Business valuation services are needed for a variety of purposes, including estate and gift taxes, marital dissolutions, mergers and acquisitions, shareholder and partner disputes and appraisal actions, bankruptcy, damages and lost profits actions, and ESOPs.We are also accredited to perform multi-disciplinary valuation reviews required for banks and other lending institutions to comply with international and domestic credit risk regulations.
The ESOP must have a qualified appraisal of the shares at least once a year.
Many companies with two or more owners enter into buy-sell agreements.
The ESOP may acquire the shares either from an existing stockholder or by the company issuing new shares to the ESOP.
If the company issues new shares to the ESOP, it can take a deduction from its taxable income for the fair market value of the shares issued.
If a donor has three heirs to whom he wishes to pass the company, he could even give them 33 1/3% interests all at the same time, and each would be valued as a minority interest.
The owner may wish to sell minority interests to employees or outside investors.Hire the best possible business broker and follow his advice.A good business broker has the wisdom born of experience to work the market to your best advantage While it is generally good if the broker can find a buyer that has synergies with your company, don't expect the buyer to pay the full value of the synergies.This will be helpful in planning the timing of the sale as well as in identifying strengths and weaknesses and capitalizing on the strengths and curing the weaknesses.To maximize the sale price, it is desirable to forecast revenues and expenses out at least a year and have a record of how accurate the forecasts were. It is desirable to have the books and records in tip-top shape. It is important to minimize the personal expenses going through the company's books. Sell any assets that could be considered nonoperating or excessive (e.g., the company airplane, a hunting retreat, etc.).A synergistic buyer will probably pay a little more than a strictly financial buyer, but usually less than half of the value of the synergies.