Valuations Frequently Asked Questions
Do I need a Business Valuation?
Yes. If you want an accurate defendable value of intangible assets you need a Business Valuation. Tangible assets and intangible assets all have value. The methods and standards for arriving at the appropriate value for each are different and require the expertise of different disciplines and scope of work to be done.
What is a Business Valuation?
Business Valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. (Source: Wikipedia.org)
Is my Business Valuation Defendable?
Yes. Your Valuation is based on standard methods and practices specifically defined and used to best fit your needs.
Who Uses Business Valuations?
Business owners looking to sell.
Partners looking to buy out Partners
Attorneys (Probate, Divorce, IRS, Bankruptcy)
Bankers (loans, collections, re-sale)
CPA’s, and Courts.
Do only the tangible assets of your business have value? If so, how are those assets valued?
All tangible assets have value. These are best determined by a Business Valuation. Guessing or using current depreciated value of assets can understate the value of the assets and result in an inaccurate value of the assets. The methods used to best determine your tangible asset value can vary.
Can my accountant do my Business Valuation?
Most accountants do not focus on valuations. They may only use one or two methods to value your business and these may not be the best fit for your type of business. Accountants often do not conduct valuation services in their day-to-day accounting practice and they usually do not have the necessary training to produce an accurate analysis. Additionally, the intended readers of the valuation often believe that the company accountant is too involved in the operation of the business to provide an objective opinion.
What does a Business Valuation Cost?
Depending on the scope of your valuation and the depth of the final report the price can vary. Generally Business Valuations range from a few hundred dollars to a few thousand dollars. Most often the best fit for your business will range on the lower end. Our staff can work with you to determine the scope of work being performed and provide pricing and terms before you begin. Contact Us now for further information.