If the marital estate includes an ownership of a closely held business, the value of the business needs to be determined for marital dissolution purposes. The definition and standard of value varies from state to state as does the treatment of goodwill. SVA has experience that allows us to work with your local attorney on any state-specific valuation issues that may arise.
In addition, SVA’s valuation experts are trained and experienced in handling the unique financial challenges presented in collaborative divorce cases.
For gift and estate tax purposes, the fair market value of property transferred to another party is measured on the date of the transfer based on the “willing-buyer, willing-seller” test. Assets, without a readily ascertainable value, must have a value determined using methods recognized by taxing authorities and courts as providing a valid result.
SVA assists clients through all phases of the valuation process including audit and tax court proceedings. We work directly with the client’s attorneys, accountants and estate planning professionals to resolve issues that arise including valuation discounts and premiums, pass-through entity and built-in gains tax calculations, and issues related to Family Limited Partnerships (FLPs).
Debt financing is often part of the equation for many business transactions, whether acquiring a company or purchasing significant assets. SVA works with our clients and their lenders to provide valuation support for the debt's collateral.
If a Small Business Administration (SBA) guaranteed business acquisition loan is for more than $350,000, or if there is a close relationship between buyer and seller, the lender must obtain an independent business valuation from a qualified and credentialed source. SVA’s valuation experts are a qualified source as defined by the SBA and are experienced at working with lenders to provide the necessary support and documentation for SBA loans.
When a business or bundle of assets is acquired, a valuation is necessary to allocate the purchase price to the component parts for tax purposes and accounting under ASC 805. SVA assists clients in determining and allocating the value to acquired intangible assets, including trademarks, trade names, non-compete agreements, internet domain names, customer lists and relationships, copyrights, contracts, patents, trade secrets, assembled workforce and goodwill.
Subsequent to acquisition, SVA assists clients in ASC 350 testing for the impairment in value of indefinite assets including goodwill.