Financial Reporting Valuation

280G Golden Parachute Valuation

Mercer Capital provides independent valuation opinions to assist public companies with IRC Section 280G compliance

Acquisitions of public companies or other change-of-control events can trigger the application of IRC Section 280G, also known as “golden parachute” payments in the case of executive compensation agreements. Proper tax planning can help companies comply with Section 280G and avoid significant tax penalties associated with these types of payments.

Mercer Capital can assist management of the buyer or seller by measuring the value of the golden parachute payments, including the impact of accelerated stock options, restricted shares, and non-competition or non-solicitation agreements.

Mercer Capital has been providing objective valuations for tax compliance since 1982. Our opinions are well-reasoned and well-documented, and have been accepted by the largest U.S. accounting firms and various regulatory bodies, including the SEC and the IRS.

Our professionals are nationally recognized as leaders in the valuation industry, and hold the most rigorous credentialing designations, including the CFA, ASA, and CPA, among others. Mercer Capital has the institutional capability to tackle even the most uncommon or complex valuation issues.

Contact a Mercer Capital professional for more specific information.

Professionals

Travis W. Harms, CFA, CPA/ABV

President

Lucas Parris, CFA, ASA-BV/IA

Senior Vice President

J. David Smith, ASA, CFA

Senior Vice President

Sujan Rajbhandary, CFA, ABV

Senior Vice President

Samantha L. Albert, ASA, ABV

Vice President

Research and Resources

Presentation
Non-Compete Agreements: Valuation Issues in GAAP and Tax Engagements
Non-compete covenants are a staple in most purchase agreements. These agreements are usually designed to protect the buyer in the event that one of the selling shareholders/managers decides to pocket their deal proceeds and start a competing venture across the street. This presentation covers background on non-competes, reviews key accounting guidance and tax court cases, and provides detailed valuation examples.