Gift, Estate, and Income Tax Valuation Insights Newsletter

This newsletter addresses gift & estate tax, and transaction advisory topics of interest to estate planners and other professional advisors to business.

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2025 Issues

Mercer Capital’s Value Matters^® February 2025

• FEATURE ARTICLE | Beyond Life Insurance: Broader Lessons From Connelly

Mercer Capital’s Value Matters^® January 2025

• FEATURE ARTICLE | The Elements of a Quality Business Valuation: A Guide for Estate Planners

2024 Issues

Mercer Capital’s Value Matters^® December 2024

• FEATURE ARTICLE | Evolving Need for Estate Planning Amid Legislative Shifts

Mercer Capital’s Value Matters^® 2024-02

• Supreme Court Upholds Connelly
• Your Family Business Will Transact: Are You Ready?
• Home Depot Announces SRS Distribution Acquisition
• What to Look for in a Quality of Earnings Provider

Mercer Capital’s Value Matters^® 2024-01

• Observations from a Buy-Sell Agreement Gone Bad
• Munger Games: Charlie Munger’s Legacy
• Capital Planning and IRS Section 6166
• Now Could Be a Great Time to Transfer Stock to Heirs

2023 Issues

Mercer Capital’s Value Matters^® 2023-03

• Navigating the Estate Tax Horizon
• A Tale of Two Shoes
• An $80 Billion Estate & Gift Tax Valuation Update
  — 3 Things to Do When Selecting a Business Appraiser
• Fall 2023 M&A Update

Mercer Capital’s Value Matters^® 2023-02

• Just Released: 2023 Benchmarking Guide for Family Business Directors
• Unpacking the Corporate Transparency Act
• A Lifelong Succession Plan | Lessons from the Arnault Family
• Tax Court Sides with Family Business in Cecil

Mercer Capital’s Value Matters^® 2023-01

• Estate Tax Exemption Uncertainty | And Other Takeaways from the Heckerling Estate Planning Conference
• Dividends, Shareholder Signals & Present Value
• A Little Planning—A Lot of Tax Savings | Charitable Giving Prior to a Business Sale
• Should You Conduct a Shareholder Survey? | Five Reasons Why It’s a Good Idea
• Did Spirit Airlines’ Board Ask the Ultimate Fairness Question?

2022 Issues

Mercer Capital’s Value Matters^® 2022-03

• All in the Family Limited Partnership
• What Do the Midterm Elections Mean for Your Business?
• Recession, Expectations & Value
• Beway Provides Conflicting Guidance re Statutory Fair Value in New York
• These Loafers Are Made for Walkin’ | Italian Shoemaker, Tod’s, Opts Out of the Public Markets

Mercer Capital’s Value Matters^® 2022-02

• Bear Market Silver Lining? An Estate Planning Opportunity
• Your Company Has a Dividend Policy
• Breaking Up Is(n’t) Hard to Do
• The Importance of Quantitative Methods to Derive Marketability Discounts | Nelson v. Commissioner

Mercer Capital’s Value Matters^® 2022-01

• 2022 Tax Update for Estate Planners and Family Businesses
• The Key Person Discount in Light of the Integrated Theory of Business Valuation
• Built Ford “Family” Tough
• Family Business Dividend Survey Results

2021 Issues

Mercer Capital’s Value Matters^® 2021-03

• Charting the Course of the Build Back Better Bill
• A (Not So) Bold Prediction | The Rise of Non-Family Equity Capital in Family Businesses
• The Myth of the 25% – 45% “Typical” Range of Restricted Stock Discounts Must Die
• Should You Acquire a Public Company? | Sanderson Farm Case Study

Mercer Capital’s Value Matters^® 2021-02

• What Does the Step-Up in Basis Tax Proposal Mean for High Net Worth Individuals and Family Businesses?
• Capital Gains Taxes and Family Businesses
• Quantifying Expected Holding Period Premiums from Restricted Stock Transactions
• Estate of Michael J. Jackson v. Commissioner | Key Takeaways

