Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreOur valuation team worked with counsel representing a family that owns a large real estate development business and other related, closely held businesses (e.g., a construction company, an HVAC company, and a property management company). One family member wanted to transfer his ownership interests in certain entities into a newly formed trust. This transfer required a business valuation of those interests. Specifically, the family member wished to transfer membership interests in various entities that hold promote (carried) interest in real estate development projects undertaken by the previously referenced real estate development business.
We prepared an independent professional opinion of the fair market value of a one percent membership interest of the six promote entities on a noncontrolling, nonmarketable membership interest level of value basis as of the valuation date.
To calculate the fair market value of the promote interests in the various real estate development projects (i.e., the only asset of the promote interest entities), we applied an income approach. We summed the present value of future cash flow projected to be distributed upon the eventual sale of certain property. We relied on (1) deal cash flow projections for the current development projects, (2) valuation assumptions regarding the sale of certain property, (3) the distribution waterfall as described in the Limited Liability Company Agreement, and (4) real estate specific databases to derive an appropriate discount rate.
As a result of our analysis, the family member determined the interest he wanted to transfer to the newly formed trust. He and his trust and estate attorney successfully completed the transfer and confidently provided our valuation report to the Internal Revenue Service.
Brandon McFarland, ABV, MBA
Vice President
Economic Damages & Valuations
+1 470 704 5143
[email protected]
> Business Valuation
Our experts combine financial expertise with industry and market knowledge to value businesses and related assets. We perform business and intangible asset valuations and provide expert witness testimony for a variety of different purposes including, shareholder disputes, commercial litigation, marital dissolution, bankruptcy and restructuring, solvency determinations, financial reporting, mergers and acquisitions, IRC 409A, Employee Share Ownership Plans, Phantom Stock Plans and gift and estate tax reporting.
> Economic Damages & Valuations
We combine financial expertise with industry and market knowledge to quantify economic impact and determine the value of tangible and intangible assets. Our valuation experts assess and determine fair market value for real property, businesses, and intangible assets to help clients understand what their assets are worth and to provide third-party opinions/expert testimony on value in disputes.