Placing a monetary value on a company or business involves much more than simply determining what a potential buyer might pay for it. There are many factors that need to be taken into account, such as: type of company, market value, investment value, growth potential, tax laws and the individual circumstances of each business owner.
Our professionals have many years of experience in a wide range of business valuation issues and can help set an appropriate, realistic value for your company. Aside from the prospective sale of the company, there are many other reasons for getting a business valuation, including:
To determine estate taxes, a value must be placed on all of your assets, including the business.
A buy/sell agreement is an understanding between shareholders of a closely held business that specifies the terms and prices of a buyout when one or more shareholders want to sell.
If the merger is through the exchange of stock, both companies must be valued to establish a fair exchange.
Typically, a business must be valued during divorce proceedings. The business is usually given to one spouse while the other receives assets of equal value.
In addition to divorce, there are other types of litigation that require a business valuation, such as eminent domain proceedings and insurance claims for lost business.
An ESOP is a retirement plan in which company stock is donated instead of cash. The value of the stock must be determined annually to establish the employer’s deduction for the contribution.
When a company goes public, the corporation’s stock must be valued to set the initial offering price.
Because of our experience with business valuations, we know what elements of a business will add or detract from the value. We can work with you to structure your business to make it more attractive to prospective buyers and enhance its value.