Business Valuations

To be meaningful, business valuations require an enormous amount of research, experience and judgment. We do our utmost to ensure that not only are valuation techniques methodologically correct; we also aim to reach a value or valuation range that corresponds to a market value of a transaction, should the company be sold shortly after the business valuation date.

In other words, in our valuations we routinely seek to arrive at a definition of fair market value based on the definition of the American Society of Appraisers: “the amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, each being aware of the relevant facts.”

Business valuations are useful in many situations: next generation transitions; management buy-outs (MBO’s); Employee Share Ownership Plans (ESOPS); estate planning (e.g. estate freezes); financing; validating the need for specific life insurance; and to provide a guideline on value expectations when negotiating to sell to a third party.