October 2013, Volume 19, Number 1

Posted on September 26, 2013  

Next Meeting: October 17, 2013

Place: Schechter Dokken Kanter

100 Washington Avenue South, Suite 1600, Minneapolis, MN

Time: Noon – 1:30 PM

Topic: Speaker: Michael Gregory

What IRS Reviewers Look for when Evaluating a Business Valuation Report

Based on his experience at the IRS and his review of over 40 reports from some of the top experts in the field, Mike Gregory discusses what IRS reviewers look for when evaluating business valuation reports.   Each division of the IRS views the business valuation report with specific criteria in mind.  Participants are introduced to the IRS’s organizational structure and explore how the IRS handles an estate and gift tax business valuation from classification to audit.   Professional standards are reviewed to demonstrate how the IRS uses these standards.

Meeting Schedule for Calendar Year 2013-2014

November 21, 2013                         Michael Meagher – Valuing Start-ups

December 19, 2013                         Annual Valuation Contest – Ingo Schulz will prepare and present recent sales of interest.  This is a joint meeting with ASA.

January 16, 2014                               TBA

February 5, 2014                               24th Annual Business Valuation Conference at University of St. Thomas

March 10, 2014                                  Joint with ASA; ASA will host-note: we meet on a Monday

April, 2014                                          No meeting in April

May 15, 2014                                      TBA

June, July, August, 2014                                No meetings during the summer

September 18, 2014                        Annual Elections and presentation

Thank you: to Bill Herber for presenting a review of Option Models at our September meeting.  It is clear there are many models from which to choose.  While some are more complicated than others, each claims to produce a reliable DLOM.  In general, most models rely on computer programs which take raw data, run thousands of simulations, and produce a discount.  A number of shortcomings were identified, the most significant being: valuation professionals do not yet have a mathematical formula which allows them to reproduce the model-generated discount.

Congratulations: 2013-2014 Officers and Board Members:

President:                           Mike Meagher

Vice President:                 John Heidebrecht

Secretary/Treasurer:      Jennifer Schiefert

Board Members:              Heather Burns, William Herber, Joseph Kenyon, Ginger Knutsen, Karen Kritta, Charles Miller, and Richard Thorsen

If you have questions or comments, please do not hesitate to contact Mike Meagher (mwmeagher100@gmail.com) or Dennie (odennie@hotmail.com).