Consideration of Potential Sale in Valuation:<\/strong> The key issue explored is whether a hypothetical buyer would consider the potential or pending sale of the company when valuing their stock. The IRS is concerned about ensuring accurate valuation to prevent undervaluation for tax avoidance purposes.<\/p>\n Importance of Updated Appraisals and Documentation:<\/strong> Lingerfeldt highlights the pitfalls of using outdated appraisals and emphasizes the importance of considering the sale timeline and obtaining relevant documentation such as communication with investment bankers, financial projections, and letters of intent. Additionally, he touches on reconciling financial and strategic valuations, particularly in the context of mergers and acquisitions (M&A) transactions.<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=EDZ—ETc9k” _builder_version=”4.24.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_video][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”2″ _builder_version=”4.24.3″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n <\/p>\n <\/p>\n In a new webcast by Family Enterprise USA<\/a>, the complex issue of valuing minority share holdings in a private, family-owned business is the focus with appraisal expert Mark Lingerfield of MPI, Business Valuation and Advisory.<\/p>\n Lingerfield, Partner and Managing Director, of Lawrenceville, N.J.-based MPI<\/a>, speaks with webcast host Pat Soldano about the critically important, and complex, issues of getting a family run business ready for sale. MPI is a valuation, litigation support, forensic accounting, and advisory firm. Soldano is President of Family Enterprise USA.<\/p>\n The webcast is a part of a series of webcasts and videos designed to help generationally-owned family business owners deal with the specific challenges family businesses face in America.<\/p>\n In the one-hour webcast, Lingerfield details the important steps required to successfully manage the sale process, including early valuations of shares, IRS issues, appraisal mistakes, avoiding litigation, and communicating with investment bankers.<\/p>\n \u201cLots of things can go wrong early in the process,\u201d says Lingerfield in the video. \u201cThis is not a simple process, and many family businesses fail at it,\u201d he said. \u201cIt\u2019s very important that proper valuations are done early, this is critical in the early stages of getting ready for a sale.\u201d<\/p>\n The webcast, entitled, \u201cValuing A Minority Block of Stock When a Private Company is For Sale,\u201d is available on here.<\/a><\/p>\n According to Soldano, the video offers many \u201cvaluable insights and solutions for approaching a family business sale.\u201d These include the many issues that can \u201cgo wrong,\u201d how to create timelines, and how the IRS views sales and mergers.<\/p>\n \u201cThe first question is, \u2018How do you value a minatory share when a family business is for sale?\u2019 Family businesses and family business offices need to get ahead of the critical valuation, ownership, tax, and ownership issues prior to selling a business,\u201d said Soldano about the webcast. \u201cMark offers all multi-generational family businesses the best way to grapple with these complex issues,\u201d she added.<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” custom_padding=”10px||2px|||” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”MPI Logo & About” _builder_version=”4.19.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/mpival.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6804″ global_colors_info=”{}”]<\/p>\n About MPI MPI has over 80 years of experience preparing Business Valuations for estate and gift tax planning and estate tax administration matters. MPI\u2019s work product is used as the foundation for succession planning strategies implemented by advisors for numerous types of businesses and assets. MPI has decades of experience presenting and defending its work product to IRS agents and engineers at the initial audit and appellate levels. Our valuation conclusions have withstood scrutiny under audit and been accepted as filed at a high rate, which has the effect of helping clients avoid the perils and costs of tax court or ongoing tax disputes with the IRS.<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to multi generational businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, multi generational businesses<\/a> and family businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to generationally-owned family businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider admin_label=”Video Slider Family Business Stories 3″ _builder_version=”4.20.2″ _module_preset=”default” global_module=”7257″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=qkzuUypw3JU” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=L5QmaJqcm4Y” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=LyZMrONDbPE” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=tmxFubyBiHA” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=9Tn7ZliFx2I” _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/youtu.be\/Jx5o3EzVD1E” _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Hash tags & Tags” _builder_version=”4.21.0″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness\u00a0 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A webcast featuring Mark Lingerfield, ASA a Partner and Managing Director at MPI, hosted by Pat Soldano, President, Family Enterprise USA. Valuation in Estate Planning Context: Mark Lingerfeldt, an expert on business valuation, discusses the IRS Chief Council’s advice memorandum (CCA) regarding valuing a minority block of stock in a private company in the […]<\/p>\n","protected":false},"author":2,"featured_media":10456,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,92,78,76,36,16,87,97],"tags":[],"class_list":["post-10454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-multi-generational-business","category-in-the-news","category-income-taxes","category-taxes","category-video-post","category-watch-listen","category-webinars"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10454"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10454\/revisions"}],"predecessor-version":[{"id":11072,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/10454\/revisions\/11072"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/10456"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How to Value Minority Shares When Selling Private Company Is Focus of New MPI Webcast from Family Enterprise USA<\/h2>\n
Webcast with MPI\u2019s Mark Lingerfield and Host Pat Soldano Discuss How to Effectively Prepare for Appraisals, IRS Issues, and Investment Bankers<\/em><\/strong><\/h3>\n
![\"\"](\"https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2021\/12\/MPI-sponsors-page.jpg\" "\\"\\"")
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<\/strong>MPI (Management Planning Inc.) is a business valuation, litigation support, forensic accounting and M&A advisory firm providing valuations for a variety of tax, financial reporting, litigation and other business applications, as well as corporate advisory services to business owners and their representatives.<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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