Mercer Capital’s Value Matters^® 2021-01

• 2021 Tax Update
• Family Business Director’s Planning for Estate Taxes To-Do List
• Restricted Stock Discounts: The Expected Holding Period Premium Is the Cause
• Premiums for Control & Valuing Control Shares
• Neiman Marcus: A Restructuring Case Study

2020 Issues

Mercer Capital’s Value Matters^® 2020-04

• The 1991 Silber Study of Restricted Stock Discounts: We Should Have Known Then
• Why Your Family Business Has More Than One Value
• The Top 10 Things Estate Planners Should Know About Business Valuation
• Gin, Business Valuation, and Ryan Reynolds: Earn-Outs in RIA M&A

Mercer Capital’s Value Matters^®2020-03

• A “Grievous” Valuation Error: Tax Court Protects Boundaries of Fair Market Value in Grieve Decision
• Indiana Court of Appeals: No Discounts in Unclear and Mandatory Shareholder Agreement Buyout
• When Is It Too Late to Plan? Takeaways from Moore v. Commissioner
• Complex Valuation Issues in Auto Dealer Litigation Solving the Puzzle
• Major League Sports Teams’ Valuations Beware of Averages and the DCF Method

Mercer Capital’s Value Matters^® 2020-02

• COVID-19 and the Value of Your Business: An Estate Planning Opportunity Due to Lower Valuations
• Looking Back to Look Forward: Five Observations Regarding How Businesses Persevered Through the Great Recession
• Goodwill Impairment Testing in Uncertain Times
• Always Cash Flow and Earning Power: An Excerpt from Mercer Capital’s Private Equity Newsletter
• AICPA Issues New Forensic Services Standard Effective January 1, 2020

Mercer Capital’s Value Matters^® 2020-01

• Jones v. Commissioner
• The Moral of the Story: Passing the “Reasonable Certainty” Test in an Economic/Financial Damages Engagement
• Considering a C Corp Conversion?
• Planning for Estate Taxes To-Do List

2019 Issues

Mercer Capital’s Value Matters^® 2019-02

• Estate of Powell v. Commissioner
• Tax Court Decisions Highlight Need for Competent Appraisal Work
• The Moral of the Story
  • What Not to Do When Valuing a Retail Company
  • The Importance of Investigating and
    Supporting All Major Valuation Assumptions

Mercer Capital’s Value Matters^® 2019-01

• Kress v. U.S. Denies S Corporation Premium and Accepts Tax-Affecting
• Five Reasons to Hire Mercer Capital

2018 Issues

Mercer Capital’s Value Matters^® 2018-02

• Dividend Policy and the Meaning of Life (Or, At Least, Your Business)
• Dividend Reminders: Takeaways from GE
• Making Shareholder Communication a Family Business Priority
• AutoZone Provides Roadmap for Management Succession: The Founder’s Exit Doesn’t Need to Be the End of the Story for Shareholders

Mercer Capital’s Value Matters® 2018-01

• Six Different Ways to Look at a Business
• Valuation Implications of the Tax Cuts and Jobs Act of 2017
• Notice of Proposed Rulemaking – Qualified Business Income Deduction

2017 Issues

Mercer Capital’s Value Matters®2017-01

• Differing Expert Witness Valuation Conclusions

2016 Issues

Mercer Capital’s Value Matters® 2016-04

• Use the Interim Time Between Now and the Future Sale of a Business to Wisely Prepare

Mercer Capital’s Value Matters®2016-03

• Characteristics of a Good Buy-Sell Agreement

Mercer Capital’s Value Matters® 2016-02

• Unicorns, Delaware, and Private Company Financial Disclosure: When Should Companies Disclose Valuation Information to Their Owners?
• Unicorn Valuations: What’s Obvious Isn’t Real and What’s Real Isn’t Obvious

Mercer Capital’s Value Matters® 2016-01

• Wisniewski v. Walsh: Bad Behavior (Marketability) Discount in New Jersey
• 10 Ideas for Preparing for Expert Depositions

2015 Issues

Mercer Capital’s Value Matters® 2015-04

• Fairness Opinions in Down Markets
• Rough Quarter for the RIA Industry

Mercer Capital’s Value Matters® 2015-03

• New York’s Largest Corporate Dissolution Case | AriZona Iced Tea
  Tea’d Up for Appellate Review, But It Won’t Happen Owners

