Accounting and Business Valuation Firm Gettry Marcus Demystifies a Common Valuation Discount Question

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Leading business valuation firm Gettry Marcus CPA, P.C. discusses a common valuation discounts question: "How much of a valuation discount can I get when valuing my company?"

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Gettry Marcus is "Always Looking Deeper" to build value for our clients.

"How much of a valuation discount can I get when valuing my company?" This is a question posed by many business owners, especially regarding the most commonly applied discounts, lack of control and lack of marketability. Many clients believe that discounts for these items are nearly automatic. In reality, discounts must be well supported by both the facts of the specific matter and the results of the established body of empirical evidence that attempts to quantify the various valuation discounts.

An opposing party, whether it is the IRS, a withdrawing owner, or a divorcing spouse, will not (and should not) accept valuation discounts that are not properly buttressed by a thorough analysis. Therefore, it is very important that the business appraiser base the discount conclusion on the available evidence, linking the findings of the empirical studies to the facts and circumstances at hand.

There are a number of circumstances where discounts may not apply at all. Examples of these circumstances could be dissenting or oppressed shareholder actions, divorce actions, and several other circumstances. There are also some valuation methods that, by their nature, result in a value that needs no further discounts, as they are already incorporated into the application of the method. In these cases, the discount is appropriate, but it is not explicitly visible.

Gettry Marcus's business valuation reports are supported by a thorough analysis and proper application of the relevant data, including information derived to determine valuation discounts. In this way, valuation opinions are best suited to withstand scrutiny.

“Factors in determining the considered evaluation discount should not double-count other factors that were part of the overall analysis,” says Russ Glazer, CPA, Partner at Gettry Marcus CPA, P.C., and a member of the firm’s Business Valuation and Litigation Services Group.

Gettry Marcus CPA, P.C., a top New York City and Long Island CPA firm with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation, Litigation and Forensic Accounting Groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.

Gettry Marcus is "Always Looking Deeper" to build value for our clients.

Media inquiries: Contact Fayellen Dietchweiler at 516-364-3390 ext. 225 or at fdietchweiler(at)gettrymarcus(dot)com.


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Scott Darrohn
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Fayellen Dietchweiler
Gettry Marcus
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