The complexity of today’s business market makes it likely that an appraisal value of your business may need to be determined. A valuation establishes the worth of your business by setting values for all tangible and intangible assets, including real and personal property, debt and goodwill.
The appraisal process requires a multidimensional examination of your business and its environment. Pertinent financial, tax, economic, and industry data are analyzed and interpreted to arrive at the worth of a business.
When is an Independent Valuation Needed?
There are many and diverse reasons for a business valuation. Common circumstances include:
Mergers and acquisitions
Your company may be considering acquiring or merging with another company. In some cases, both companies may need to be valued to establish a fair exchange or payment. We can assist in determining the value of the entities involved in the transaction.
Buy-sell agreements are very important tools in closely-held entities. They may allow owners to transfer their interests according to a pre-agreed price or a price based upon a pre-agreed valuation method. Buy-sell agreements provide for a smooth transfer of ownership with minimal business interruptions. We can assist in determining which valuation method or price is appropriate.
Employee Stock Ownership Plans (ESOP)
ESOPs are employer-funded employee incentive ownership arrangements. When appropriate, they can provide capital and tax advantages. ESOPs need to be valued annually to support the employer’s deduction. We can assist in these annual valuations.
Selling your business
You may desire to sell your business for retirement or other reasons. It is important that you receive top dollar for your business. Our valuation professionals can help you value your business for maximum sale price. We can also assist you in locating buyers and negotiating the sale of your interest.
Your business may need to borrow money for any number of reasons. When applying to a financial institution for a loan, it is important to know what your business is worth. We can assist you in valuing your business.
In some instances, the principals of a closely-held business may not have the funds to buy one another out in the event of death. In these cases, life insurance can be a very useful resource for providing the necessary funds. Determining the adequate amount of insurance to carry on the lives of the principals requires knowledge of the value of the business.
Estate and gift tax planning
It is absolutely necessary to know the value of one’s business when planning for estate and gift tax purposes. Proper planning should provide sufficient assets to maintain your family’s lifestyle and minimize taxes. We can assist in valuing your business for this reason while working closely with our tax experts to provide you with full service estate and gift tax planning.
We assist attorneys in valuing businesses for:
- Marital dissolution
- Business losses
- Embezzlement and fraud
- Contract disputes
- Minority interest buy-outs
When seeking an expert witness on the valuation of a business interest, you need individuals who are competent, articulate and whose valuation philosophy is clearly explained. We provide this expertise; further, we have no conflict of interest and we stand ready to defend our valuations without compromise on cross-examination.