Income, Gift, and Estate Valuation for Succession Planning

The trusted advisors at Cendrowski Corporate Advisors can help you tackle the complexities of succession planning, gift, and estate valuation, along with all tax reporting. We are here to create solutions tailored to your needs while defending against scrutiny from the IRS.

Succession Plans - Income, Estate, and Gift Valuation

Having a succession plan in place for your business—one that includes income, gift, and estate valuation—is vital to every private enterprise and inevitably proves beneficial to both owners and employees.

The Cendrowski Corporate Advisors valuation team can help ensure that your succession plan provides fiscally advantageous and tax-efficient strategies.

When we work with an organization to create a succession plan, we begin by conducting required analyses of income, estate, and gift valuations. Then, we recommend options best suited to the business and its unique circumstances. These could include traditional methods of transferring ownership like gifting or selling to a third party, or alternative structures. For example, selling to an employee stock ownership plan, or ESOP, allows owners to retain control of business decisions and operations while protecting the employment of valued workers.

What Is an ESOP Succession Plan?

An ESOP succession plan beneficial to both owners and employees can be an effective succession planning solution, or a qualified retirement plan. Selling to an employee stock ownership plan (ESOP) allows owners to retain control of business decisions and operations while protecting the employment of valued workers.

Client Success: Estate Valuation for Tax Efficiency

Cendrowski Corporate Advisors performed a valuation of a property management company and accompanying side business activity for estate tax purposes. We were invited to attend meetings regarding the next generation. Our specialists recognized severe shortcomings in the estate tax planning and its impact on the existing entities outside of the scope of the engagement. We discovered a shortfall in the valuation of a real estate appraisal, federal tax returns filed for numerous partnerships that omitted proper step-up in basis at several entity levels, and the first estate income tax return had classified an ordinary loss as a currently unusable passive activity loss. Further, there was an overstatement of revenue. Due to our diligence, corrections were made, resulting in a substantial reduction in annual income taxes on a future sale and a cash tax savings annually for several years of approximately $500,000.