Mercer Capital’s Value Matters® 2015-02

• 25 Questions for Business Owners
• Valuation Discounts and Premiums in ESOP Valuation

Mercer Capital’s Value-Matters® 2015-01

• Managing Private Company Wealth is a Big Deal
• Noncompete Agreements for Section 280G Compliance

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2014 Issues

Mercer Capital’s Value Matters®2014-03 [PDF]

• Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective

Mercer Capital’s Value Matters® 2014-02 [PDF]

• Richmond v. Commissioner

Mercer Capital’s Value Matters® 2014-01 [PDF]

• Koons v. Commissioner
• Second Fairness Opinions

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2013 Issues

Mercer Capital’s Value Matters® 2013-06 [PDF]

• The Defining Elements of a Valuation Engagement: They Are More Important Than You Think
• Customary and Not-So-Customary Services in the Litigation Arena

Mercer Capital’s Value Matters® 2013-05 [PDF]

• 8 More Mistakes to Avoid in Valuations According to Tax Court Decisions
• Valuation Strategies for Dealing with the IRS

Mercer Capital’s Value Matters® 2013-04 [PDF]

• 16 Mistakes to Avoid in Valuations According to Tax Court Decisions
• Equity-Based Compensation in the News
• Parris Earns the Accredited Senior Appraiser (“ASA”) Designation

Mercer Capital’s Value Matters® 2013-03 [PDF]

• Your Business Will Change Hands: Important Valuation Concepts to Understand

Mercer Capital’s Value Matters®2013-02 [PDF]

• The Management Interview: Why It’s an Important Piece of the Valuation Process and What You Should Expect

Mercer Capital’s Value Matters® 2013-01 [PDF]

• The Level of Value: Why Estate Planners Need to Understand This Critical Valuation Element of a Buy-Sell Agreement
• Personal Productivity Corner: More Things Google

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2012 Issues

Mercer Capital’s Value Matters® 2012-06

• Dispute Analysis Issues: When to Call in a Business Appraiser
• Year-End is Upon Us

Mercer Capital’s Value Matters®2012-05

• It’s Not Too Late to Call with Your Year-End Gift Tax and Trust-Related Valuation Needs
• Veteran Bank Analyst Jeff Davis Rejoins Mercer Capital
• “Wait and Formulate” as an Expert Witness

Mercer Capital’s Value Matters®2012-04

• The 2012 Gifting Opportunity: What Estate Planners Need to Know to Prepare – A Q&A with Tim Lee
• The Pros and Cons of Electing an S Corporation Status
• Tax Court Case Update: Wimmer v. Commissioner

Mercer Capital’s Value Matters® 2012-03

• The 2012 Gifting Opportunity
• Wandry v. Commisioner
• 2012 NCEO Annual Conference Recap

Mercer Capital’s Value Matters® 2012-02

• Fairness Opinions: Q&A from an ESOP Perspective
• Choosing a New ESOP Appraiser

Mercer Capital’s Value Matters® 2012-01

• Is the Promissory Note in Your Buy-Sell Agreement Fair to All Parties?
• Estate of Giustina v. Commissioner

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2011 Issues

Mercer Capital’s Value Matters® 2011-06

• $11 Million or $178 Thousand? New Jersey Appellate Court Upholds Book Value in Buy-Sell Agreement
• An Industry Expert or Deal Expert: Which is the Best Choice When Transacting Your Business?

Mercer Capital’s Value Matters® 2011-05

• The Top Ten Things Estate Planners Should Know About Business Valuation
• Department of Labor Delays Action on Proposed Regulation of Definition of a Fiduciary

Mercer Capital’s Value Matters® 2011-04

• New York Statutory Fair Value: Matter of Giaimo
• IRS Releases “Discount for Lack of Marketability Job Aid”

Mercer Capital’s Value Matters® 2011-03

• The ESOP Valuation Process

Excerpts from the new book, A Reviewer’s Handbook to Business Valuation: Practical Guidance to the Use and Abuse of a Business Appraisal

• Chapter 9: Valuation Discounts and Premiums
• Chapter 17: Alleged Errors of Omission by Appraisers

