Valuation Services
Accurate, defensible business valuations for the three scenarios where getting the number right matters most.
Estate Tax Valuation
When a business owner passes away, the IRS requires a fair market value determination of all business interests as of the date of death. This valuation directly affects the estate tax liability — and an incorrect number can mean significant overpayment or IRS challenges.
ETG provides thorough, IRS-compliant valuations that account for applicable discounts (lack of marketability, minority interest) and follow established methodologies recognized by the IRS and Tax Court.
Typical Engagements Include:
- Closely-held business interests (LLCs, S-Corps, partnerships)
- Family-owned operating companies
- Holding companies and investment entities
- Professional practices (medical, legal, accounting)
What You Get
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1
Comprehensive Valuation Report
Full narrative report with methodology, analysis, and conclusion of value
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2
Discount Analysis
Supportable discounts for lack of marketability and minority interest
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3
IRS-Ready Documentation
Meets all requirements for Form 706 filing and potential audit defense
Gift Tax Valuation
Lifetime transfers of business interests — whether to family members, trusts, or charitable organizations — require qualified appraisals to establish fair market value for gift tax reporting.
A proper valuation ensures adequate disclosure on Form 709, starts the statute of limitations, and provides a defensible position if the IRS questions the reported value.
Common Scenarios:
- Annual exclusion gifts of business interests
- Transfers to family limited partnerships (FLPs)
- Charitable contributions of business interests
- Intergenerational wealth transfer planning
Why Timing Matters
The current estate and gift tax exemption is historically high — but it's scheduled to sunset. Proper valuations done now can help clients take advantage of current exemption levels before potential changes.
A qualified appraisal completed before a transfer also provides the strongest defense if the IRS later challenges the value used on the gift tax return.
Trust Valuation
Trusts holding business interests need accurate valuations at multiple points — funding, annual accounting, distributions, and termination. The fiduciary duty of trustees demands reliable numbers.
ETG provides valuations for a wide range of trust structures, ensuring compliance with both tax requirements and fiduciary obligations.
Trust Types We Support:
- Grantor Retained Annuity Trusts (GRATs)
- Intentionally Defective Grantor Trusts (IDGTs)
- Charitable Remainder and Charitable Lead Trusts
- Irrevocable Life Insurance Trusts (ILITs)
Fiduciary Protection
Trustees have a duty to administer trust assets prudently. An independent, qualified valuation provides critical documentation that the trustee acted in good faith and with reasonable care.
This protection matters whether you're funding a new trust, making required distributions, or preparing for trust termination.
The Process
From initial consultation to final report — here's what to expect when you work with ETG.
Initial Consultation
We discuss the engagement scope, timeline, and what documents we'll need. No obligation — this call is about understanding your situation.
Document Collection
We provide a clear checklist of what's needed — financial statements, tax returns, operating agreements, and other relevant documents.
Analysis & Valuation
Scott performs the analysis using appropriate methodologies — income, market, and/or asset approaches — with applicable discounts and premiums.
Draft Review
You receive a draft report for review. We discuss findings and address any questions before finalizing.
Final Report Delivery
The completed, IRS-compliant valuation report — ready for filing, audit defense, or fiduciary documentation.
Need a Valuation?
Let's discuss your situation. The initial consultation is free and confidential.
Get a Consultation