By popular demand, BVR is hosting Nancy Fannon and Keith Sellers for a special encore presentation of the hottest topic of the year:  Taxes and Value: Guidance on the S Corporation Valuation Puzzle. In this replay of the blockbuster spring session the presenters challenge traditional notions about the differences in value between a pass-through entity and the public market C corporation and reveal an abundance of research that shows that shareholder-level taxes do indeed affect a firm’s value. The “S-corp experts” will guide participants through the evidence they need to support their valuation conclusions with a new, more direct approach to pass-through entity valuation. As requested we will have extra time set aside for live Q&A.

• Background to tax issue and use of prior cash flow based methods
• Pass-through entity valuation models
• Fundamental financial principles
• Deriving the cost of capital
• Matching cost of capital to subject company
• impact of personal taxes
• Tax capitalization theory
• Equilibrium pricing
• Research relating to tax affects on value
• Tax Acts
• Studies prior to 2003 Act
• Studies based on 2003 Act
• Assumptions employed in the cash flow based models
• Proposal for alternative method
• How academics have measured the extent of tax capitalization
• How methodology is applied to data used for private company valuations
• Demonstration of the calculation of the embedded tax in the market return
• Effects of magnitude of adjustment depending on size of cost of capital
• Affect of magnitude of adjustment if a WACC is employed

• Understand the background to the pass through entity tax issue use of prior cash flow based methods
• Understand pass-through entity valuation models
• Learn about the effect that taxes have on value
• Learn of the research relating to the affect of taxes on value
• Learn of an alternative method for valuing pass through entities
• Learn of areas for further research into the effect of taxes on value