Business Valuation

DIVORCE/MARITAL DISSOLUTION: We provide a value that is used in the equitable distribution of marital estates within divorce proceedings. This may be coupled with litigation support and expert testimony.

BUY-SELL AGREEMENTS: We establish a one-time valuation related to a business sale, for either seller or buyer.  Knowing the value of a business when you purchase or sell is crucial.  Many businesses sell with a price that is inflated or deflated simply because a business appraisal was not performed.

We also provide periodic and ongoing value to avoid potential future problems for stockholders and partnership buyouts. This valuation process can greatly simplify negotiations during the term of an operating agreement.

PARTNERSHIP & CORPORATE DISPUTES AND DISSOLUTIONS: Our appraisal determines the “Fair Value” of an enterprise so equitable parties can divide assets and intangibles in settlement of their particular dispute.

ESTATE and GIFT TAX: We develop and support appropriate discounting metrics to minimize or eliminate issues with the IRS.

BANK FINANCING & SBA LOANS: Favorable interest rates and loan terms are dependent upon the value of the ongoing enterprise, it’s assets and sometimes intellectual property (IP) assets. An independent business appraisal is required for certain SBA loans.

SUCCESSION PLANNING: Typically used when family owned businesses or real estate holding companies wish to keep the interests in the family. Distribution of shares to family members requires a “Fair Market Value” for each shareholder.

FAIRNESS OPINIONS: The fairness opinion is a definitive finding, stating whether the deal or transaction as presented seems fair and justified. Important items include basic due diligence, analysis of risk factors, deal structure or potential conflicts.

FINANCIAL REPORTING: In order to comply with Financial Accounting Standards Board (FASB), valuations are required to allocate an acquisition purchase price among tangible and intangible assets such as patents, copyrights, trademarks, trade secrets, etc.  Financial reports are available for other applications as well.

APPRAISAL REPORT – An unambiguous opinion expressed as a single amount as to the value of a business or ownership interest in a detailed fashion. This report format considers all relevant information as of the appraisal date and considers all conceptual approaches deemed to be relevant by the appraiser.

CALCULATION REPORT – An approximate indication or range of value for a business or ownership interest based on performing limited procedures agreed upon by the appraiser and client. This type of report is a “restricted use report”, meaning it is typically restricted for client use only.

The difference between these two reports is the content and volume of information provided within the report and corresponding amount of work, documentation, information and due diligence needed to produce the report.

Each valuation report has specific reporting rules and is prepared according to industry standards. The appropriate report type depends on the intended use. Courts generally require a full appraisal report.