There can be a multitude of reasons for identifying a probable range of value for a business entity. Different types of valuations require various levels of complexity and effort. Valuations are quoted on an individual basis where the price is reflective of the degree of complexity of the project.

Primary Reasons for Valuations

1. Sell Your Business at Fair Market Value (FMV)
2. Business Loan
3. Merger, Acquisition or Stock Offering
4. Estate Planning
5. Transfer to a Trust
6. Divorce Settlement
7. Litigation
8. To Settle an Insurance Claim
9. To Set Up an Employee Stock Ownership Plan (ESOP)

Tax liability issues sometimes become progress-limiting obstacles causing significant delays and/or even transaction failures. With a little forethought and planning, appropriate tax mitigation strategies can significantly increase the net payout to an owner on the sale of a business.

Otis Enterprises, Ltd. helps you determine the most appropriate structure of the deal to minimize tax implications. Our preference is to determine the "net proceeds" up front so that the seller can identify a "walk away" bottom line selling price at the beginning of the ownership transfer process.

As a rule, there are minimum-sized deals with which we work out tax mitigation strategies. For S Corps, LLCs, LLPs, Partnerships, and Sole Proprietors the minimum taxable gain is targeted at $500,000. The minimum for C Corps is a $1 million taxable gain.