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Valuations

Business Valuations Services.  These services focus on assisting clients, attorneys, and others in estimating the fair market share of closely held companies.  Every business is unique, and as a result, the use of simple "rule-of-thumb" formulas often do not achieve the proper results since they may fail to consider current market values, intangibles and forecasts of future cash flows and profits.

When are Business Valuations Services Necessary?

  • When determining a personal net worth for financial and estate planning purposes

  • When structuring a buy-sell agreement

  • When funding an employee stock ownership plan (ESOP)

  • When considering the sale of all or a portion of a company's stock

  • When determining collateral for financing

  • When determining a value for executive compensation plans

  • For personal reasons, including gifts to family, charities, and during divorce procedures

What problems can Professional Business Valuations help avoid?

  • Tax penalties for under-valuation in estate tax settlements

  • Receiving too little for your company

  • Paying too much for a company

  • Shareholder disputes about buy-out prices

  • Lengthy debate regarding the value of assets in divorce settlements

How is a business valuation done?  We value a business base on a number of factors.  The techniques we use to value your business include:

  • Visiting the company

  • Interviewing top management

  • Reviewing industry and economic trends

  • Interpreting financial statements

  • Studying comparable publicly-held companies

  • Analyzing cash flow

  • Determining the ability to pay dividends

  • Identifying hard assets and recognizing intangible ones

The process requires that we look at the whole business, not simply the parts.  In looking at the whole, we consider the level of percent of ownership to be valued and a host of other technical influences.  While valuation is a painstaking process, it can be conducted efficiently, confidentially and with almost no disruption.

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