Business Valuations
Your business likely represents one of your most significant and valuable assets. A business valuation may be useful in a variety of situations. Perhaps the value of a corporation’s stock needs to be determined when a stockholder exits the business or a new stockholder comes on board. Maybe you receive an offer to sell the business but want to know if the prospective sales price is fair. Finally, a business interest transferred to another family member or a charitable organization may need to be valued for income tax purposes.
A business valuation may need to be prepared if you are confronted with any of the following:
- Mergers and acquisitions
- Estate and gift taxes
- Marital dissolution
- Buy-sell agreements
- Stockholder disputes
A valuation of your business could greatly impact the structure and timing of certain transactions that may affect your professional and/or personal life. Therefore, collecting and analyzing company data is an important component of performing a business valuation. The information gathered needs to be examined as a whole with a view toward the future of the business. Certain circumstances require that the value of the business be calculated as of a specific date in the past (i.e., the date of the death of a majority stockholder). Since a business valuation utilizes constantly changing data, determining the fair market value of a business can become more of an art than a science.
> At Metzger, Mancini & Lackner our focus is on serving the closely-held business. We believe there is more to valuing a closely-held business that just negotiating the acquisition or sale of an asset. The hopes, dreams, and personalities of the participants within the business must also be considered. These factors happen to be more apparent in a closely-held company than one which is publicly traded.
Should the need for a business valuation arise, please contact our office.
