Client Challenge
A family-owned financial services company required a valuation of its privately held shares for federal estate tax purposes following the passing of a major shareholder. The valuation needed to adhere to IRS standards, support estate planning strategies, and withstand scrutiny from tax authorities.
Our Role
FairValue Advisors was engaged to perform a fair market value appraisal of the company’s stock as of the date of death. We conducted a detailed analysis of the company’s financial position, regulatory environment, market conditions, and ownership structure. Discounts for lack of control and marketability were carefully applied, supported by empirical data and aligned with accepted valuation methodologies.
The Result
The valuation supported timely and compliant estate tax filing, enabled a smooth transfer of ownership interests, and provided the family and their advisors with a clear understanding of the company’s worth. Our defensible report helped reduce the risk of IRS challenges while supporting long-term succession planning.
