H&J CPA

24 Hour Response Time | Over 25 Years of Experience | Lasting Relationships

Where Is the Excess Earnings Method Most Relevant?

The excess earnings method of valuation is the result of Appeals Revenue Memorandum 34, issued by the Internal Revenue Service.

Its intended result was to separate the value of the tangible assets from the value of the intangible assets. Although created by the IRS, this method is rarely if ever used in tax valuations.

However, it is most often seen in valuations associated with matrimonial matters. In fact, many jurisdictions require this method, when valuing the business in a matrimonial matter.

Contact one of our credentialed professionals to assist you in better understanding the impact of “the Excess Earnings Method” on value for the case at hand or any other valuation or litigation needs.


David F. Zarlenga, CPA\ABV, CVA, CFE

Mr. Zarlenga is a Certified public Accountant with over two decades of experience. Mr. Zarlenga is regularly sought after for a variety of valuation engagements including those involving litigation as well as the estate and gift tax arena. He also is experienced in merger and acquisitions and fraud and forensic accounting.