Situation
Multiple partners owned a business that was organized into several entities. They had a sale pending with a strategic acquirer. One owner sought to donate shares to a charitable organization, and he needed expertise to plan for the sale transaction while achieving his goals, and also while complying with IRS requirements.
Merrimack Business Appraisers’ Approach
Lou Pereira’s specialties include preparing business valuations involving fractional ownership interests and complying with IRS requirements.
For the individual entities and the overall entity, Pereira prepared the business valuation, which included determining the fractional valuation for this owner and the dollar value of the charitable donation to be made. Pereira calculated the number of shares that would be donated to the charity, and then the strategic buyer would purchase those shares as part of the sale of the business.
Time was of the essence because there was a deal pending. Pereira worked diligently to ensure that the valuation was completed on the necessary schedule to close the deal.
Valuation Outcome
The sale of the business was completed without delay and the owner’s charitable contribution complied with IRS requirements.
