Valuation Services

Companies and/or industries that we have extensive experience in include, but are not limited to:

Gift/Estate Tax

Mack Business Appraisals estate and gift tax valuation services assist business owners and other high net worth individuals in preserving their wealth. We work with attorneys, certified public accountants, financial planners and bankers to create effective estate and gifting plans to realize your overall objectives. Our firm has extensive experience in reviewing Partnership Agreements and Operating Agreements to make sure that provisions of those Agreements do not conflict with our application of appropriate discounts in arriving at the fair market value of your investment.

We specialize in providing discount studies (lack of marketability and/or lack of control) for family limited partnerships and limited liability companies. We also perform business valuations of equity interests in privately-held operating companies. Our gift and estate tax valuations are prepared in accordance with Revenue Ruling 59-60 and are provided in a report format that satisfies the adequate disclosure rules set forth by the Internal Revenue Service (IRS).

Our gift and estate tax reports are commonly used for estate planning, filing of estate and gift tax returns, implementation of buy-sell agreements, key person insurance funding and charitable gift transactions.

FASB 141/142

Statement of Financial Accounting Standards (SFAS) 141 and 142 were enacted by the Financial Accounting Standards board (FASB) in recent years. SFAS 141 requires all companies to account for business combinations using the purchase method (the pooling method was eliminated). Furthermore, all intangible assets can no longer be “lumped” into goodwill but instead all intangible assets acquired that are identifiable and have a finite life must be assigned a value and amortized over their estimated useful life. The value remaining after identification and valuation of all intangible assets is then assigned to goodwill. Goodwill, however, is then subject to periodic impairment reviews (under SFAS 142).

The recent accounting and financial scandals (e.g. Enron, Arthur Anderson, etc.) have heightened the scrutiny of accounting practices and audit firms. There is a strong push for complete independence, whether actual or perceived, in all dealings. Thus, it is important to employ an independent valuation firm to assist in apportioning the value of an acquisition to the assets and to assist in determining whether or not there has been goodwill impairment (generally annually).

Mack Business Appraisals has significant experience and expertise in providing valuations for SFAS 141 and 142. We work with your accountants to ensure that you receive a well-supported valuation that provides your accountants with the information needed to issue your financial statements.

[Click here to read an article regarding FASB 141/142 valuations written by John G. Mack, ASA, CBA that was published in the August/September 2002 issue of AZ CPA].

Employee Stock Ownership Plans (ESOP)

ESOP’s are a powerful tool that allows a business owner to sell all or part of his company to employees. Selling company stock to employees can offer unique opportunities for both succession and estate planning, thereby providing the closely held business a vehicle for continued growth and success.

ESOP appraisals are another specialized area of valuation that requires independence and expertise as they face intense scrutiny from both the IRS and the Department of Labor. Mack Business Appraisals has significant experience in providing initial valuations related to the ESOP purchase as well as annual valuations for ESOP administration. We provide you with a well documented report that clearly communicates the company’s value to the employees.

Merger/Acquisition Assistance

One of the most important steps towards purchasing or selling a business is to obtain an objective estimate of the value of the business. An accurate estimate of value of the business provides the buyer and/or the seller the information necessary to complete an equitable transaction. Mack Business Appraisals can provide valuation assistance to keep a seller from “leaving money on the table” or keep a buyer from potentially overpaying on a transaction.

We also have extensive experience working with SBA lenders to provide the buyer and the lender with the required valuation analysis needed to complete the transaction.