July 18, 2018

Update: Business Valuation
and the Tax Cuts and Jobs Act
Q&A with Hitchner, Treharne, and Drysdale

Includes Detailed S Corp Examples

Jim Hitchner has been speaking and writing extensively on the effect of the TCJA on business valuation in 2018. During this process, he has been asked a multitude of questions on the new tax law. In this webinar, Jim brings in S corp expert Chris Treharne, author of the Treharne Model, and Don Drysdale of Gibraltar Business Valuations to answer questions on how the new law changes the way that valuations are done.

Chris and Don will also present detailed examples on how to value an S corp ownership interests under the new tax law, including a presentation of “Bolt-On” models to capture the effect of bonus depreciation and interest expense limitations.

Jim Hitchner, CPA/ABV/CFF, ASA

Managing Director, Financial Valuation Advisors
CEO, Valuation Products and Services
President, The Financial Consulting Group
Coauthor, Discount for Lack of Marketability Guide and Toolkit
Coauthor, Hitchner Pratt Fishman: A Consensus View,
Q&A Guide to Financial Valuation
Coauthor, Financial Valuation Applications and Models, fourth edition

Coauthor, PPC’s Guide to Business Valuations, 28th edition
Former member of the AICPA BV Standards Writing Task Force
Inductee in the AICPA BV Hall of Fame

Chris Treharne, ASA, MCBA

Managing Director, Gibraltar Business Valuations
Nationally recognized expert on valuing S corps
His S corporation valuation model appears in Financial Valuation Applications and Models and Business Valuation and Taxes: Procedure, Law & Perspective (Judge Laro and Dr. Pratt)
Coauthored S Corp white paper distributed by the Treasury Department
Co-hosted national teleconferences on the valuation of S Corps including a private program for IRS business valuation employees
Testified before the Treasury Department in Late 2016

Don M. Drysdale, CPA/ABV, ASA

Managing Member, Gibraltar Business Valuations
Coauthor, Financial Valuation Applications and Models, fourth edition
Lecturer, the AICPA, the ASA, the IBA, NACVA, and various State CPA societies
Guest Lecturer at various universities

Learning Objectives:

You will learn the answers to scores of questions including:

• When was the TCJA known or knowable?
• Why are C corp values so much higher?
• Should I be using effective vs. marginal tax rates?
• How do I handle all the sunset provisions?
• Income approach
  • Can I still use a capitalized cash flow method?
  • Do I have to go to a 10- to 20- year DCF model?
  • Is there an effect on the cost of capital?
• What is the best way to apply the guideline public company method?
• Is the guideline company transactions method valid?
• How do I use so-called bolt-on models?
• How does capital expenditures and bonus tax depreciation impact value?
• How do I model interest expense limitations?
  • Deductible interest expense
  • Non-deductible interest expense
  • WACC
• Are S corp models still valid?
• How do I handle state taxes?
• Are revenues affected?
• What are the industry and other carve-outs?

Handouts: 

• VPS webinar Power Point slides
• Relevant articles
• Following the webinar, purchasers will receive an interactive video of the webinar showing the audio synced to the slide presentation in real time