Business Valuation Facts
Business valuation is a business appraisal of all the tangible and intangible assets of a company. This includes machinery and equipment, client list, beneficial contracts, franchise agreements, logos, trademarks, brand names, in-house developed software, copyrights, patents and applications for patents, subscriptions and service contracts, inventory and buildings. The intangible assets of a company are critical, as oftentimes this is more valued than tangible assets. Business valuation is needed when a company decides to buy or sell the business, to raise capital, for loans, auctions, partnerships/LLC, shareholder relationships or disputes, insurance, decedent estates, even for estate and succession planning, divorce, acquisitions and mergers and finally, liquidation.
Though business valuation has the same purpose as valuing real estate or stocks, having to actually determine the worth of a business and its potential to earn profits is no easy job. Most especially for companies that are not public traded companies, you need the help of a professional business valuations expert to apply the necessary methodologies that comply with the latest laws and standards and supply you with comprehensive and accurate business valuation reports. Some certified public accountants or CPAs can do this for your business, but unless they are accredited USPAP compliant appraisers, CPAs CANNOT LEGALLY APPRAISE unless they are an accredited appraiser as well as a CPA. An expert appraisal witness needs to be secured so that when litigation arises, defending your business valuation will not be a problem.
To start the process of business valuation, you need to find a qualified business valuation expert to appraise all of the factions concerning your business. There are several things you must consider when looking for the business valuation expert to carry out your valuation needs. The primary goal you want to look for in a business valuation expert is his knowledge and experience in business valuations. His experience must include testifying successfully in numerous cases, defending business valuations, divorce appraisals and other appraiser’s valuations. Your expert must also be willing to work as an appraisal consultant and be ready to participate in depositions, mock trials and give courtroom testimonies. He must be an accredited appraiser of machinery and equipment, buildings and other properties of the business. Consequently he must be willing to visit company properties to be able to accurately value these. Your business valuation professional must have a team behind him that is fully knowledgeable of any kind and facet of business valuations. Finally, because the Uniform Standards of Professional Appraisal Practice or USPAP had recent changes in their standards, your expert must be up to date with these changes so as to ensure your business valuation follows the latest rules and standards.
To accurately execute a business valuation, your chosen business valuation expert must gather information like accounting methods, share transactions, current and future marketing strategies, current financials, all financing statuses from past present and future, customer relations details, information about the industry, history of the company, management details, ownership details, major competitions, actual or potential litigations, contracts in force, forecasts of business growth at the time of the business valuation, insurance and supplier details.
Fussell Valuation Associates has a complete team of Senior Appraisers including 2-attorneys, 1-PHD and several other Senior appraisers nationwide. We have the experience in the courtroom and the field. Combined we have 70 years of appraising internationally and nationwide. Call for your business valuation 480 463 6579 or email us:
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