Fairness Opinion/Death Tax Filing/Cost Segregation


Fairness Opinion- Major equity participant in a new venture had also loaned large amount to keep operation afloat. That investor decided to acquire newly developed software from original company and place it in Newco. We analyzed whether the acquired software was worth more or less than the debt forgiveness. Based upon our analysis of the IP, client made an appropriate offer to acquire software and we issued a fairness opinion that the deal was reasonable to existing shareholders.

Death Tax Filing - Deceased owned many acres of crop producing ranch land, in separate locations. Our appraisal involved the underlying land, the crop values, the personal property, and the partial interests in the entities holding the assets. The difficulty was assigning value to the crops, apart from the land as if vacant. The values were used to step -up the basis for the assets in a taxable estate.

Cost Segregation - Landmark LA commercial facility was acquired by our client. Our engagement was to isolate the shorter lived personal property from the long lived building to maximize early year's tax depreciation. This cost segregation study resulted in a present value benefit of after-tax savings (equivalent of cash received) that exceeded the fees by a factor of 25.