PART 1--COURSE OBJECTIVES
After you have completed this course you will be able to do the following:
- Identify the situations in which business valuation may be appropriate.
- Define the fair market value of a business for IRS estate or gift value
purposes.
- Describe the basic principles of the adjusted-book-value method of valuation,
and explain the problems in obtaining the asset valuation data necessary to
use this method in practical situations.
- Describe the basic principles of the capitalization-of-earnings method,
and explain the problems in obtaining the income data required to use this
method.
- Describe the discounted-future-earnings (DFE) method of valuation as an
extension of basic capitalization principles.
- Explain how different valuation techniques are often used in combination
to obtain an accurate valuation of a business.
- Describe various discounts that are often applied in valuing closely held
stock.
- Describe some of the factors that must be considered for the valuation of
preferred stock.
- Discuss the issues that must be considered in the valuation of a business
for determining the price provision in a buy-sell agreement.
- Explain the dangers associated with the use of an appraiser for tax purposes.
- Identify the tax penalties associated with incorrect appraisals for federal
or gift tax purposes.
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