Business Valuation

While death and taxes may be the only two items inevitable in life, it is equally certain that the ownership of every business will eventually change hands. Because this transfer will ultimately take place, it is important for you to understand the basics of how value is determined for your business. Ownership transfers can be grouped into one of two categories: voluntary or involuntary.

Voluntary transfers may occur for the following reasons:

• Sale of the entire company under favorable circumstances
• Pre-sale of stock through a buy-sell agreement
• Gifting stock within the family
• Sale of stock to key employees
• Implementation of an Employee Stock Ownership Plan (ESOP)

Involuntary transfers can occur under unfavorable conditions:

• Death of a stockholder
• Divorce of a stockholder
• Sale of the business when the owner is forced into selling due to financial or business conditions
• Forced sale under the terms of a franchise agreement or government regulatory body

We offer professional advice on business valuation matters including formal valuation reports and expert witness testimony by a credentialed valuator.