When an estate includes a family LLC, an S-corp, or a small company with no public stock price, “value” becomes a moving target. One heir may see a thriving business. Another may see an asset they cannot sell.
In Georgia estate disputes, that gap often turns into litigation because the number affects everything, including tax reporting, distributions, and any buyout discussion. This post explains what valuation experts do, why discounts and buyout pressure matter, and how a valuation strategy can shape the outcome.
Closely Held Business Valuation
A closely held interest rarely has a ready market. Valuation experts typically aim for fair market value, which is the price a willing buyer and seller would agree to when neither feels forced and both know the relevant facts. For estates, the analysis often starts with financial statements, tax returns, and cash flow, then moves to the company’s risks, industry conditions, and ownership terms.
Ownership terms matter more than people expect. Transfer restrictions in an operating agreement, limits on distributions, or a requirement that remaining owners approve a sale can change what a buyer would pay. Those document-based limits often drive the valuation fight as much as the company’s performance.
Estate Administration Duties and Appraisal Steps
Georgia law expects a personal representative to settle the estate “with as little sacrifice of value as is reasonable.” That duty can clash with real-world pressure to liquidate quickly or accept a low buyout.
Georgia probate practice also requires an inventory in many estates. Representative generally estimates fair market value even when a formal appraisal does not occur. When heirs contest the number, they often retain competing experts and push for a more formal valuation process.
Practical Leverage for Beneficiaries
These fights often hinge on a few pressure points. Discounts can spark long debates, especially when the interest is small or hard to sell and each side argues for a different reduction.
Buyout talks bring their own tension when one party controls the company’s checkbook or insists on a number that feels disconnected from the business’s real performance. Gaps in the records also matter.
Missing ledgers, personal expenses mixed into operations, or unclear transactions with family members can tilt a valuation in either direction and give beneficiaries room to challenge the numbers.
We handle Georgia estate litigation, including disputes where a closely held business drives the value of the estate. Reach us at 1-866-214-7036 or submit a request online.