The Mentor Group Blog
Posted on Apr 1, 2022
Convertible instruments include various forms of debt obligations that are not common stock or member interests in an LLC. However, they are convertible into equity or equity equivalents. The variety ...
Continue reading "CONVERTIBLE INSTRUMENTS VALUATION" »
Posted on Mar 1, 2022
The following is a simplified overview of the need for documentation to support an allocation of the purchase price of a business. In most purchases, the agreement contains a schedule of allocated ...
Continue reading "STOCK vs. ASSET - ALLOCATION OF PURCHASE PRICE" »
Posted on Feb 1, 2022
Taxpayers and savvy professional service providers are often unaware of the differences in discount valuation reports issues by supposedly competent valuators. The Mentor Group approach is unique in ...
Continue reading "WIDE VARIANCE IN DISCOUNT VALUATIONS" »
Posted on Jan 1, 2022
Bless the SEC for they have recently promulgated new guidance for Spring-Loaded Stock Awards (SLSA).In past years, executive stock compensation awards or grants just prior to the announcement of ...
Continue reading "Spring - Loaded Stock Awards" »
Posted on Dec 1, 2021
The Internal Revenue Code allows employees, or startup founders, the option to pay an income tax on the total value of the restricted shares (equity) received at the grant date.To effect this taxable ...
Continue reading "Section 83(b) Election" »
Posted on Nov 1, 2021
The headline reflects the most common corporate conversion, C to S. At the same time, the prevailing tax consequences may also apply to C conversions to LLCs and S corporations buying assets from a C ...
Continue reading "CONVERSION OF C TO S CORPORATION" »
Posted on Oct 1, 2021
The latest IRS regulations were promulgated on July 30, 2018.These included detailed definitions of a qualified appraisal and a qualified appraiser. The appraisal must support the value of a stock or ...
Continue reading "CHARITABLE CONTRIBUTIONS" »
Posted on Sep 1, 2021
No matter the state of the market, business value drivers remain fairly constant. Buyers’ appetite for certain industries or industry segments reflects the current period. Yet, the attributes ...
Continue reading "WHAT ARE THE VALUE DRIVERS?" »
Posted on Aug 1, 2021
This headline is not intended to dissuade any committed business owner from selling. It is a warning that a deal may go sideways or crater at any point in time, even just before the cash is wired to ...
Continue reading "SELLING YOUR COMPANY: ANTICIPATE THE WORST" »
Posted on Jul 1, 2021
One of the most complex valuation exercises is the automobile dealership. These businesses are actually comprised of five distinct operations, with separate financial information for each. New ...
Continue reading "VALUING A CAR DEALERSHIP" »
Posted on Jun 1, 2021
A SPAC is special purpose acquisition company designed to expedite a merger of a target seller into a publicly traded entity. The incredible expansion of SPAC funds has somewhat saturated U.S. ...
Continue reading "SPAC FAIRNESS OPINION" »
Posted on May 1, 2021
Careful consideration should be given to potentially significant tax liability with respect to stock issued to founders, employees and contractors (in lieu of other compensation). Often, startups and ...
Continue reading "Considering an 83(b) Election" »
Posted on Apr 1, 2021
The intellectual property called Right of Publicity (RP), is also known as “Name and Likeness” “Persona,” and “Personality Rights.” Any and all of these terms ...
Continue reading "RIGHT OF PUBLICITY (Name and Likeness)" »
Posted on Mar 1, 2021
Intellectual Property (IP) has been adopted as a catchall for many different types of intangible assets. The valuation of various IP is a unique specialty of The Mentor Group. If a company did not ...
Continue reading "IP VALUE ON FINANCIAL STATEMENTS" »
Posted on Feb 1, 2021
The awareness of using cost segregation to maximize tax depreciation has significantly increased. An added benefit was created by The Tax Act, allowing taxpayers to expense personal property (bonus ...
Continue reading "COST SEGREGATION PITFALLS" »
Posted on Jan 1, 2021
Why is IP so different than other business assets? What are the instances or events which trigger an IP valuation? There are numerous reasons why we value IP. The 10 most prevalent are the following: ...
Continue reading "IP: WHEN SHOULD IT BE VALUED?" »
Posted on Dec 1, 2020
Not every litigation case requires outside experts. However, many involve the employment of consultants on behalf of plaintiffs and/or defendants. Our role, when we choose to accept an assignment, ...
Continue reading "VALUATION IN LITIGATION" »
Posted on Nov 1, 2020
A large majority of the professionals I encounter on Zoom have never been busier. Our valuation practice is experiencing the same type of busy, achieving some of our best months of new business in our ...
Continue reading "COVID INDUCED BUSY" »
Posted on Oct 1, 2020
If your accountant suggests that your firm should consider a transfer pricing study, you should heed this advice. One of the current waves of IRS audits involves transfer pricing, which is covered in ...
Continue reading "PREPARING FOR IRS AUDIT OF TRANSFER PRICING" »
Posted on Sep 1, 2020
Even in "normal" times, business valuation is an exercise that is part quantitative and part qualitative. Only after years of practicing is the valuator competent enough to know which ...
Continue reading "BUSINESS VALUATION DURING COVID" »
Posted on Aug 10, 2020
How has COVID-19 impacted real property values? The rather "obvious" conclusion might be that value is depressed. No so fast. It depends on several factors, not all of which are obvious. The ...
Continue reading "REAL ESTATE VALUES IN COVID ERA" »
Posted on Jul 1, 2020
The Tax Cuts and Jobs Act of 2017 contained an error. It did not allow for new tenant or interior improvements to be classed as 15-year property. Rather, these costs were removed from the 15-year ...
Continue reading "COST SEGREGATION - QUALIFIED IMPROVEMENT PROPERTY" »
Posted on Jun 1, 2020
There are many forms of debt. In fact, other than common stock, all other forms of capital are basically debt. By definition, debt carries an interest component. Some debt interest is paid on a ...
Continue reading "WHEN IS DEBT NOT REALLY DEBT?" »
Posted on May 1, 2020
Can you value a business without appraising the underlying assts? The answer is yes. In fact, most business valuations are not all premised upon any specific asset values. Think of a business or ...
Continue reading "BUSINESS VALUE vs. UNDERLYING ASSETS" »
Posted on Apr 1, 2020
In the most recent gift tax case, the experts on both sides applied a C corporation tax rate to the companies S corporation earnings. Initially, the IRS (Kress v. U.S.) claimed that the taxpayers paid ...
Continue reading "TAX AFFECTING S CORPS" »