• Mergers and Acquisitions/Exit Planning - QuickRead Top Story

    Exit Planning: Examining Available Sale Options and Steps to Maximize the Financial Outcome (Part I of II)

    October 29, 2025

    Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This two-part comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. Effective exit planning is essential for business owners to maximize financial outcomes when selling or transferring their business. This comprehensive guide explores the strategic options available, the timing required for preparation, and key value drivers to enhance sale success. I have been involved in buying and selling businesses for about 25 years and have talked to countless business owners during…

  • QuickRead Top Story - Valuation/Appraisal

    Act Now Before It’s Too Late

    December 4, 2024

    Valuation Discounts Considered in Gift and Estate Planning With a look forward to December 31, 2025, when the current lifetime exclusion levels for estate taxes are slated to sunset, wealth planners and their clients have much to discuss. Valuation and estate planning professionals have a key opportunity to strategize and develop the best plans for family businesses and high-net-worth individuals. With a look forward to December 31, 2025, when the current lifetime exclusion levels for estate taxes are slated to sunset, wealth planners and their clients have much to discuss. They have a key opportunity to strategize and develop the…

  • QuickRead Top Story - Valuation/Appraisal

    A Contrarian View to Discount for Lack of Control

    August 23, 2023

    The “Least Bad” Method Determining a discount for lack of control (DLOC) is one of the more challenging tasks facing business valuators. The reason for this is the methodologies used each have weaknesses. In this article, David Goodman looks at two methods and explains the difficulties in relying on them. This is a case where business appraisers may need to rely on the “least bad” method … a term of art. Determining a discount for lack of control (DLOC) is one of the more challenging tasks facing business valuators. The reason for this is the methodologies used each have weaknesses.…

  • QuickRead Top Story - Valuation/Appraisal

    Closed-End Funds Are Not a Proxy for Discounting

    February 3, 2021

    Reconsidering the Use of CEFs as a Proxy for DLOC The market pricing of publicly traded closed-end funds based on net asset values is not a reliable proxy for estimating discounts for lack of control for closely held businesses having a portfolio of marketable securities. Despite the acceptance for decades by the highest courts of this valuation method, the author, in this article, sets forth the basis for questioning this established practice. The market pricing of publicly traded closed-end funds (CEFs)1 based on net asset values (NAVs) is not a reliable proxy for estimating discounts for lack of control (DLOC)[1]…

  • QuickRead Top Story - Valuation/Appraisal

    Valuation Discounts

    August 28, 2019

    Applicable to Real Estate Holding Companies (Part II of II) In this second of a two-part series published in QuickRead August 01, 2019, the author discusses valuation discounts applicable to real estate holding companies and the incremental adjustments in the valuation of partial, non-controlling interests. After discussing the application of a minority discount or discount for lack of control (DLOC) in the last issue of Real Estate Perspectives, I will now turn to discussing the next incremental adjustment in the valuation of partial, non-controlling interests in entities holding real estate as their primary and most valuable asset. In this article,…

  • QuickRead Top Story - Valuation/Appraisal

    Valuation Discounts

    July 31, 2019

    Applicable to Real Estate Holding Companies (Part I of II) In this two-part series, the author discusses real estate holding companies and describes the use of minority discounts (also known as the discount for lack of control [DLOC]) in the valuation of partial, non-controlling interests in entities holding real estate as their primary and most valuable asset. Part II will address the use of the discount for lack of marketability (DLOM) and certain other discounts applicable to interests in real estate holding companies. [su_pullquote align=”right”]Resources: Discounts for Lack of Marketability (DLOM) Workshop Advanced Valuation: Applications and Models Workshop How and…

  • Case Law - QuickRead Featured

    Proposed IRC Sec. 2704 Regulations Released

    August 24, 2016

    Valuation and Planning Impacts This article outlines the major provisions of the proposed regulations. If the proposed regulations are adopted in their current form, they only apply to transfers made after the final regulations are promulgated, and the most pervasive provisions of the proposed regulations, apply only to transfers made at least thirty days after the restrictions become final.

  • QuickRead Featured - QuickRead Top Story - Valuation/Appraisal

    Are Family Limited Partnership Discounts About to End for Newly Formed FLPs?

    July 29, 2015

    Is There a Reason to Act Soon? Will the IRS Prevail this Time? The IRS is considering issuing proposed Section (SEC) 2704(b)(4) regulations to limit the availability of discounts for lack of control and lack of marketability. The article highlights the need to communicate with estate and gift tax attorneys that have discussed forming a FLP. While practitioners do not know what is being proposed, the §2704 legislative proposal (last included in the Fiscal Year 2013 Greenbook dated February 2012) includes items considered eight years ago, which includes adding additional disregarded restrictions and restrictions on assignee interests.

  • QuickRead Featured - QuickRead Top Story - Valuation/Appraisal

    Valuing Equity in Real Estate-Holding Entities

    July 16, 2014

    Think like an investor, not an accountant! If fair market value is to determine investor expectations and equity risk; then why do these factors receive limited or no consideration when opining on the level of impairments (investor concessions) ubiquitously referred to ask discounts? This article addresses the business risks associated with asset-holding companies’ equity that should be considered and reported when preparing a valuation report.