What is your business worth? Whether you are selling, buying, giving to a child or other successor, completing an estate tax return, or divorcing, you need to know. The same factors we consider in Full Circle to maximize the value of your business we consider here in determining its value.
I am a Certified Valuation Analyst and Certified in Business Valuation. I undergo significant ongoing training to maintain these certifications. I have valued businesses in a wide range of industries, sizes, and entity types.
There are three methods of calculating business value: asset value, the value of the income stream, and comparable sales. I always consider all three methods, and select the most appropriate for your situation. I consider the purpose for the valuation and watch for opportunities for you, which may be unrelated to the valuation itself.
Because I have valued many businesses (and pensions) for divorce situations, and, because I have been married to a lawyer for many years, my perspective in litigation situations includes an awareness of many of the logistical and strategic matters involved in the legal process. I can often help smooth the process or bring to light important information.
What is the cost of a business valuation?
Each business and situation is unique. We discuss the fee, and other logistical matters, at the start of the engagement.
How do you value a business?
There are three main methods of valuing a business, with sub-methods under each category: market comparison and valuing the income stream and assets.
How long does it take?
The time range varies, depending on many things. We discuss anticipated timing as we begin.
What information do you need?
I use an extensive data request list as a starting point, to determine your business’s needs, and it includes 3-5 years of tax returns and financial statements if applicable.
I’m getting divorced. Why would I need a valuation?
In NC, you need to know the value of your business in order to determine equitable distribution of the marital estate.
I’m getting divorced. Can I just use the valuation my ex/spouse is having prepared?
I recommend that you either jointly hire an appraiser, or hire your own appraiser.
I’m getting divorced. Can I just use the valuation we had done several years ago?
Ask your valuator - it will depend on the circumstances.
I’m giving partial interests in my business to my children over time. Why would I need a valuation?
It may be wise to start the statute of limitations, so that the government can’t make changes down the road.
My business is electing S status. Why would I need a valuation?
Goodwill can be a built-in gains item that you will need to know if you dispose of the corporation within ten years.
I have a family limited partnership. Why would I need a valuation?
The value of a family limited partnership usually differs from the value of the underlying assets, and a valuation supports gift and estate values.