Business people have a number of reasons to get a business valuation. So it’s small wonder that business appraisers have come up with a plethora of services to address their clients’ requirements.
Not all business valuation experts offer all the services. For example, many firms specialize in certain areas, such as litigation support or estate planning help. So you may need to ask around to find the expert in your neck of the woods that fits the bill for your particular assignment.
The good new is the business valuation profession has figured out how to cover just about every angle when it comes to valuing a business. Here are the typical areas you can find help on:
Preliminary opinions of value
If you just wondering what your business is worth or need an informal glance at business value for management planning purposes, business appraisers can help by offering a summary opinion of value. No need to expend time, money, and effort on a full blown business appraisal.
Complete, standards compliant business appraisals
If you require a comprehensive business valuation, business appraisers are ready to provide you with all kinds of valuation work products, starting from well thought out opinion reports all the way to full scope, USPAP or AICPA SSVS No 1 (VS Section 100) standard compliant business valuations.
Arbitration in business valuation disputes
Corporate stakeholders may sometimes disagree as to what the business is worth. Business appraisers can help manage expectations in an otherwise contentious situations.
Help in business sale transactions
Business appraisers can act as an objective voice to help business buyers and sellers come up with a workable selling price for a company.
This includes both reasonable business valuations as well as deal structuring on terms that make sound financial sense to both the buyer and the seller.
Gift and estate taxes could cause a major upset, so it is a good idea to consider the services of a skilled business appraiser if ownership interests are at stake.
Help in drafting buy-sell agreements
Business partners are wise to prepare in advance for ownership transition down the road. Putting together a solid buy-sell agreement could make a big difference and avoid conflicts in the future. Skilled business appraisers who specialize in this area could prove very useful indeed.
Help with public offering
If the company is to go public, figuring out a per-share price is a key requirement. Consider getting a thorough and thoughtful business appraisal to set the offering stock price right.
Fairness and solvency opinions for a proposed M&A transaction
This is a must for public companies. But even for private firms, shareholders need to know if they are getting a fair deal. Setting the price per share based on a well thought out business appraisal is obviously helpful here.
Allocation of business purchase price across its assets
This, as the saying goes, is a taxing question. Don’t underestimate the importance of valuing business assets and allocating the purchase price among them in the most tax advantaged way possible.
Referrals to business brokers
Business appraisers work on referrals from all kinds of other professionals. If you are considering a business sale, your appraiser may provide a suitable reference to a broker you can work with.
Some business appraisers steer clear of litigation services, while others specialize in them. If you are faced with a legal challenge, it may prove essential to hire the business valuation specialist that knows the ropes.