
Recongizing
the Need for a
Business Valuator
Successfully
operating a business enterprise and making sound financial decisions
in today's fast-paced complex
world presents significant challenges. These challenges create a
need for a specialized
professional—the business valuator! The specific role of the
business valuator is to
determine the value of tangible and intangible assets held by
businesses or individuals.
Valuation professionals
provide a broad array of services to meet the unique needs of
businesses and independent clients. A business valuator may be
necessary for financial legal, business, family or personal
reasons. Qualified business valuators must have expertise in
accounting, tax, finance,
economics, litigation support, valuation theory and application and
more.
Scope of
Business
Valuation
Services
Understanding
the full scope of business valuation services is important in
identifying specific areas of
interest and need. Business valuation clients come from all
professions and industries.
Included are attorneys, judges, financial planners and institutions,
insurance companies, Certified
Public Accountants, business
consultants, business owners, real estate appraisers and business
brokers. Reasons to hire a professional business valuator may
include:
■
Adequacy of Life Insurance
■
Allocation of Acquisition Price
■
Bankruptcy and Foreclosures
■
Buy/Sell Agreements
■
Charitable Contributions
■
Employee Stock Ownership Plans (ESOPs)
■
Estate
and Gift Taxes
■
Fairness Opinions
■
Family
Limited Partnerships
■
Financing
■
Franchise Valuation or Evaluation
■
Gifting Programs
■
Incentive Stock Option Programs
■
Initial
Public Offerings (IPOs)
■
Intellectual Property
■
Lease
versus Buy
■
Liquidation or Reorganization
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Litigation Issues:
•
Disruption of a Business
•
Dissenting Shareholder Actions
• Divorce
•
Economic Loss Analysis
•
Eminent Domain
•
Partner Disputes
•
Pensions, 401(k), Benefits
•
Wrongful Death
■
Mediation and Arbitration
■
Mergers
and Acquisitions
■
Purchase/Sale of a Business
■
Split-ups and Spin-offs
■
Succession Planning
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Independent and
Objective Analysis
Independence
is a primary reason for engaging a business valuator. Problems
involving a lack of
independence,
fairness, competence, and disputes among interested parties ma be
avoided
through
third-party objectivity. The goal of the business valuator is to
provide you with an independent,
knowledgeable,
credible valuation without personal or emotional issues
influencing the
analysis and conclusions.
Professional
Quality
and Standards
A skilled
business valuator must meet rigid professional training and testing
requirements. Many business
valuators earn accreditation through professional organizations such
as the National Association of
Certified Valuation Analysts (NACVA®). NACVA's credentialed analysts
have completed in-depth
and advanced training necessary to competently provide a wide range
of business valuation
services, using recognized industry standards.
Understanding
How
Value Is Determined
Most clients
seek a business valuation in order to determine an appropriate value
of their business or personal
assets. Different approaches must be used to determine values 0f
businesses and property,
depending on the specific purpose for the valuation; Value is
usually expressed in terms of fair value, fair market value or
investment value. Business valuators are specifically trained to
identify and determine the most appropriate standard of value
for the valuation engagement
When Value Is the Issue, You Need a
Valuation Professional
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