Tax Valuation & Advisory Services

Eton offers accurate, reliable, and court-defensible tax valuations in 10 days or less. We help you:

✅  Stay compliant with tax laws

✅  Avoid over- or under-paying taxes

✅  Reduce the risk of penalties

Trusted By Over 1,000 Companies

Eton's Tax Valuation Services

Eton’s tax valuation and advisory services are built around your specific needs.

You’ll get a thorough report that details an overview of your business, drivers of value, valuation results, and our justification for it. 

Should this be challenged, we defend our valuations in court. And throughout the process, you’ll get expert guidance from our Big-4 trained consultants who are well-versed in tax laws.

Determine the fair market value of private company stock for employee stock options. Ensure compliance with IRS 409A regulations.

Perform fair value assessments of tangible and intangible assets acquired in a business combination, ensuring compliance with financial reporting standards.

Appraise intellectual property assets, such as patents, trademarks, copyrights, licenses, and customer lists, which are critical components of many M&A transactions.

Assess the fair market value of assets for estate and gift tax purposes, ensuring compliance with IRS requirements.

Portfolio Valuation

Amid volatile markets, potential conflicts of interest, and regulatory changes, our seasoned professionals offer specialized expertise in financial reporting compliance, risk management, and asset valuation.

Determine the value of businesses in mergers and acquisitions to ensure fair pricing and tax compliance.

Assess the fair value of complex securities like options and derivatives to ensure accurate and compliant tax reporting.

Our Tax Valuation Process

Day 1
Day 2
Day 8
Day 10
Forever
Information Collection
Valuation Modeling and Analysis
Draft Report Delivered; Client Review and Approval
Final Report Delivered
Audit Support
"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

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FAQs

What is a valuation for tax purposes?

A tax valuation determines the fair market value of your business or assets for tax purposes.

It’s essential for accurate tax reporting, ensuring compliance with tax laws, and avoiding penalties.

It helps you understand the value of your assets when calculating taxes on sales, transfers, or other taxable events.

Valuation experts use three primary tax valuation methods:

  1. Cost Approach: This method values an asset based on the cost to replace or reproduce it, minus depreciation. It’s often used for tangible assets like equipment or real estate.

  2. Income Approach: This method values an asset based on the income it generates, typically using discounted cash flow (DCF) analysis. It’s commonly applied to businesses or income-producing properties.

  3. Market Approach: This method determines value by comparing the asset or business to similar ones that have recently sold in the market. It’s often used when there are sufficient comparable sales data available.

Each method has its own strengths and is chosen based on the type of asset being valued and the specific tax regulations that apply.

Beyond these three, experts may also use: 

  • Adjusted Net Asset Method: This method is often used for valuing holding companies or businesses with significant tangible assets. It involves adjusting the book value of the company’s assets and liabilities to their current market value.

  • Excess Earnings Method: This combines elements of the income and asset approaches. It’s often used for valuing businesses with significant intangible assets, like goodwill. The method separates the business’s earnings into those attributable to tangible assets and those attributable to intangible assets.

  • Liquidation Value Method: This method estimates the value of an asset or business if it were sold off quickly, typically under distressed conditions. It’s often used in bankruptcy or insolvency situations.

  • Capitalization of Earnings Method: Similar to the Income Approach, this method estimates value based on a single year’s earnings, capitalized by a rate that reflects the business’s risk and growth prospects. It’s a simpler alternative to the Discounted Cash Flow (DCF) analysis.

  • Industry Rule of Thumb: Some industries have standard multiples or rules of thumb for valuation, such as a specific multiple of revenue or EBITDA. While not as precise as other methods, this can provide a quick estimate of value.

You should consider a tax valuation whenever you face significant tax events, such as estate planning, business restructuring, asset sales, or transferring ownership.

It’s also crucial during mergers and acquisitions, or when issuing employee stock options, to ensure all tax implications are properly addressed.

A tax valuation considers various factors, such as:

  1. The type of asset or business
  2. Market conditions
  3. Financial performance
  4. Comparable sales
  5. Potential growth

For businesses, it might also include intangible assets like intellectual property or goodwill.

At Eton, our tax valuations take 10 days or less. 

While both valuations assess the fair market value of a business or assets, a tax valuation is specifically focused on compliance with tax regulations and is used for tax reporting purposes.

Regular business valuations might focus on other aspects, like selling the business or securing financing.

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