A living trust is a popular consideration in many estate strategy conversations, but its appropriateness will depend upon your individual needs and objectives. What is a Living Trust? A living trust is created while you are alive and funded with the assets you choose to transfer into it. The trustee (typically you) has full power to manage…
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How Industry Fits Into the Valuation Puzzle
IRS Revenue Ruling 59-60 is an essential building block of modern appraisal 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 function of risk…
Timing is Everything: How to Handle Subsequent Events in Valuation
Similar to balance sheets, business valuations are prepared as of a specific date. Sometimes a valuation’s effective date is in the past, and events have occurred after the valuation date that would have impacted the company’s value if investors knew (or could have known) about them beforehand. Such retrospective valuations are common in litigation and…