Tuesday, February 3, 2009

409A Does Not Require A Professional Valuation

Internal valuation is permitted, although the burden of evidence shifts.

"That is not to say that an independent appraisal may not be advisable or worthwhile. In fact, if done in the manner specified in the final regulations, a valuation will create a presumption that the valuation of the stock reflects the fair market value of the stock, which presumption is only rebuttable by a showing that the valuation is grossly unreasonably."

No comments: