An irrevocable life insurance trust (ILIT) is a straightforward solution for a common estate-planning problem. Because life insurance is included in the taxable estate when a policyholder dies, it can be subject to estate tax. So if you have life insurance — and according to the Life Insurance Marketing and Research Association, more that half of…

There are three approaches to valuing a business: the cost, market and income approaches. In this article, we focus on the market approach, which the International Valuation Glossary — Business Valuation defines as: A general way of estimating a value of an asset, business or investment by using one or more methods that compare the subject to other assets,…

Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market approach,…