Accurate values lead to effective tax planning and reliable compliance. A critical component of many tax planning strategies is a well-documented, supportable valuation analysis, especially considering that valuations conducted for tax purposes must meet high regulatory standards. 

Companies that undertake valuations for tax purposes have received higher scrutiny over the years from regulators and foreign revenue collectors, especially on intangible asset valuation. If not prepared, these inquiries can have a significant cost on the corporation. 

Early-stage companies and businesses anticipating an acquisition of any kind are some of the main beneficiaries of astute and bespoke valuation tax planning. Both need to consider how organizational growth will affect taxes and valuations in the future.

A&M Helps Your Business Prepare for Regulatory Scrutiny and Organizational Growth

To address these important demands, A&M has a team of dedicated tax valuation professionals who are part of the A&M Tax practice, the largest independent international tax firm outside of the Big Four accounting firms. Our tax valuation experts have in-depth experience conducting valuations for a variety of tax purposes.

A&M’s Valuation Tax services help clients by placing a tax-related value on overall companies, legal entities, spun-out businesses, tangible and intangible assets, and fractional interests. Whether a company is conducting a reorganization of legal entities, involved in a merger or acquisition, contemplating intellectual property migration, implementing gift and estate tax planning, buying or constructing a building, or issuing intercompany debt or preferred stock, A&M Tax’s dedicated tax valuation professionals possess the requisite expertise to provide a supportable valuation analysis that conforms with the myriad nuances of conducting valuations for tax purposes.

What Valuation Tax Services Does A&M Provide? 

Working directly with company management, our Valuation Tax professionals assist in improving fair market valuation for tax purposes and efficient reporting. Services offered by our Valuation Tax practice include:

• Intercompany valuation of legal entities and assets
• Intercompany estimation of interest rate and debt capacity
• Cost segregation and tax fixed assets ledger management
• Legal entity, tangible assets, intangible assets purchase valuations
• Valuation of intangible assets as part of related party transfers
• IRC Section 280(g) – non compete agreement valuations
• FIRPTA testing – real and personal property as well as enterprise valuations
• Emerging company valuation
• Valuation of trade secrets for insurance purposes
• NOL limitation and built-in gains – valuations of companies and entities
• Preferred stock coupon rates
• IRC Section 409A valuations
• Complex securities valuations
• Valuation of entities and fractional interests for gift and estate tax

What Are the Benefits of A&M’s Valuation Tax Services? 

A&M seeks to help clients reduce their tax burden and ease the pain of compliance with accurate valuations for tax purposes. Benefits of the service include:

• Cash benefits: Clients can realize a true cash benefit by depreciating certain assets earlier. With intangible assets, companies can often align their tax structure with their operations by moving assets from one geographic location to another, triggering a fair market value of the asset and necessary compliance reporting that can have a direct impact on cash flow. 
• Nuance: Valuation for tax purposes is very sophisticated and not many firms offer a valuation specialist with a tax-focus orientation. 
• Risk management: Our team understands the methods that are widely accepted by tax authorities, so we use our nuanced expertise and knowledge to proactively help the client conform with these approaches. 

Why Should You Use A&M’s Valuation Tax Solution? 

What differentiates A&M’s Valuation Tax service practice is our capability to team with other tax and corporate consulting teams inside A&M and provide senior-level leadership and experience that leads to comprehensive results. 

A&M clients always have access to top talent in the field. Each project team is led by one of our highly experienced tax valuation partners while working closely with our broader tax team to ensure the engagement is conducted with maximum efficiency. 
Close coordination with the tax team is vital to ensure the assumptions applied in the valuation analysis do not contradict any tax positions, such as transfer pricing documentation, and ensure the resulting value is supportable and consistent with the specific tax purpose. This provides seamless engagement integration and an understanding that valuation is critical to a much larger tax and commercial picture.

Additionally, we help clients by providing:  

• Specialty expertise: Few firms have the specialized valuation tax expertise and the support of A&M’s wide array of teams in its tax practice. 
• One stop shop: Since we can take advantage of the expertise and knowledge of A&M’s Taxand practice, not to mention the knowledge and disciplines across our firm’s other corporate solutions, we provide a synergy that offers clients reliable, best-in-class service. 
• Management of complex challenges: It is vital for companies to avoid attributing a value to an asset, business, legal entity, etc. that contradicts its own tax position and possibly trigger a tax authority’s scrutiny. Our team pays attention to transfer pricing to make sure our underlying assumptions and resulting values are not conducted in a vacuum and are consistent with the positions in each local jurisdiction.