January 18, 2024
Marcum Senior Manager Christopher Byrnes writes about reasonable compensation for AAML New Jersey Chapter
AAML New Jersey Chapter
By Christopher Byrnes, Senior Manager, Advisory Services
Excerpt:
Accuracy is not just a goal in business valuation—it’s a necessity. Marcum LLP performs valuations regularly and understands that precise calculations and judicious adjustments are essential for reliable valuations. One of the most critical adjustments we make is determining ’reasonable compensation’ for business owners, an aspect often overlooked yet vital for presenting an authentic financial portrait. This article delves into the nuances of reasonable compensation and its profound impact on business valuation, sharing why it must be carefully assessed to reflect the true economic health of a company.
