Welcome to PARAGON Valuation Group

Paragon Valuation Group Specializes in:

Purchase Price Allocations

After the negotiations and due diligence work is over, it is important to allocate the purchase price of a company or property acquisition to optimize future cash flow and other often overlooked economic benefits. Whether the transaction is treated as a "pooling of interest" or accounted for as a purchase, there are many areas where our services can substantially reduce certain costs and greatly improve cash flows.

Asset Based Financing

While credit worthiness and business prospects are critical to securing financing, lenders routinely consider the collateral value of fixed assets such as real estate, machinery and equipment, office furniture and fixtures, and computer equipment. Our experience appraising assets in every industry is invaluable to providing creditable market and liquidation values for lenders of all kinds under seemingly impossible deadlines. Valuation of your business by our financial experts often complements the asset appraisals for a total financing valuation package.

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ESOP Valuations

Many companies have adopted or are planning to create Employee Stock Ownership Plans (ESOP) or Employee Stock Ownership Trusts (ESOT) as part of their capital structure and compensation programs. An independent valuation of minority interests in the company is mandatory under current law and regulations to protect the employees and support the fiduciary responsibility of the ESOP or ESOT trustees. Our eminently qualified financial valuation consultants follow all the requirements of relevant regulations and IRS Revenue Rulings to provide reliable third-party valuations for the establishment of the plan and for required annual updates.

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Property Tax Studies

Assessments are conducted in various manners and on various classes of property throughout the world, and a carefully planned study to determine the equitableness of the assessed valuation is essential in the management of assets and cash flow in today's environment. Aside from the basic question of value for assessment purposes, it is equally important to document the value of property that is exempt from property taxes in a given jurisdiction. Our experts provide some refreshing and typically financially rewarding insights into this very important area. We complement rather than compete with the efforts by your current property tax appeal consultant by furnishing solid valuation reports to be used in the appeal process.

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Cost Segregation

Our engineering - based expertise has earned us a reputation as the pre-eminent firm specializing in the segregation of construction costs to maximize tax benefits in the U.S. and around the globe. The stealth tax optimization procedures developed by our Tax Engineers assures taxpayers that the maximum percentage of cost allowed by law will be classified as personal property eligible for accelerated depreciation over a shorter life. Tax savings resulting from this increased cash flow are substantial. We can also analyze previously completed projects to recover lost benefits under a new IRS approved procedure.

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Transfer Tax Reduction

Prior to the sale or acquisition of businesses or facilities, we conduct preliminary and detailed studies to quantify the benefits to your firm by reducing transfer taxes due at closing by segregating exempt personal property from taxable real property. We will also provide reports that quantify potential benefits to the buyer by optimizing value segregation between Section 1245 (Personal Property) and Section 1250 (Real Property), reducing ad valorem (property) taxes, and determining insurable values subsequent to closing.

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Real Estate Appraisal Services

An independent opinion of market value is critical for property owners when faced with various situations such as:

Sale or purchase of real estate (what is it worth in the market?)

Allocation of purchase price after acquisition (what is it worth in the market?)

Financing the purchase of real estate (what is it worth in liquidation?)

Financing of new construction or renovation (what will it be worth after completion?)

Property tax appeal (what is the market value and assessed value?)

Section 1031 Tax Free Exchange (what is value of replacement property?)

Valuation of business enterprise (what is it worth to the business?)

Condemnation in taking under eminent domain by government agency (what is it worth in the market?)

Right-of-way and easement negotiations (what is it worth in the market?)

Selection of the right appraiser who has experience in valuing your type of property, who considers all the appropriate factors that may impact value, who is completely unbiased and independent, who will recommend the level of detail necessary to your requirements, and who can support the opinion of value under challenge is essential.

Our real estate appraisers are fully qualified, certified, licensed, many designated as Members Of The Appraisal Institute (MAI) or Chartered Surveyors, and backed by our global staff of tax consultants, business valuation experts, and machinery and equipment appraisers.

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Estate Tax Planning & Filing

Effective estate planning requires a projection of future estate taxes so that some provision may be made to fund this liability. An essential part of this process entails the valuation of majority or minority capital stock interests to assist financial planning advisors in structuring asset preservation alternatives. At the date of death, the valuation must be updated in accordance with specific IRS regulations prior to filing the estate tax return.

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Tax Engineering™ Services

Early project choices made during the drawing and construction phases on materials and design can actually increase the amount of personal property ultimately classified for accelerated depreciation. In the United States, this shifts costs typically classified as straight line depreciation over 39 years to the more attractive 5 or 7 years life classes. In other countries, tax engineering increases Capital Cost Allowances (CCA) claims by shifting costs into shorter life classes.

Proactive planning with our tax engineers can result in substantially greater tax benefits and the reduction of future operating expenses. We have pioneered leading-edge technologies that combine multi-disciplinary engineering analysis and support systems. Our engineering based approach has proven far more effective at generating additional tax savings than the traditional accounting methods.

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Property Insurance Risk Management

Fluctuations in our economy present challenges in determining today's ever-changing replacement cost of insurable assets. Independent appraisals by our experts is the best way to establish insurance coverage with confidence that no unknown risk is being assumed by being underinsured, or that premiums are not being wasted by being over insured.

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