Business Valuation

What is your business worth?

The answer to this question may not always be easy to determine. If you need help figuring the value of your business, then you may need a business appraisal (i.e., business valuation). We have prepared and reviewed numerous business valuations across a variety of industries. Our experience and training can help you determine the right answer to this question. We have also defended our business valuations and critiqued the reports of others in court, should it become necessary.

Regardless of the purpose of your valuation, we would be happy to discuss your situation with you and offer possible solutions. Depending on your circumstances, we can provide a formal Valuation Engagement, a less formal Calculation Engagement, or some other valuation related services.

Valuation Engagement - The valuation engagement is a formal process whereby we apply a full-blown approach and document our results in a report which contains our conclusion of value. This engagement is typically the most costly and requires that we take the following steps:

1. Define the appraisal engagement in writing.
2. Gather the necessary data to perform the engagement.
3. Analyze the data gathered.
4. Estimate the value of the interest being appraised.
5. Write a report to communicate the value.

This approach is most often used when the appraisal is required to meet a burden of proof to an outside third party. When you opt for the valuation engagement, it is imperative that you work with a qualified, reputable valuator to give you the best chance of meeting your burden.

Calculation Engagement - A calculation engagement occurs when the client and valuator agree to specific valuation approaches, methods, and procedures. Because it is so flexible, the resulting calculation of value may be documented orally or in writing. This approach is also typically a lower cost to the client because less work is required. The Calculation Engagement is useful when you need an 'idea' of what your business is worth, but you are not under any burden of proof to an outside third party. It is also useful as a second opinion to determine whether another valuator has been reasonable in his or her approach.

Other Engagements - We are often hired to critique the work of another valuator in litigation support. Because we have a wealth of experience in this area, we may be able to discover fundamental flaws which overstate or understate value. We can then serve as an expert witness for our opinion and/or help your attorney prepare for cross-examination of the opposition expert.

Member of NACVA since 2001