What is my interest in this business worth?
The interest you hold in your privately-held company may be your most valuable asset, and the value of your business might be driven more by intangible assets than tangible assets. Determining the value of that business, business interest or intangible assets is critical for both tax and business reasons. But determining value is not always easy because there is rarely an established market for closely held business, business interests, or intangible assets. An independent, professionally prepared business valuation prepared by a qualified appraiser is essential.
When are valuation services needed?
Business acquisition, sale or merger
Valuation consulting to help the buyer or seller understand value, set price, and understand potential synergistic opportunities. In selling situations, a valuation may help set realistic price expectations. The process often reveals opportunities to enhance value and maximize price. A valuation may protect a buyer from paying more than the business is worth. Consultation with a qualified business valuation specialist may minimize these risks.
Proven credibility in arbitration, state courts, and federal courts. Attorneys rely on the opinions and expert testimony of our business valuation specialists to help substantiate or defend against claims of lost business value or lost profits. Our senior professionals have the added credibility of serving as international instructors for and elected and appointed leaders in nationally and internationally recognized business valuation professional organizations.
Estate and gift taxes
Credible valuation conclusions developed through a qualified appraisal are reported by a qualified appraiser in a manner to meet the safe haven and adequate disclosure requirements of the IRS. A properly prepared valuation can help avoid: 1) an IRS challenge that could overturn an estate plan, 2) exposing the estate to undervaluation penalties and 3) disputes among heirs.
Deep experience in valuations for ASC 805 (purchase price allocation), ASC 350 (impairment testing), and ASC 718/IRC 409A (equity compensation) purposes as appraiser and as valuation subject matter expert reviewer for the fifth largest international public accounting firm. We understand the valuation and accounting issues related to fair value.