Business Valuation

Business Valuation

	Selling a business without knowing what it’s worth is like flying blind. A properly priced business, justified by a valuation, sells more easily than an overpriced one. A valuation is an objective, independent appraisal from professionals who have the training and experience to establish the value of privately-held businesses. Due to our industry experience, we are often retained to appraise information technology companies and other businesses for a variety of reasons including:
	Assisting Buyers and Sellers of Privately Held Companies Positioning Businesses for Sale For Buy/Sell or Stock Purchase Agreements of Shareholders Employee Stock Ownership Plans Shareholder Disputes
	Private companies do not participate in the public stock market, in which the value of public companies is set each day by “the market”. Either a private valuation must be performed, or a transaction must occur, to determine the value of a private business. Upon closer examination, one sees that every private company actually has several different values, depending on the reason for the valuation. For example, an appraisal to determine the open market value yields one number – the market value. An appraisal to determine the value for legal or tax reasons yields the fair market value; appraisal to determine the secured lending value yields the collateral value of the business. There are a number of reasons for a valuation, and hence different “values” that may exist at the same time for one company. We work with our clients and with independent appraisers to determine the appropriate value(s).
	Most appraisers use three broad valuation approaches: income, asset, and market. The income approach uses methods that convert anticipated financial benefits into a present value. The asset approach uses methods based on the value of the underlying assets of the business. The market approach uses methods that compare the company to similar businesses that have been sold. The appraiser may select which approaches to incorporate into the final value conclusion, in order to provide the best fit for the company and the circumstances.
	We offer three types of valuations to fit your needs and your budget. They range in size, complexity, and amount of documentation:
	Complete Appraisal – Self Contained Report Complete Appraisal – Summary Report Calculation of Value

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