How Volatile Interest Rates Affect the Cost of Capital and Company Valuations
Spiraling inflation over the last several years prompted the Federal Reserve to raise interest rates significantly. Higher interest rates can influence business valuations by increasing the inputs used to develop a company’s cost of capital, particularly the risk-free rate and the company’s cost of debt capital, resulting in a higher discount rate and a lower business value indication.
Succession Planning in 2026: Employee Stock Ownership Plans and the New Estate Tax Landscape
Employee Stock Ownership Plans (“ESOP”) are gaining traction as a flexible solution that offers liquidity, tax advantages, and company continuity. While the One Big Beautiful Bill Act eased urgency for tax planning by permanently increasing estate and gift tax exemptions, ESOPs remain a compelling option for long-term planning.
The One Big Beautiful Bill Act’s Effect on the Value of S Corporations and Pass-Through Entities
Recent tax legislation, specifically the Tax Cuts and Jobs Act (“TCJA”) and the newly enacted One Big Beautiful Bill Act (“OBBBA”), directly affected the valuation of S corporations. Temporary provisions under the TCJA that required a weighted S corporation equity adjustment multiple method have been replaced by permanent provisions under the OBBBA.
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Perspectives
October 2025 Perspectives
- Business Valuation Implications of the One Big Beautiful Bill Act
- Illiquid for Longer: Private Equity Funds and Financial Opinions
- Was the Jury Reasonably Certain in Huntsman?
July 2025 Perspectives
- Tax Court Allows Tax-Affecting for the Discounted Cash Flow Method in Pierce v. Commissioner
- Conflict Transactions and the Evolution of the Fairness Opinion Landscape
- The Application of the Relief from Royalty Method for Intellectual Property Valuation
April 2025 Perspectives
- Nuances with Respect to Valuing a Controlling Ownership Interest
- Proposed Regulation Changes to Circular 230
- Estate Planning and Buy-Sell Agreements After the Connelly Decision