Selling or Buying a Business
Especially in this economy, it is critical that a proper sales price be determined when either selling or buying a business. No one wants to pay too much or receive too little for their investment. A business valuation can provide consensus during a business transaction by providing confidence and comfort to each party regarding the value of their investment.
Whether it is raising capital to finance operations, fund a new business expansion or purchase a new piece of equipment, it is much harder these days for businesses to expand with only cash. That means banks will likely be involved. A proper business valuation can help expedite this process by assisting banks in understanding the true value of any business’ greatest collateral.….the business itself.
Estate and Gift Planning
With business values and interest rates at all time lows, it is an excellent time to transfer wealth. Estate and Gift Taxes can be as high as 45% or higher in certain cases. A current business valuation in conjunction with estate and gift planning can significantly minimize, if not eliminate this exposure through application of appropriate valuation discounts.
Divorce and Litigation
The true value of a business is typically a much debated issue during divorce proceedings and other various types of litigation such as dissenting shareholder and wrongful termination suits. A valuation expert may be the basis for any awards or damages declared by a judge or jury. A proper business valuation is invaluable to both sides in a marital or legal dispute to ensure that an equitable resolution be decided. We also recommend to our clients that a business value be agreed upon during premarital or contractual negotiations to help prevent any future disagreements and avoid costly litigation.
Financial and Tax Reasons
Whether your Company is required to determine any impairment of intangible assets on their annual financial statements, your Company is considering filing for bankruptcy and liquidation value needs to be determined, your Company sponsors an Employee Stock Ownership Plan (ESOP) or your Company is considering converting from a C-Corporation to an S-Corporation for tax purposes, a business valuation may be a financially sound decision. It may even be required to establish or maintain compliance with numerous Federal, State and Other Regulatory standards.
Rich, Wightman & Company Certified Valuation Analysts
Our business valuations are performed in accordance with National Association of Certified Valuation Analysts (NACVA) Standards by a Certified Valuation Analyst (CVA). The NACVA is one of the oldest and most respected business valuation associations in America today. Furthermore, CVA’s undergo an intensive training and certification process, they are required to complete continuous professional education in the field, and every CVA must also be a CPA.
We utilize a very streamlined approach for each valuation. We work directly with you and your staff to collect all of the necessary historical information to understand your business. We work with your professionals including attorneys, appraisers, bankers and accountants to facilitate achieving your valuation needs.
We understand that each client has different goals and as such, we customize our valuation reports to meet those goals. We offer various business valuation tools including simple Calculation Reports, Modified or Summary Reports, and full-blown Detailed Reports. We can work with you to develop a valuation based upon your specific personal goals and budget preferences.