Non-Compete Valuations
CAPIGENT GROUP is a leading provider of Executive Non-Compete Valuations for Internal Revenue Code Section 280G, ensuring compliance with tax regulations and minimizing exposure to Golden Parachute penalties. CAPIGENT also conducts valuations to support executive compensation planning, financial reporting, and M&A transactions. Each engagement includes a comprehensive analysis of business valuation and reasonable compensation studies, delivering defensible documentation for tax audits and regulatory review.
What is section 280G?
Section 280G addresses “golden parachute payments,” which are typically large, severance-like payments made to executives when they leave a company, often triggered by a change of control (like a merger or acquisition). The section is designed to limit the tax deductibility of these payments and to impose an excise tax on executives who receive them if they exceed a certain threshold.
Valuing non-compete agreements for Section 280G purposes is crucial in the context of golden parachute payments to mitigate or avoid adverse tax consequences.
Base Amount
3x Threshold
Excess Parachute Payment
20% Excise Tax + No Deduction
IRS scrutiny
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State Variability
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FTC Developments
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Judicial uncertainty
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