Business Valuation Services

With federal transfer tax rates routinely in excess of forty percent, the tax implications of estate planning and gift and estate tax valuations can be enormous. The valuation of closely held businesses for estate and gift tax purposes requires in-depth knowledge of the fair market value standard, understanding of the Special Valuation Rules of Chapter 14 of the Internal Revenue Code, thorough understanding of the rights and restrictions of the interest being valued, and careful determination of valuation discounts that are supportable. We have performed hundreds of valuations for gift and estate tax purposesfor operating businesses and holding companies in a wide array of industries. We are well-versed in all the areas that need to be considered in presenting a reliable third-party opinion of value.

There are many different types of valuations for income tax planning and compliance purposes. Our valuation experience extends to taxable transactions requiring valuation services in the following areas:

Valuations of closely held securities held by employee stock ownership plan (ESOP) differ from other types of closely held company valuations. Specific valuation issues include “adequate consideration”, valuation reporting requirements, ESOP-specific adjustments, put option and repurchase liability, to name a few. ESOP transactions are complex because they encompass the knowledge from various disciplines, including valuation, legal and regulatory, qualified plan administration, finance and fiduciary concerns. The valuation of ESOP stock requires specific knowledge of the Employee Retirement Income Security Act of 1974 (“ERISA”) regulations and related Department of Labor statutory requirements that must be satisfied by the sponsor of an ESOP. GMK Consulting has the expertise to provide the analysis that is required by the Internal Revenue Service and Department of Labor.

We provide independent valuations in connection with transactions involving stock to be acquired by ESOP along with the fairness opinions in connection with such transactions. We also provide annual ESOP update valuations and valuations for ESOP stock redemptions.

Complying with accounting rules related to fair value accounting is complex. With a background in financial statement auditing and experience in valuation, we are uniquely qualified to help in the measurement of intangible assets and other areas of financial reporting.

We assist clients with: