Business Valuation

We specialize in valuation of privately-held business entities.

We employ the highest standards of professional business valuation practices and procedures to produce USPAP compliant, certified appraisals for ownership transitions, shareholder dispute resolution, divorce settlement, ESOPs and tax matters.

We maintain the highest ethical standards of professional business appraisal including competence, impartiality, objectivity, non-advocacy and independence. Your confidentiality is assured.

When do yo need a Certified Business Appraiser?

If you are facing any of the following, you should call us to arrange for a prompt, professional business appraisal:

• Shareholder and Partnership Buyouts and Disputes

• Merger & Acquisitions / Business Sales

• Buy-Sell and Shareholder Agreements

• Divorce

• Commercial Litigation

• Estate & Gift Tax

• Minority Shareholder Disputes and Litigation

• Financing Applications

• Personal Finance Management

• Financial and Tax Reporting

• Expert Business Valuation Witness

• Employee Stock Ownership Plan (ESOP) Requirements

The Valuation Process

The Introductory Phase
We listen while you share with us what you wish to have valued, for what purpose, and your objectives.

We provide you with our qualifications for the assignment.

The Engagement Phase
We prepare an Engagement Agreement to describe the assignment, including the date of the opinion of value, what is being valued, time needed to complete the assignment and the fees.

The Client signs the Engagement Agreement and sends a retainer

The Valuation Phase
We gather the data necessary to complete the assignment. Generally speaking, this includes: (i) information provided by the Client; (ii) data on the industry; (iii) relevant economic information; and (iv) information from the market regarding the amount at which similar business interests have sold, rates of return available on investments of similar risk and investment characteristics, and support for discounts and premiums as applicable to the assignment.

We analyze the gathered data and select the valuation methods appropriate to the assignment.

An on-site visit is scheduled to visit your company to tour the facilities, meet with management to discuss the company's operations and outlook, and answer any remaining questions you have regarding the valuation process.

Values are indicated through the development of the selected valuation methods. Commonly this includes the development of applicable rates of return and expected growth rates.

The Report Phase
The results of an assignment can be reported verbally or in various types of written reports. The below comments assume the assignment called for the results to be reported in the formal appraisal report common to all tax-related valuations as well as valuations performed for many other uses.

• We prepare a valuation report designed to explain the appraisal process followed, the research performed, the development of the selected rates of return and growth, valuation methods employed, discounts applied and the reconciliation of values indicated by the various methods utilized.
• Our appraisal fees include reasonable discussion time following the appraisal to permit the Client to ask questions in the event the appraisal report is not fully understood.

Fee Policy: We will invest a reasonable period of time at no charge to gain an understanding of the matter that causes your need for a business valuation expert. This will allow us to suggest how you can make the most effective use of our expertise. Then we will prepare an agreement for the engagement, including our fee for the assignment.

Types of Reports

The common types of valuation reports are described below:
Formal Valuations & Reports: The objective of a formal valuation and report is to express an unambiguous opinion as to the value of the business, business ownership interest, or security -- a value opinion supported by all valuation methods the appraiser deems to be meaningful and relevant to the assignment. A formal valuation is required for most tax-related matters. It is recommended for many others.
Limited Valuations & Reports: The objective of a limited valuation and report is to express an estimate as to the value of a business, business ownership interest, or security which lacks the performance of additional procedures required in a formal valuation and report. A limited valuation may be expressed as a single dollar amount or as a range of values. The valuator conducts only limited procedures to collect and analyze the information which the valuator considers necessary to support the conclusion presented. A limited valuation and report can also be defined by the valuator's decision to depart from some or all of those valuation standards from which departure is ethically permitted.
Preliminary Valuations & Reports: The objective of a preliminary appraisal is to provide an approximate indication of value based on the performance of preliminary procedures. The opinion may be expressed as a value range or a single dollar amount.
Fairness Opinions: A fairness opinion is appropriate when a company has received an offer to be acquired by another firm. It is part of the directors' due diligence to determine whether or not the offer received is fair to the shareholders. A fairness opinion does not include an opinion of value; it is only an opinion as to whether or not the appraiser believes the offer the company has received is fair for its shareholders. An opinion that it is fair implies the company is not worth more; an opinion that it is not fair implies the company is worth more than the offer. When a shareholder/partnership agreement is prepared without expertise with respect to valuation, at the end of the path it is often unfair to one or more shareholders.