David Zarlenga of H&J CPAs explores fair market value and provides a better understanding of what it is and how it is used. When we talk about standards of value, we are defining the buyer and seller of a business. There are several standards of value, but the most common is fair market value. Fair…
The definition of property is pivotal in any valuation. The valuation is essentially an economic quantification of the bundle of rights that are either held or transferred in connection with the valuation project. The state law that governs the property in question, however, sets the bundle of rights to be considered. As such, they are…
Buy‐sell agreements can have an impact on the valuation of a business. However, the degree of the impact is dependent upon the purpose and use of the valuation. The agreement may be governing as a contract and binding on the parties, yet it may not be binding for defining value in a tax context. In…