Cogent Valuation often advises business owners on structuring customized valuation provisions for their buy-sell agreements. Cogent Valuation generally performs a valuation of the company that is the initial basis for the buy-sell price. Based on the resulting knowledge of the company’s “value drivers”, it then helps the owners to devise a purchase price provision designed to accurately track changes in value over time. Cogent Valuation’s work in connection with shareholder disputes gives it first hand knowledge of the pitfalls that result in later disputes and how to avoid them.
If the buy-sell agreement is among family members, Cogent Valuation takes care to address the provisions of Chapter 14 of the Internal Revenue Code so that the buy-sell price should establish the value for estate and gift tax purposes.
