As the coronavirus pandemic unfolds, valuation analysts face the challenge of completing valuation engagements in real-time against a constantly changing economic backdrop. In this article, we review what valuation analysts can know, can’t know, and don’t need to know when developing valuation conclusions for minority interests in private businesses in 2020.

While estate planning may appear to be less pressing than other issues during the COVID-19 pandemic, the positive impact of effective planning on the long-term health of both the family and the family business is hard to overstate. If you are confident in the long-term resilience of your family business, you should not miss the current opportunity for tax-efficient estate planning activity.

We are not economic forecasters, so we are not attempting to make any predictions about the coronavirus or its economic effects. However, in an effort to provide some context for ourselves and our readers, we go back and examine some data from the Great Recession.

The economic effects of the COVID-19 pandemic are dire, and family businesses are not immune to the economic fallout from the virus. Yet we are confident that family businesses are best positioned to survive and lead in the post-pandemic economic recovery. For family shareholders who are optimistic about the resilience of their family businesses and focused on the long view, this is an ideal time to execute intrafamily transfers in pursuit of estate planning objectives.