Valuation of Closely Held Companies



  • Available Until 5/2/2021
  • Next Class Time 10:00 AM PT
  • Duration 60 min.
  • Format MP3 Download
  • Program Code 0118357
  • MCLE Credits 1 hour(s)

Course Price: $65.00


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Virtually every transaction of a closely held company requires a valuation. The company may be selling itself or some of its assets; obtaining a loan or placing equity with new investors; its owners may be engaged in a buy/sell transaction; or estate planners may need it for planning purposes. But valuing a closely held company is much art as science because there is no regular and liquid market matching buyers and sellers. This makes valuation highly contentious as parties argue over add-backs, discounts and premiums, and how to “price” cash flow or earnings. This places significant pressure on transactional attorneys to understand the many intricacies of valuation. And all the familiar calculations have been altered by the new tax law. This program will provide you a real-world guide to valuation methodologies, how the purpose of the valuation effects the outcome, common points of contention, and drafting tips to avoid costly disputes.

  • Closely held company and asset valuation and draftingissues for transactional lawyers
  • Impact of new tax law on closely held companyvaluation
  • How purpose of valuation impacts the valuation
  • Valuation methodologies depending on the type ofbusiness or asset – asset-based, cash flow, market comparables, andintrinsic value
  • Costly valuation mistakes and how to reduce risk ofdispute
  • Valuation premiums and discounts – “fair market value”and “fair value”
  • How valuations are actually derived – objectivefactors v. professional judgment

Speaker: Ronald L. Seigneur is a partner in Seigneur Gustafson LLP, a CPA firm located in Lakewood, Colorado, where he provides valuation, tax and retirement planning, and litigation support services. He has published over 80 articles on business valuation and is co-author of “Financial Valuation: Applications and Models,” (2nd Ed.), a treatise on business valuation published by John Wiley & Sons. He is a Certified Valuation Analyst with the National Association of Certified Valuation Analysts (NACVA) and holds the American Institute of Certified Public Accountants’ specialty designation of Accredited in Business Valuation. He is an Adjunct Professor of Law at the University of Denver College of Law, where he teaches financial, management and leadership courses. Mr. Seigneur earned his B.A. from Michigan State University and a MBA from the University of Michigan.