Discounts Before The Deal Is DoneDiscounts Before The Deal Is Done
Your client has surprised you with a signed deal to sell his company. Is it too late to engage in effective transfer planning? The answer is, Of course, more benefits could have been derived if your client had spoken with you before hiring an investment banker to find buyers for his company, or at least before he'd signed a letter of intent to sell. Even so, there remain opportunities for meaningful
Radd L. Riebe, managing director, Valuation and Financial Opinions Group, Stout Risius Ross, Inc., C
Your client has surprised you with a signed deal to sell his company. Is it too late to engage in effective transfer planning? The answer is, “no.”
Of course, more benefits could have been derived if your client had spoken with you before hiring an investment banker to find buyers for his company, or at least before he'd signed a letter of intent to sell. Even so, there remain opportunities for meaningful transfer planning. Until the deal is done, there are several discounts that affect the fair market value (FMV) of shares of stock in a company that has agreed to be sold at a stated price.
When a publicly traded company is being merged or s...
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