ESTATE PLANNING
Business Valuation for Estate Planning
Business valuation services for estate planning covering trust funding, buy-sell agreement pricing, lifetime gifting strategy, and multi-generational ownership transfer. Equity Business Valuation Services values closely held C-corporation stock, S-corporation shares, LLC and family limited partnership interests, and operating-company holdings for families planning a transfer nationwide.
A Business Valuation Anchors Every Strategy in Your Estate Plan
Estate planning for the owner of a closely held business starts with a number: what is the company worth today? Every strategy an attorney or CPA might recommend, from funding a trust to setting a buy-sell price to gifting equity to the next generation, depends on a fair market value that will hold up if it is ever challenged.
Our appraisers apply that fair market value to the specific vehicle the plan calls for. A grantor retained annuity trust or an intentionally defective grantor trust needs the equity's value at funding. A buy-sell agreement needs a price the remaining owners and any funding life insurance can rely on. A lifetime gifting program needs the value of each transfer measured against the annual and lifetime exemption. In every case, we weigh the income, market, and asset approaches under the fair market value standard set out in IRS Revenue Ruling 59-60 and document any supportable discount for lack of control or lack of marketability.
The result is a report prepared in accordance with USPAP that your attorney, CPA, and financial advisor can build the plan around, and that lays the groundwork if an estate tax filing follows later.
Engagements are quoted as a fixed fee, confirmed before work begins. Review our business valuation pricing before you request an appraisal.
PLANNING STRATEGIES
Equity Business Valuation Services Supports Every Estate Planning Strategy That Depends on a Business Value
We value the closely held business interest at the center of the transfer, whichever vehicle your advisory team is using to move it.
Trust Funding & Grantor Trusts
- GRAT funding and structuring
- Intentionally defective grantor trusts (IDGTs)
- Other grantor trust structures funded with equity
Buy-Sell Agreement Pricing
- Cross-purchase agreement pricing
- Entity-redemption agreement pricing
- Life insurance funding alignment
Lifetime Gifting Programs
- Annual exclusion gifts of equity
- Lifetime exemption gifts
- Gifts to a family trust
Multi-Generational Succession
- Management transition planning
- Ownership transfer across generations
- Family business continuity
Family Limited Partnership Planning
- FLP interest valuation
- Family LLC interest valuation
- Transfer restriction & discount documentation
ESOP & Insider Transfer Feasibility
- ESOP feasibility analysis
- Insider sale valuation support
- Succession option comparison
OUR PROCESS
How We Prepare a Business Valuation for Your Estate Plan
- 01
Define the Planning Objective
Tell us the vehicle your plan is using, such as a trust, a buy-sell agreement, or a gift, and the effective date it depends on.
- 02
Gather Financial & Governing Records
We collect financial statements, tax returns, the cap table, and governing documents to establish the basis for value.
- 03
Value the Business Interest
Our appraisers apply the income, market, and asset approaches, determine supportable fair market value, and quantify any applicable discounts.
- 04
Deliver a Report Your Advisory Team Can Build On
We deliver a signed report prepared in accordance with USPAP that your attorney, CPA, and advisor can use to finalize the plan.
CREDENTIALS
Appraisers Advisory Teams Rely On for Estate Planning Valuations
Every estate planning valuation is prepared by appraisers who hold credentials with organizations such as the ASA and NACVA, following USPAP throughout the engagement.
ASA-Accredited Senior Appraisers
NACVA Members
USPAP-Compliant Reporting
ESTATE PLANNING FAQS
Estate Planning Business Valuation Questions
When should I have my business appraised as part of estate planning?
The best time is at the start of the planning process, before you fund a trust, design a gifting program, or finalize a buy-sell agreement, because each of those decisions depends on a supportable value. Many owners also refresh the valuation as the business grows or the plan is revisited so the figures their advisors work from stay current.
How does a business valuation support a buy-sell agreement?
A buy-sell agreement sets the terms for transferring an owner's interest, and it needs a credible method for pricing that interest. An independent fair market value appraisal establishes a defensible price and the methodology behind it, which helps the remaining owners, heirs, and any funding life insurance align on what the interest is worth.
How often should an estate planning valuation be updated?
There is no fixed schedule, but a valuation reflects the business as of a specific date, and value changes as the company does. Owners commonly update the appraisal when earnings shift materially, when ownership or the governing documents change, or before executing a new transfer, so the plan continues to rest on current numbers.
Can one valuation support both my estate plan and the gift or estate tax filings that follow?
A valuation prepared to the fair market value standard and documented in accordance with USPAP provides the analysis your advisors need for planning, and the same fair market value framework underlies the reporting on Form 709 and Form 706. We set the effective date and scope of each engagement to the transfer at hand, so the report aligns with the filing it supports.
Who relies on the business valuation during the estate planning process?
The owner engages us, and the report is typically shared with the estate planning attorney, CPA, and financial advisor structuring the plan. We deliver a signed, USPAP-compliant report addressed to the engaging party so it can be shared with the advisors who build the plan around it.
Request Your Estate Planning Valuation
Tell us the business interest and the planning strategy in view, and we'll scope a fixed-fee engagement.