A closely-held business is one of the most, if not the most, significant assets in an owner’s personal balance sheet. The demands of running a successful business and the process of value creation does not follow a single path, but rather many paths that vary by industry and a company’s position in its life cycle. These variables can create significant intangible value beyond the tangible assets used in the business and affect whether a company is positioned as one of the most valuable companies in its industry, among its peer competitors, or is less valuable than its rivals.
At various stages in a business owner’s life, obtaining a business valuation is essential. These reasons include:
- Management planning to understand business risks and how to maximize value
- Succession planning
- Buying a business
- Selling a business
- Merger or acquisition
- Purchase price allocation
- Financial reporting
- Estate tax reporting
- Gift tax reporting
- Other tax related transactions
R&A tailors the scope of our business valuations to our clients’ specific needs and the purpose of the engagement. Our scope may include the collection of relevant financial, operational, economic, and industry information, and company history to understand the unique attributes of the business and both how value has been created in the past and how it will continue to be created in the future. Our approach uses accepted methods combined with current research, which enable us to synthesize this information into a supportable conclusion of value. Call us for more information.