PA Business Valuation in Estate Planning
By Sean Quinlan, Esq. · Updated January 15, 2025
Closely held business valuation drives every dollar in family-business estate planning — inheritance tax, gift tax, buy-sell pricing.
Methods
Income (capitalized earnings, DCF), market (comparable sales), asset (adjusted book value). Most appraisers blend all three.
Discounts
Lack of marketability and lack of control discounts can reduce value 25–40% for minority interests — defensible with proper documentation.
Qualified appraiser
PA inheritance tax and IRS gift tax both require a qualified appraisal for non-marketable interests. DIY valuations get rejected.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
Talk with a Pennsylvania estate planning attorney.
Most plans take two meetings. The first is a consultation — clear, honest, and free of pressure.