Mercer Capital’s Value Matters® 2011-02

• Tax Court Upholds Daubert Challenge to Appraisal Expert
• Out of the File Cabinet: The Ideal Time to Review Your Buy-Sell Agreement

Mercer Capital’s Value Matters® 2011-01

• Reviewing Business Appraisal Reports: The Devil is in the Details
• Changing ESOP Appraisers: Why It Might Be Necessary and How to Accomplish It

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2010 Issues

PDF Mercer Capital’s Value Matters® 2010-05
“Managing Complicated Multi-Tiered Entity Valuation Engagements”

PDF Mercer Capital’s Value Matters® 2010-04
“The Time to Gift is Now”

PDF Mercer Capital’s Value Matters®2010-03
“The 1042 Rollover: Resurrected Interest in Tax Benefits for Selling Shareholders in ESOP Transactions”

PDF Mercer Capital’s Value Matters® 2010-02
“Legislation Update: Grantor Retained Annuity Trusts”

PDF Mercer Capital’s Value Matters® 2010-01
“Opportunities Amid Uncertainty?”

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2009 Issues

PDF Mercer Capital’s Value Matters® 2009-10
“Judicial Opinions Regarding Fractional Interests in Real Estate”

PDF Mercer Capital’s Value Matters® 2009-09
“The Six Defining Elements of a Process Buy-Sell Agreement”

PDF Mercer Capital’s Value Matters® 2009-08
“What is the Fair Market Value of Your Promissory Note?”

PDF Mercer Capital’s Value Matters® 2009-07
“Interest Rate Swaps and Fair Value”

PDF Mercer Capital’s Value Matters® 2009-06
“Business Value During & After the Recession”

PDF Mercer Capital’s Value Matters® 2009-05
“For Banks in 2008, a Recession Gloomed”

PDF Mercer Capital’s Value Matters® 2009-04
“Selecting a Business Appraiser”

PDF Mercer Capital’s Value Matters® 2009-03
“How ESOPs Work”

PDF Mercer Capital’s Value Matters® 2009-02
“S Corporation Banks Beware”

PDF Mercer Capital’s Value Matters® 2009-01
“Recession, Market Meltdown Put Focus on Goodwill Impairment”

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2008 Issues

PDF Mercer Capital’s Value Matters® 2008-12
“Consider the Alternate Valuation Date”

PDF Mercer Capital’s Value Matters® 2008-11
“Grantor Retained Annuity Trusts: A Perfect Storm”

PDF Mercer Capital’s Value Matters® 2008-10
“IRS Provides New Tax Incentives for Banks in Change of Control Transactions”

PDF Mercer Capital’s Value Matters® 2008-09
“Fairness Opinions: Q&A from an ESOP Perspective”

PDF Mercer Capital’s Value Matters® 2008-08
“Sub-Chapter S Coversions for Banks”

PDF Mercer Capital’s Value Matters® 2008-07
“Valuation Best Practices: Hedge Fund Investment Portfolios”

PDF Mercer Capital’s Value Matters® 2008-06
“Court Demands NAV Reduced by 100% of BIG Tax Liability”

PDF Mercer Capital’s Value Matters® 2008-05
“Treatment of Life Insurance Proceeds in Buy-Sell Agreement Valuation”

PDF Mercer Capital’s Value Matters® 2008-04
“Customary and Not-So-Customary Services in the Litigation Arena”

PDF Mercer Capital’s Value Matters® 2008-03
“FINRA Rule 2290 Aims to Increase Transparency of Fairness Opinions”

PDF Mercer Capital’s Value Matters® 2008-02
“An Overview of SFAS 141R”

PDF Mercer Capital’s Value Matters® 2008-01
“2007: A Year to Forget for Banks”

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 2007 Issues

PDF Mercer Capital’s Value Matters® 2007-12
“Good Things Come to Those Who Don’t Wait”

PDF Mercer Capital’s Value Matters® 2007-11
“Reasonable Valuation of Illiquid Mortgage-Backed Securities”

PDF Mercer Capital’s Value Matters® 2007-10
“A Guide to Reviewing Purchase Price Allocations”

PDF Mercer Capital’s Value Matters® 2007-09
“Valuing Trust Companies Requires Special Attention”

