•     Buy/Sell Agreements
•     Charitable Contributions
•     Damages for Disruption of a Business
•     Dissenting Shareholder Actions
•     Estate Tax Planning and Determinations
•     Family Limited Partnerships
•     Gifts Programs and Gift Taxes
•     Marital Dissolution
•     Prenuptial Agreements
•     Partner Disputes and Split-Ups
•     Purchase, Sale, or Merger of a Business
•     Succession/Exit Planning
•     Venture Capital and Other Forms of Financing
•     Cohabitation Agreements

The valuation consultants at Southard, Beckham, Atwater & Berry, CPA PS utilize comprehensive approaches to valuing business interests and have years of experience valuing business interests, family limited partnerships, and retirement plan annuities. R. Christopher Beckham, CPA (shareholder) is a member of the Institute of Business Appraisers and has provided valuation services more than twenty-five years. Christopher T. Mutchler, CPA, CVA, CFE has been involved in the preparation of business valuations for more than six years and earned the accreditation of Certified Valuation Analyst (CVA) in 2006.

Our business valuation consultants provide the level of service you require, ranging from calculation reports to detailed reports. We will assist you in determining which of the valuation services are appropriate for your situation:

I. Detailed Report

This comprehensive, narrative report expresses an independent opinion on the value of a business interest. The report provides a logical progression and clearly communicates pertinent information, valuation methods, and conclusions. The result is an accurate, easy-to-understand and defendable report on the value of your business.

For income tax purposes, certain transactions may require determining the fair market value of stock in a closely held business to accurately assess tax liability that can help avoid overpayment or underpayment of taxes. Business Valuation Guidelines were revised July 1, 2006 and published in the Internal Revenue Manual for all IRS employees who review (audit) detailed valuations prepared by others. The Guidelines are essentially an “audit program” which outlines procedures and forms of analysis to ascertain the appropriateness of detailed valuations used for federal tax purposes.

If you need a formal valuation report, you need to be confident the appraiser you hire has the expertise and credentials to perform a defendable valuation that may be challenged by the Internal Revenue Service. The business valuation professionals at Southard, Beckham, Atwater and Berry, CPA PS possess the experience, knowledge of valuation techniques and credentials to give you the confidence that your valuation will be done right, the first time.

II. Summary Report

If the report is for internal client use only, we can issue a summary report that states material factors leading to the report’s conclusions. A summary report generally involves the same in-depth analysis as a detailed report, however much of the content required in a detailed report is omitted from the summary report to reduce costs. If a third party challenges the value conclusion, we can use additional work-file information to produce a corresponding detailed report.

III.     Calculation Report (new standards as of January 1, 2008)

The American Institute of Certified Public Accountants (AICPA) drafted and adopted Statements on Standards for Valuation Services (SSVS1) effective January 1, 2008 which apply to all CPA’s who are members of the AICPA. In addition, the National Association of Certified Valuation Analysts (NACVA) modified their Professional Standards to compliment those reflected in SSVS1. As a result, new reporting standards were outlined regarding the minimum content of calculation reports (formerly referred to as “calculations of value.”)

For calculation engagements, which provide an approximate indication of value, we perform limited procedures agreed to in advance with our client. This type of engagement is appropriate when a client wants an estimate of business value, but does not require a formal opinion. This type of report is not used to communicate the results of a valuation engagement, since a calculation engagement does not include all of the procedures required for a detailed report (conclusion of value).

IV. Litigation Support

In addition to preparing written valuation reports, our valuation professionals offer the experience and credentials to provide trial preparation assistance, expert testimony and review of other expert reports.

The IRS toughens penalties for business appraisers

The Pension Protection Act of 2006 also added new rules that apply to qualified appraisals (valuations); including who can perform them, and new accuracy related penalties. Who is a “qualified appraiser” is now defined by statute. In general, under prior law Reg. Sec. 1.170A-13(c)(5) allowed an appraisal if the appraiser held himself out as an appraiser or regularly performed appraisals; had some subjectively adequate credentials, knew about the civil fraud penalties and was not a disqualified person.

Now, the appraiser needs either “an appraisal designation from a recognized appraiser organization” or has met “minimum education and experience requirements” established by the Secretary. New credential requirements are complemented by penalty provisions set forth in new Code Section 6695A. Valuation penalties have also been strengthened. Under Code Section 6662(e), a substantial valuation misstatement for income tax penalty purposes is 150% of the correct valuation, reduced from 200%. A gross valuation misstatement is now 200% of the correct value, down from 400%.

Why Southard, Beckham, Atwater & Berry, CPA PS?