Company Technology company that develops and markets optical networking products Background The company had completed four rounds of financing raising $55.8 million and was planning an IPO of its stock in six months. However, certain significant product development hurdles had to be overcome before a successful IPO could occur. The company's founder planned to contribute early-round preferred stock to a family limited partnership (FLP) that would have a capital structure consisting of preferred and common equity interests. D&P's Role Estimated the fair market value of the founder's early-round preferred stock in the company, which he contributed to the FLP   Consulted with the founder's tax attorneys as to an appropriate capital structure for the FLP, given the founder's estate planning objectives and risk tolerances   Estimated the fair market yield applicable to the preferred equity interests in the FLP   Estimated the appropriate discounts for minority interest and lack of marketability applicable to the common equity interests in the FLP that the founder intends to transfer to trusts for the benefit of his children   Prepared a comprehensive written report describing the company, the optical networking market, the economic environment, the FLP and its structure and terms, and our valuation analyses Results The FLP was established and funded with the founder's stock in the company.   Gift tax returns were filed in connection with the founder's transfer of common equity interests in the company to his children. Essentials Duff & Phelps' experience in performing complex valuation assignments in the estate and gift tax arena ensured that the founder and his attorneys received a valuation analysis worthy of the complexity of their estate planning strategy.   Objectivity and professionalism of the analysis provided insurance against the risks involved in a challenge from the IRS.