By what “standard of value”should a business be appraised? That may sound like a peculiar question at first blush, but it has a significant meaning when determining the value of a private business interest. Most often, people who are unfamiliar with the nuances of business valuation recognize the term “fair market value” (FMV). However, there…
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Important Tax Figures for 2025
The following chart provides some important federal tax information for 2025, as compared with 2024. Social Security/ Medicare 2025 2024 Social Security Tax Wage Base $176,100 $168,600 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2% 6.2% Employee portion of Medicare 1.45% 1.45% Individual Retirement Accounts 2025 2024 Roth IRA Individual,…
How Industry Fits into the Valuation Puzzle
IRS Revenue Ruling 59-60 is an essential building block of modern business valuation practice. It identifies “the condition and outlook of the specific industry” as one of the factors to consider when valuing a private business. But how do investors measure industry risk and how does it fit in the valuation paradigm? Value is a…