Assessing Key Person Risks
$175
About the Course
This session is the culmination of more than 20 years of experience in determining key person discounts. Discount factors such as lost debt capacity, adequacy of potential replacements, and degree of dependence are reviewed.
Relevant marital, business, and valuation case law is discussed in depth. The importance of key Revenue Rulings and lessons from IRS training manuals are imparted. Finally, findings from extensive key person discount research are shared.
This session provides keen insight into complex valuation issues that frequently arise in litigation, tax, and transactional contexts.
- •How disability and life insurance impact key person discounts
- •When negative key person discounts may be appropriate
- •Apportioning value between key people and vendor or employee contracts
- •The impact of earn-out agreement terms on key person discounts
- •How “probable compensation” should be factored into discounts
- •The significance of “client avalanche” risk
- •The role of “compensation saved” in calculating discounts
- •The effect of eponymous businesses on key person discounts
- •Key “determinants of loss” factors
- •The most important offsets to loss of a key person
Course Leader
Kevin R. Yeanoplos
CPA/ABV/CFF, ASA
Director, Brueggeman and Johnson Yeanoplos, P.C.
Mr. Yeanoplos is the Director of Valuation Services for Brueggeman and Johnson Yeanoplos, P.C. He has valued over 1,000 businesses for purposes including divorce and other litigation, gift and estate taxes, mergers and acquisitions, and ESOPs.
His experience spans numerous industries, including aircraft parts manufacturing, biomedical companies, construction firms, automobile dealerships, restaurants, retailers, and professional practices such as law, accounting, and medical practices.
Mr. Yeanoplos has testified as an expert witness in state and federal courts across the U.S. and has been recognized as a leading expert in accounting and valuation by attorneys listed in The Best Lawyers in America.