.
The owner contemplated a transaction with a dominant player in the industry, which while in the due diligence stage was not yet formally announced nor completed.
A recent IRS Chief Counsel’s guidance seemed to suggest that any transaction after the valuation date should be included in the valuation analysis.
Our deep understanding of the Fair Market Value definition and other applicable valuation issues discussed in the IRS guidance allowed us to conclude that that guidance didn’t apply to Company X and to complete an accurate valuation of the business, preventing an over-statement of Company X’s value by millions of dollars.
Our valuation conclusion delivered on time with a quick turnaround was accepted with no objections by the client’s attorney.

Case Study – Estate Tax Planning