Commonly, business partnerships are casually formed without formal documentation. They are then often casually managed and progress to a financial dispute. A business appraiser is then called on to provide the partners with “a number” to facilitate the exit of a partner. However, this valuation process is often clouded by unbalanced capital accounts, personal expenses, unrecorded services and unconventional partnership agreements. Traditional valuation theory does not provide a deep enough tool box to sort out a casually formed and operated partnership. Join Serena Morones to explore the most challenging partnership valuation issues and learn how to address them in a straightforward way.

• Introduction
• Accounting with capital accounts
• Accounting for partner services
• Identifying and adjusting personal expenses
• Expenses incurred by a partner on behalf of the partnership
• Fair value vs. fair market value

• Explain the accounting rules for partner capital accounts, and why capital accounts are important to the valuation conclusion
• Understand the unique accounting rules for partner compensation
• Explain how to address services exchanged for a partnership interest
• Understand the impact of statutory fair value on normalization adjustments