| Session Description
Cross-border, multi-tiered entity structures present some of the most complex challenges in business valuation. From navigating tax jurisdictions and ownership tiers to applying appropriate discounts and reconciling U.S. and foreign standards, these valuations require both technical rigor and strategic foresight. In this session, valuation expert Nainesh Shah (Complete Advisors) and attorney Sean Tevel (Holland & Knight LLP) will explore the interplay between legal structuring and valuation methodologies. The discussion will highlight key risks, IRS scrutiny areas, and practical approaches to defending valuation conclusions in both planning and controversy contexts.
Key Takeaways
· Common structural features of cross-border, multi-tiered entities (e.g., LLCs with foreign subsidiaries, joint ventures, holding companies). · Valuation challenges: data availability, foreign GAAP/IFRS vs. U.S. GAAP, translation, tax-affecting, and intercompany flows. · Impact of IRC §§ 367, 482, 2701/2703 and transfer pricing considerations on value. · Approaches to applying discounts for lack of control and marketability in tiered entities. · IRS and court perspectives: lessons from recent cases and audit trends. · Coordinating valuation and legal strategy to withstand scrutiny in estate, gift, and corporate tax contexts. · Practical strategies for advisors: documentation, supportable assumptions, and cross-disciplinary collaboration.
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