The Intent
You want to ensure that assets are transferred at appropriate values for tax purposes, avoiding reassessment, penalties, or disputes later.
How I Solve It
I apply the 25 Factors Affecting Business Valuation to determine fair market value of both tangible and intangible assets being transferred. Factor #5: Liquidity, Factor #9: Research & Development, Factor #18: Marketing and Brand, Factor #24: Risk, and Factor #25: Opportunity are particularly important when intangibles are involved.
The 5 Senses Inspection Report provides real-world evidence that the assets have ongoing economic utility.
Experience
It is vital because "What is the tax value of assets in a reorganization?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You obtain asset values that are defensible, supportable, and aligned with tax law expectations, reducing future exposure.