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What's an S Corp Really Worth?What's an S Corp Really Worth?

Although many business valuation analysts are well-aware of the issue, it's not something estate planners and tax attorneys typically think of when advising clients who own pass-through entities such as S corporations and limited liability companies (LLCs). They should. During the last five years, the issue has dramatically changed the way the Internal Revenue Service and many analysts estimate the

Daniel R. VanVleet, Managing Principal

December 1, 2007

9 Min Read
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Daniel R. Van Vleet, managing director, Duff & Phelps LLC, Chicago

Although many business valuation analysts are well-aware of the “tax-affecting” issue, it's not something estate planners and tax attorneys typically think of when advising clients who own pass-through entities such as S corporations and limited liability companies (LLCs).

They should. During the last five years, the “tax-affecting” issue has dramatically changed the way the Internal Revenue Service and many analysts estimate the value of pass-through entities. The result, too often, has been much higher taxes for clients.

To properly advise clients about wealth preservation strategies, estate planners and tax attorneys need, at minimum, a layman's understanding of the tax-a...

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About the Author

Daniel R. VanVleet

Managing Principal, The Griffing Group

Daniel R. Van Vleet is a Managing Principal in the Chicago office practice of The Griffing Group.  Mr. Van Vleet has extensive experience providing professional valuation advisory and economic analysis services in the fields of litigation, taxation, and corporate transactions. His advisory and analytical services have been provided in a broad range of industries and for a variety of purposes including fairness and solvency opinions, estate and gift taxation, income taxation, board of directors advisory services, shareholder disputes, marital dissolution, breach of contract matters, intellectual property disputes, corporate transaction disputes, bankruptcy and reorganization, purchase and sale advisement, and other litigation, tax, and corporate transaction related matters.

Mr. Van Vleet is a contributing author to seven business valuation books.  He has also lectured extensively and presented numerous advanced education seminars on the subjects of business valuation, pass-through entity valuation, litigation advisory services, and transaction advisory services.  In addition, he has testified as an expert witness at trial in state and federal courts, arbitrations, and depositions. Mr. Van Vleet has served as an adjunct professor of finance at the Kellstadt Graduate School of Business at DePaul University and as a Continuing Education Instructor at Northwestern University.  Prior to joining SRR, Mr. Van Vleet was a Managing Director with the valuation consulting practices of Stout Risius Ross, Duff & Phelps, and Willamette Management Associates.

Mr. Van Vleet is an International Past President of the American Society of Appraisers (ASA) and a former President of the Business Valuation Association of Chicago.  He is also a member of the Association of Insolvency and Restructuring Advisors (AIRA) and serves on the editorial review board for Trusts & Estates magazine.  Mr. Van Vleet has served as the ASA representative to both the International Valuation Standards Council (IVSC) and the Saudi Authority for Accredited Valuers (TAQEEM).  He is also the developer of the Van Vleet Model, which is a widely used pass-through entity valuation model.