A business is usually the most important asset that a business owner has. When you need to know the value of your business assets utilizing the services of a valuation expert is needed.
Here are just some of the situations where a valuation are needed:
• Estate planning
• IRS Liability due to a taxable event such as estates (death of equity holder), gifting and so on
• Retirement funding estimates
• Buy-sell agreements and insurance
• Marital, Partnership & Corporate Dissolutions
• Annual valuation of stock options
• Exit planning strategy
• Value maximizing strategy – increase what a business is worth (used with other consulting services)
• Owner buy-in/out
• Litigation/legal disputes
• Intellectual Property
• Bank loan (SBA & conventional) due diligence and other credit applications
• Fairness or Solvency Opinions
• Negotiations and due diligence for business sale or purchase
It is very important that a qualified business valuator be used for this service. Many claim to be able to produce a value for your company but are not qualified. Or are simply not competent. For example, the IRS and courts may disallow any valuation conclusions should the valuator not have the proper credentials and experience, as they define it under IRS regulations. I will discuss valuation credentials in a later post.
