Conclusions of Value
Business valuation is a set of procedures employed by Certified Valuation Analysts to estimate the economic value of an owner’s interest in a business. In addition to estimating the selling price of a business, Certified Valuation Analysts use their skills and expertise to aid in matters of estate and gift taxation, divorce litigation, allocating business purchase price among business assets, establishing the value of partners’ ownership interest for buy-sell agreements, and other business and legal purposes such as shareholders deadlock, divorce litigation, and estate contest. Our valuation services include establishing opinions of value and estimates of value.
Opinion of Value
An opinion of value is a detailed report establishing an exact value for a specific ownership interest. Conducted by a Certified Valuation Analyst, an opinion of value is established through a rigorous and independent process, conforming to valuation industry standards. An opinion of value can be used to
- -Establish pricing for buy-sell agreement
- -Establish pricing for sale of business
- -Efficiently use estate tax exemptions
- -Aid expert testimony
- -Aid FAS 141 and 142 accounting for mergers and acquisitions
- -Establish value for ESOPs in non-public companies
- -Establish value for options in non-public companies
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Estimate of Value
An estimate of value establishes a range of value for a specific ownership interest rather than an exact value. An estimate of value is rigorously and independently prepared by a Certified Valuation Analyst and conforms to valuation industry standards. The uses for an estimate of value include
- -Establishing range of negotiations
- -Aiding strattegic planning for divestiture or expansion
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Calculations of Value
A calculation of value is often used when valuing a new, high growth business which is not yet profitable. It is a report that concludes in a specific value or range of values for an ownership interest. When formulating a calculation of value the Certified Valuation Analyst works closely with the client to prepare a valuation with high growth rates and assumptions not yet supported by historical data. This is not an independent calculation, as it is constructed using an approach and assumptions established by the client.
The uses for a calculation of value include:
- -Establishing a pricing for buy-sell agreements
- -Establishing pricing for sale of a business
- -Strategic planning for divestiture or expansion
- -Establishing value for options in non-public companies
Contact us to learn more about our business valuation services.