Business Valuation FAQ
1. Do I need a business valuation?
If you own a business (or a partial interest in one), at some point you may need an assessment of its value. The following are examples of situations where owners will likely need the services of a business valuation expert:
Business Transactions
- Selling a business
- Buying a business
- Facilitating an owner buy-in or buy-out
- Obtaining debt or equity financing
- Entering into a buy-sell or shareholders agreement
Tax Planning and Compliance
- Implementing an estate plan
- Establishing a Family Limited Partnership (FLP) or other investment entity
- Filing an estate tax return
- Electing S-corporation status
- Establishing tax basis
- Gifting stock, partnership or membership interests
- Forming and administering an Employee Stock Ownership Plan (ESOP)
- Complying with IRC 409A
Litigation and Business Disputes
- Dividing property in divorce
- Resolving a dispute among shareholders
- Exercising dissenter’s rights
- Assessing economic damages
- Filing for bankruptcy
Other Circumstances
- Identifying opportunities to increase business value
- Planning for owner and/or manager succession
- Complying with FAS 123R
- Allocation of Purchase Price & Goodwill Impairment testing
- Determining the adequacy of key man or other insurance coverage
- Eminent domain
- Critiquing a business valuation prepared by another party
2. What is the business valuation process? | Back to Business Valuation FAQ