Multi-disciplinary Valuation - Estate Planning Purposes

The founder of a family-owned business passed away holding various interests in holding companies with an aggregate asset value of approximately $650 million. The holding companies primarily maintain investments in real estate, marketable equity and fixed income securities, and private equity. In addition to the estate tax reporting requirements, the client also needed the valuations completed within a short timeframe in order to facilitate other shareholder transactions. With significant timing constraints, and over 250 properties involved, Stout was able to demonstrate its significant resources and expertise in complex valuation matters.

Stout was engaged and had approximately one month to complete the valuation of the real property and subject entities. As one of the largest valuation firms in the country focused on trust and estate valuations, our real estate appraisal and business valuation professionals successfully completed the engagement prior to the deadline. Given that a significant portion of the real property portfolio being similar in nature (i.e., ground leases on commercial and retail properties under similar master leases) and located in one state, Stout identified an opportunity to value a large portion of the real property on a portfolio approach within one narrative report. This created significant efficiency and resulted in significant savings for the client in terms of professional fees and review time.

Stout’s business valuation team worked in conjunction with the real estate appraisal team, relying upon the real estate appraisal work within the business entity valuations. The business entity valuations focused on supporting valuation discounts which account for the lack of control and lack of marketability associated with the minority interests being valued. In addition, because the main entity was a C Corporation with significantly appreciated assets, the report was prepared to support a built-in gains tax liability (a dollar-for-dollar reduction to value).

Stout leveraged its multi-disciplined valuation team to execute the engagement efficiently and within the timing requirements.

Related Professionals

All Related Professionals