There are many reasons you may need to know the value of your business. Whatever the motive for desiring this information, trying to come up with a valid figure can be a major effort and challenge. Furthermore, as is often the case, your business may be worth more than you realize.

A realistic business valuation requires more than merely looking at last year's financial statement. A valuation requires a thorough analysis of several years of the business operation and an opinion about the future outlook of the industry, the economy and how the subject company will compete. Consequently, you need professionals that are well qualified and have significant experience in evaluating all types of businesses.

There are three major valuation methods:

• Asset - Focuses on the balance sheet of the company.

• Income - Relates to the income statement of the business.

• Market - Concerns comparable companies in the marketplace.

Proper application of discounts to valuing a business entity may save thousands of dollars in gift and estate taxes (present and future).

A privately owned company has no entry to financial markets as does a publicly traded entity. Because of this circumstance, a discount for "lack of marketability" may apply to the value of a business.

A minority interest holding of a company does not have access to the management and "control" of a company as majority ownership does. Thus a minority interest discount may apply to the value of a business.

We will interview management of the business and have a thorough understanding of your company and industry to initiate the process. Historic financial information and forecasted data will be reviewed and analyzed. A Certified Valuation Analyst (CVA) will be involved during the entire process. A formal valuation report will be prepared in accordance with the American Institute of Certified Public Accountants (AICPA) that is concise, informative and that can be defended if scrutinized by the Internal Revenue Service.

A business valuation report may be required for a variety of purposes:

• Estate and gift taxes.

• Buy/Sell and shareholder ownership transfers.

• Purchase or sale of a business.

• Mergers, acquisitions and leveraged buyouts.

• Corporate, partnership and marital dissolution.

• Employee Stock Ownership Plans (ESOPs).

• Profit sharing and 401(k) plans.

In some instances, a formal valuation is not necessary. Our firm is also able to provide a less stringent "Calculation of Value" report in accordance with AICPA and National Association of Certified Valuation Analyst (NACVA) standards.