We now have two tax court cases that have “upheld” tax affecting pass-through entities, but the vast majority continue to reject it. Where are we currently on the issue? What are the cost of capital researchers’ positions regarding the impact of taxes on their research? How does the hypothetical buyer factor into the decision? How does current tax law impact an appraiser’s reasoning to tax impact or not to tax impact the earnings stream in valuation?

Learning Objectives

Identify the rationale both for and against tax affecting pass-through entities in valuation.

Evaluate recent case law impacting the decision on whether or not to tax affect.

Assess the impact of tax affecting on valuation.

Apply the due diligence required by appraisers when deciding whether or not to tax impact pass-through entities in valuation.

Bryce Emo, Founder of Sidecar Finance, will discuss the secondary markets, data sources, the various paths to potential liquidity, and creating optionality through timing option exercise.

DISCLAIMER: Not an offer to buy, nor a solicitation to sell securities. Securities business is conducted through Emerson Equity LLC, member FINRA and SIPC. Emerson and Sidecar are not affiliated. All investing involves risk. Speak to your financial/tax professional prior to investing. 

We will discuss the recent Supreme Court decision in Connolly v the Commissioner of Internal Revenue. Come learn how this case could help you meet with business owners, attorneys and litigators to better serve your clients in handling buy sell agreements in a post Connolly world. We will discuss best practices to enhance your service offerings to existing and potential new clients, as well.  

In this discussion, we will share two eye-opening joint case horror stories from 2024, both centered around business valuation challenges. These cases highlight a surprising and increasingly successful strategy being employed by attorneys.

We'll discuss why these developments have led us to re-evaluate the risks of taking on joint matters and explore why some practitioners are making it a New Year’s resolution to phase them out—unless we can identify a viable workaround.

This session will also serve as a call for collaboration: If you are successfully handling joint matters, we’d like to hear about your approach.

Bring your questions, your insights, and your curiosity—We’ll share the details of our experiences and look forward to an engaging discussion.