PDF Mercer Capital’s Value Matters® 2007-08
“Empirical Evidence Confirming the Importance of a Transaction Advisor”

PDF Mercer Capital’s Value Matters® 2007-07
“Recent Cases Highlight Problem Areas in Buy-Sell Agreements”

PDF Mercer Capital’s Value Matters® 2007-06
“Palm, Inc. – Leveraged Recapitalizations and Business Value”

PDF Mercer Capital’s Value Matters® 2007-05
“Often Overlooked Yet Important Items in Process Buy-Sell Agreements”

PDF Mercer Capital’s Value Matters® 2007-04
“A Review of Buy-Sell Agreements: Ticking Time Bombs or Reasonable Resolutions?”

PDF Mercer Capital’s Value Matters® 2007-03
“The Clock is Ticking for Section 409a Compliance”

PDF Mercer Capital’s Value Matters® 2007-02
“ESOARS to Offer Market Pricing of Employee Stock Options?”

PDF Mercer Capital’s Value Matters® 2007-01
“Buy-Sell Agreements: Two and a Tie-Breaker”

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 2006 Issues

PDF Mercer Capital’s Value Matters® 2006-12
“Multiple Appraiser Process Buy-Sell Agreements”

PDF Mercer Capital’s Value Matters® 2006-11
“Life Insurance Proceeds in Valuation for Buy-Sell Agreements”

PDF Mercer Capital’s Value Matters® 2006-10
“A New Approach to Fair Value: Welcome to FAS 157”

PDF Mercer Capital’s Value Matters® 2006-09
“Not All Classes of Equity Were Created Equal”

PDF Mercer Capital’s Value Matters® 2006-08
“IRS Code Section 409A and Valuation”

PDF Mercer Capital’s Value Matters® 2006-07
“The Estate of Charlotte Dean Temple”

PDF Mercer Capital’s Value Matters® 2006-06
“8 Things You Need to Know About Section 409A”

PDF Mercer Capital’s Value Matters® 2006-05
“USPAP Sanctions Use of QMDM?”

PDF Mercer Capital’s Value Matters® 2006-04
“Mercer Capital is Now an ESOP Company”

PDF Mercer Capital’s Value Matters® 2006-03
“Rate & Flow: An Overview of an Alternative Approach to Determining Active/Passive Appreciation in Marital Dissolutions”

PDF Mercer Capital’s Value Matters® 2006-02
“Watch Out For IRC Section 409A”

PDF Mercer Capital’s Value Matters® 2006-01
“Private Initial Offerings”

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2005 Issues

PDF Mercer Capital’s Value Matters® 2005-12
“Second Fairness Opinions”

PDF Mercer Capital’s Value Matters® 2005-11
“An Overview of Personal Goodwill”

PDF Mercer Capital’s Value Matters® 2005-10
“Valuing Employee Stock Options:
A Guide for Choosing Either Lattice or Black Scholes”

PDF Mercer Capital’s Value Matters® 2005-09
“Sprint Nextel and Nextel Partners: What is Fair Market Value?”

PDF Mercer Capital’s Value Matters® 2005-08
“Your Corporate Buy-Sell Agreement: Ticking Time Bomb or Reasonable Resolution?”

PDF Mercer Capital’s Value Matters® 2005-07
“Embedded Capital Gains, One More Time: Estate of Jelke v. Commissioner”

PDF Mercer Capital’s Value Matters® 2005-06
“Corporate Value Engineering: Is Your Business Ready for Sale?™”

PDF Mercer Capital’s Value Matters® 2005-05
“What We DO Is More Important Than What We SAY”

PDF Mercer Capital’s Value Matters® 2005-04
“Announcing a New Blog – ‘Mercer on Value'”

PDF Mercer Capital’s Value Matters® 2005-03
“What’s Fair is Fair?”

PDF Mercer Capital’s Value Matters® 2005-02
“When is Fair Market Value Determined? Estate of Helen M. Noble v. Commissioner”

PDF Mercer Capital’s Value Matters® 2005-01
“Proposed USPAP Revisions Highlight the Factors of the Quantitative Marketability Discount Model”