Business Valuation

Steps:

  • Meet.  Agree on business valuation purpose, scope,  and cost.

  • Gather client information (financial statements,  documentation, and interviews).

  • Analyze information.

  • Create report and review with client.

A financial calculator used for business valuations

Overview:

Business valuations are completed for individuals and closely-held businesses. A closely-held business is a corporation that (1) has more than 50% of the value of its outstanding stock owned by five or fewer individuals at any time during the last half of the tax year, and (2) is not a personal service corporation. I focus on completing business valuations for these areas:

  • General purposes

    • An owner may be considering selling his/her company and wants to know the company's estimated value.​

  • Litigation (divorce, arbitration, and mediation)

    • Completing business valuations for litigation correlates well with other litigation services needed, which I offer, including asset tracing and fraud evaluations

    • Advisory services include third-party review of others' business valuations.

  • IRS tax compliance (gift and estate taxes) allows one to understand the tax liabilities that would apply to their transfer so there's a coherent picture of the assets that would be received by the family after the deduction of taxes. These relevant IRS returns are (1) US Gift Tax Return (Form 709), and (2) US Estate Tax Return (Form 706).

  • ​Insurance policies and buy-sell agreements rely on up-to-date business valuations.

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