Specialized & Complex Valuations

We can work with any fund of any size; from 5 portfolio companies to 100+ investments, we can handle your valuation needs.

Absolutely. We have comprehensive knowledge of some of the most complex capital structures, vesting and participation conditions, and synthetics. We also understand that these are changing monthly. We are capable of navigating and supporting your valuation needs through this with the level of precision you expect.

We work with your team to establish an efficient valuation process. We work backwards off your timeline to fit your reporting needs and guarantee we don't cause any delays on your end.

Yes, we're incredibly knowledgeable of what's required to convey personal goodwill and are happy to provide consulting advice regarding whether or not a personal goodwill transaction is feasible.

Absolutely. We've done it before and are happy to help again. We offer a streamlined process to help you meet your transaction timing goals.

Extremely. Each of our personal goodwill engagements is conducted as if we know the IRS will be reviewing the work. Our work has been used in insurance underwriting for tax positions and undergoes a rigorous review for scrutiny.

Yes. The size of the subject equity interest directly influences the fair market value of the subject equity block. For example, a controlling interest in a closely held business is worth more than a minority interest in the same company due to the lack of control attributes found by the minority shareholders. HDH will provide an opinion of value of 100% of the equity of the company as well as opine to the appropriate lack of control discount for the subject interest.

There are countless factors that influence the value of a company. But major considerations include i) accounting for all discretionary and non-recurring income and expenses when calculating the “normalized” earnings of the business; ii) sourcing raw materials from numerous supplier relationships; iii) generating revenue from a diversified customer base; and iv) building out a deep leadership team.

Our business valuations are used by shareholders and their advisors to help ascertain what the true fair market value of the subject company is worth. We utilize various valuation methodologies to make such opinions including the discounted cash flow method, capitalization of earnings method, guideline public company method, guideline transaction method, and adjusted net asset value method. Our valuations equip shareholders with an educated opinion of current fair market value that can be relied upon when negotiating the sale price with third parties.

A proper valuation allows you to maximize the use of your lifetime gift tax exemption ($13.61 million in 2025, adjusted for inflation). By knowing the exact value, you can transfer the maximum amount of business interests to the next generation without wasting exemption or accidentally exceeding it. Valuation discounts for minority interests or lack of marketability can significantly increase what you can transfer tax-free.

Key timing includes: Before making gifts of business interests to family members, when establishing or funding trusts with business assets, during buy-sell agreement creation or updates, as part of comprehensive estate plan development, periodically (every 3-5 years) to update estate plans as business value changes, within a reasonable time before death for estate tax return preparation

Business valuation is crucial for succession planning, providing an objective financial basis for ownership transfer. The IRS also requires substantiation for any significant gift or estate tax reporting. A qualified, independent appraisal provides defensible documentation if the IRS challenges your reported values. Without proper support, the IRS can substitute its own valuation, potentially triggering significant tax liabilities and penalties.