The Mentor Group Blog
Posted on May 1, 2023
Why, you ask, aren't all valuations for the same business or asset alike? How can they differ so much? There are reasons for divergence of opinion. And they usually involve one valuator being an ...
Continue reading "NOT ALL VALUATIONS ARE ALIKE" »
Posted on Apr 1, 2023
For a business owner, exiting and retiring can be a daunting process, both financially and emotionally. One of the key factors that can help ease this process is a pre-sale valuation of the business. ...
Continue reading "Preparing for a Successful Business Sale" »
Posted on Mar 1, 2023
A fairness opinion is a professional evaluation conducted by an independent third-party advisor to assess whether a proposed financial transaction or event is fair to all parties involved. The primary ...
Continue reading "PRIMARY ISSUES ADDRESSED IN FAIRNESS OPINION" »
Posted on Feb 1, 2023
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 Jan 1, 2023
Based upon a Federal Circuit Court of Appeals ruling, damage experts can no longer rely on a "25% rule of thumb" to support a reasonable royalty rate. This 25% rule had been accepted by ...
Continue reading "ASSESSING IP DAMAGES" »
Posted on Dec 1, 2022
For most companies contemplating some form of seller exit, an ESOP is often discussed as an alternative strategy. Considering an ESOP today is more fraught with some anxiety than ever before. Why? The ...
Continue reading "ESOP: ALTERNATIVE TO A SALE?" »
Posted on Nov 1, 2022
The looming sunset of the Tax Cuts and Jobs Act (albeit three years out at the end of 2025) has already begun to surface. The significant changes which positively impacted individuals may be ...
Continue reading "SUNSET OR RESET" »
Posted on Oct 1, 2022
Periodically, we perform business and IP valuations in countries outside the U.S. In conjunction with this work, we have developed relations with professionals in various locales, which further ...
Continue reading "INTERNATIONAL VALUATIONS" »
Posted on Sep 1, 2022
The valuation of a universal or whole life insurance policy is needed for at least the following reasons: An asset acquired via the purchase of a company. A transfer of this asset, such as to a ...
Continue reading "VALUING LIFE INSURANCE POLICY" »
Posted on Aug 1, 2022
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 Jul 1, 2022
In prior years, fairness opinions were primarily applicable for publicly held companies. Today, private transactions involving disparate and potentially conflicted parties are often accompanied by ...
Continue reading "FAIRNESS OPINION" »
Posted on Jun 1, 2022
A valuator (business or IP) or appraiser (hard asset: real estate, equipment or inventory) is considered an "expert" when one or more of the following occurs: He is qualified by a court of ...
Continue reading "WHEN IS A VALUATOR APPRAISER AN EXPERT?" »
Posted on May 1, 2022
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 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
Special equity compensation known as profits interests (PI) are only issued by Limited Liability Companies (LLCs). They provide for a share of profit in the company after a specific point in time. ...
Continue reading "PROFITS INTERESTS" »
Posted on Aug 1, 2021
What is the appropriate role of a financial valuator? Objectivity, above all else. As a member of the most prestigious governing body, the American Society of Appraisers (ASA), the credible valuator ...
Continue reading "ROLE OF THE VALUATOR" »
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" »