Monthly Archives

June 2014

A Fresh Look at Using the Income Approach to Valuing FLPs

When I value minority interests in a family limited partnership (FLP), I will do an income approach, but I will not enjoy it. All too frequently, the FLP does not generate regular distributions or regular profits. Plus, I’ll have to guess when the FLP is going to be liquidated: five years, 10 years, or perhaps never. By the way, what will the property be worth in five years—or 10 years?

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