| Valuing Complex Family Limited Partnerships and LLCs
Program Type: Recorded Webinar(Audio, PPT Presentation)
Program Level: Overview
Prerequisites: Learning activity level that provides a general review of a subject area from a broad perspective
Advanced Preparation: Taken a valuation course or webinar on valuing FLPs; read Comprehensive Guide for the Valuation of Family Limited Partnerships; and reviewed Chapter 14 of PPC's Guide to Business Valuations
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hour
Fields of Study: 1 Business Law, 1 Finance
Shipping Weight: 0lbs. 0oz.
Using an analytical method for valuing FLPs, including the Income and Market Approaches, allows appraisers to more accurately and objectively determine value. As professional methodology has advanced, there are certain types of partnerships that may be considered complicated. This webinar will focus on valuing complex FLPs, including: high debt real estate FLPs, multiple asset FLPs, oil and gas FLPs, and non-income producing FLPs using case studies. In addition, issues such as how to handle the FLPs that own privately held stock, multiple (stacked) partnership interests, venture capital funds, general partnership interests, and promissory notes.
After completing this webinar, attendees will be able to:
- Determine the pitfalls of using average discounts from studies when valuing FLP interests
- Explain how the Tax Court responded to FLP appraisals that are not objectively supported with empirical data
- Utilize the proper data to support the determination of discount rates
- Summarize the criteria necessary for the selection of guideline entities
- Prepare a bullet proof appraisal that will accurately determine the correct value and be supportable
- Use case studies to illustrate the step by step procedures on how to apply practical methods to value complex FLP interests
- Recognize common problems; analyze and select the proper data to support their conclusions
- Prepare an appraisal that will withstand the scrutiny of the IRS and the Tax Court
Who Should Attend
CPAs, attorneys, appraisal review specialists, financial analysts, and appraisal practitioners
Mr. Bruce A. Johnson, ASA is a partner in the business valuation firm of Munroe, Park & Johnson, Inc. located in San Antonio, Texas. Mr. Johnson provides valuation services for gift and estate tax planning, sale transactions and shareholder disputes. He has 20+ years of experience in the valuation of businesses in industries such as manufacturing, auto dealerships, food services, distribution, retail and construction. In addition to earning a degree in Engineering and MBA from Texas A&M University, Mr. Johnson is an Accredited Senior Appraiser of the American Society of Appraisers. He is an instructor and course developer for Partnership Profiles “Valuing Family Limited Partnerships” seminars and was the expert witness for the taxpayer in the Estate of Elsie J. Church, the first FLP case to go to court.