Closely Held Stock Valuation

Phone: (808) 637-8480

Appraisal of your Closely Held Stock

There are diverse applications for a Closely Held Stock Valuation. Common reasons for the valuation, or appraisal, is for an Estate, Stock Option, and an ESOP Valuation. Often compensation may be given to an employee in the form of stock or stock options. This will require a Closely Held Stock Appraisal, or Closely Held Stock Valuation. Also, the need arises when an investor or investors are interested in purchasing a company. Conversely, if the controlling interest, or owner of the company is considering selling all or part of the company, that person, or persons, will need a Closely Held Stock Appraisal. When an employee is leaving the company, or retiring, and that employee owns stock, the company, or corporation, will need a valuation, in order to determined the feasibility of buying the stock from the departing employee. Another reason for the valuation would be when a company is considering merging or acquiring another company

For relatively small company, it usually suffices to follow the valuation guidelines set forth in IRS Revenue Ruling 59-60. For a company of substantial value, it may be appropriate to follow the guidelines set forth in Financial Accounting Standards, FAS 157.

The IRS, Dept. of Labor, and most auditors will only accept Valuations computed, and documented with supporting exhibits, from an independent expert. Valuations from the investor, the investment management, and the investment management's accounting firm, are not acceptable to the above agencies.


Equity Valuation Associates

Phone: (808) 637-8480

©2013-2023 - Equity Valuation Associates (ERISA Valuation Associates)

Telephone: (808) 637-8480

P.O. Box 91-1297    Waialua, O'ahu, Hawaii    96791