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Estate and Gift

We perform valuation services for federal estate and gift tax purposes. Examples of business interests valued for estate and gift tax purposes include the following:
  • Closely-held corporations – common and preferred stock.
  • Restricted stock.
  • Partnerships and LLC’s.
  • Family limited partnerships (FLP’s).
  • Large blocks of public stock.
  • Stock options and other derivatives.
  • Investments held by Grantor Retained Annuity Trusts (GRAT’s) or other Trusts.
  • Notes receivable.
  • Discount Studies.

Purchase Price Allocation (Section 338(h)(10))

A Section 338(h)(10) valuation of assets is required when shareholders dispose of an investment in a subchapter S corporation through an asset sale. Any gain in such a transaction will be taxed partially as a capital gain and partially as ordinary income depending on the difference between the fair value of the assets and their taxable book value.

Section 409(a)

Section 409(a) of the Internal Revenue Code provides that a stock option granted under a nonqualified deferred compensation plan that has an exercise price equal to less than the fair market value of the stock as of the date of the grant constitutes taxable deferred compensation. The adverse consequences of such an arrangement include taxation at the time of vesting and a 20.0 percent penalty. A third party valuation can be an important part of the proper structuring of stock option plans so that negative consequences are avoided.

ESOP Valuation

Employee Stock Ownership Plans (ESOPs) are a powerful tool that allows the business owners to sell all or part of their business to employees. Selling company stock to employees can offer unique opportunities for both succession and estate planning, thereby providing the closely held business with a vehicle for continued growth and success. ESOP appraisals are a specialized area of business valuation that require independence and expertise as they face intense scrutiny from both the IRS, and the Department of Labor (DOL). We have experience in providing initial valuations related to the ESOP transaction as well as annual valuations for ESOP administration. We provide a well-documented report that clearly communicates the company’s value to the employees.
In addition, we provide valuation services in support of tax positions pertaining to discounts on large blocks of public stock, valuations of restricted stock and derivatives, securitized lending, transfer pricing, and intangible assets, such as non-compete agreements.

Industries We Serve

Media & Entertainment
Oil & Gas
Hedge Funds
Power & Utilities
Banking & Security
Automotive
Federal Government
Customer Products
Real Estate
Technology
Telecom
Health Care
Aerospace & Defence
Private Equity
Life Sciences

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Sycamore Valuation is a financial advisory firm that provides independent business valuation and consulting services to meet the demanding challenges of businesses in the 21st century. Our goal is to provide exceptional service in an efficient and timely manner. We provide the highest standards of integrity, independence, objectivity, and financial expertise.
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