PROFESSIONAL VALUATION SERVICES
Business Valuation Services
Determining True Value for Critical Business Decisions
Whether you’re planning a merger, settling an estate, or making strategic financial decisions, accurate business valuation is essential. Our comprehensive valuation services provide the credible, defensible assessments you need for confident decision-making and regulatory compliance.
- NACVA Certified
- ASC 820 Compliant
- IRS Standards
OUR SERVICES
Common Valuation Needs
We provide comprehensive valuation services for a wide range of business scenarios and regulatory requirements.
Mergers & Acquisitions
Determine fair market value for buying, selling, or merging businesses with confidence and accuracy.
Estate & Gift Tax Planning
IRS-compliant valuations for estate transfers, gift tax returns, and succession planning strategies.
Buy-Sell Agreements
Establish fair pricing mechanisms for ownership transitions and shareholder buyouts in partnership agreements.
Divorce Proceedings
Objective business valuations for equitable distribution of marital assets and settlement negotiations.
Quality of Earnings
Application of due-diligence procedures to earnings and operating expenses in an acquisition while evaluating the need for normalizing adjustments to cash flow streams.
OUR APPROACH
Our Valuation Methodology
We employ a comprehensive, multi-faceted approach to business valuation, utilizing industry
standard methodologies to ensure accuracy and defensibility
Income Approach
Determines value based on the present value of expected future economic benefits, typically using discounted cash flow (DCF) analysis.
Market Approach
Establishes value by comparing the subject company to similar businesses that have been sold or publicly traded companies in the same industry.
Asset Approach
Values the business based on the fair market value of its underlying assets, both tangible and intangible, less liabilities.
Key Components:
- Historical financial analysis and normalization
- Future cash flow projections and growth assumptions
- Discount rate determination using WACC or CAPM
- Terminal value calculation and sensitivity analysis
Key Components:
- Guideline public company analysis and multiples
- Comparable transaction research and databases
- Industry-specific valuation multiples (EBITDA, Revenue)
- Adjustments for size, liquidity, and risk differences
Key Components:
- Tangible asset appraisal (equipment, real estate, inventory)
- Intangible asset identification and valuation
- Liability assessment and contingent obligations
- Adjusted net asset value calculation and reconciliation
Comprehensive Analysis
We typically employ multiple approaches to triangulate value, providing a well-supported conclusion that considers all relevant factors affecting your business worth. Our detailed reports include extensive documentation, market research, and clear explanations of all assumptions and methodologies.
FREQUENTLY ASKED QUESTIONS
Common Questions About Business Valuation
Get answers to the most common questions we receive about our valuation services.
How much does a business valuation cost?
Valuation fees vary based on the complexity of your business, the purpose of the valuation, and the level of detail required. Simple valuations for small businesses typically start around $5,000-$10,000, while complex engagements for larger companies or specialized purposes can range from $15,000-$25,000 or more.
Factors affecting cost include:
- Company size and revenue
- Industry complexity and data availability
- Number of business entities or locations
- Report detail level (calculation, estimate, or full appraisal)
- Timeline and urgency
- We provide detailed fee estimates after an initial consultation to understand your specific needs.
What documents will I need to provide?
Generally, three years of financial statements, tax returns, operational data, and relevant legal documents. We provide a detailed checklist upon engagement.
Can you value minority interests or partial ownership?
Yes, we regularly value minority ownership interests and partial stakes in businesses. These valuations require special consideration of discounts and premiums that may apply based on the rights and restrictions associated with the ownership interest.
- Key Considerations for Minority Interests:
- Discount for Lack of Control (DLOC): Minority shareholders typically cannot direct business operations, force distributions, or make major decisions, which reduces the value of their interest compared to a pro-rata share of the total business.
- Discount for Lack of Marketability (DLOM): Closely held business interests are difficult to sell quickly and may have transfer restrictions, requiring an additional discount for illiquidity
- Control Premium: Conversely, controlling interests may command a premium due to the ability to direct operations and make strategic decisions.
- The appropriate discounts or premiums depend on:
- Percentage ownership being valued
- Rights granted by operating agreements or bylaws
- Distribution history and dividend policy
- Restrictions on transfer or sale
- Standard of value required (fair market value vs. fair value)
What accounting information will be needed to complete a business valuation?
A business valuation relies on accurate financial and accounting information to determine the true economic value of a company. Whether the valuation is being performed for a business sale, shareholder dispute, divorce proceeding, estate planning, or tax compliance, a thorough review of the company’s financial records is essential.
Most valuation engagements begin with an analysis of the company’s historical financial statements, typically covering the last three to five years. These include income statements, balance sheets, and statements of cash flows. These records allow the valuation professional to evaluate historical trends in revenue, profitability, and operating performance.
In addition to summarized financial statements, analysts often review detailed accounting records, such as general ledger activity, trial balances, depreciation schedules and tax returns. This information helps identify non-recurring or discretionary expenses and allows the analyst to make adjustments that reflect the company’s true earning capacity.
Valuation professionals also examine revenue sources and customer relationships. Understanding how a company generates revenue, including customer concentration and recurring income streams, provides insight into the stability and sustainability of future earnings
Other key accounting information commonly reviewed includes owner or officer compensation, related-party transactions, fixed asset schedules, inventory records, and debt agreements. These records help determine the company’s capital structure, operating costs, and investment in business assets.
Finally, management forecasts and budgets are often reviewed to evaluate expected future performance. These projections are particularly important when applying income-based valuation methods that estimate the present value of future cash flows.
By analyzing this accounting information, valuation professionals can normalize earnings, assess risk, and develop a well-supported estimate of the company’s fair value.