Understanding Business Valuations

business valuation meetingThe term “business valuation” or “business appraisal” refers to the objective and impartial process of discovering the true and supportable value of a business, enterprise ownership affair, an intangible asset, or even a security, as at a specific date.

Make Sure to Choose a Valuation Firm with Lots of Experience

Every business valuation performed by A. Neumann & Associates LLC, is executed by a professionally certified, accredited appraisal firm who has significant experience in the field of business appraisals and transfers. In these valuations, a thorough compliance with the standards set by the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP) is ensured, along with the Business Appraisal Standards of the Institute of Business Appraisers. By complying with these widely accepted set standards, our clients can be safely sure that we are using established and peer-reviewed methods of valuation to arrive at defendable valuations.

Why Should A Business Owner Have Their Business Appraised?

Every business, whether successful or otherwise, will one day need to be reliably and impartially appraised for a number of reasons.

  • Sale of the Business
  • Partnership Agreements
  • Financing Requests
  • Partnership Buyouts & Partnership Disputes
  • Divorce Cases Involving Founders
  • Gift Taxes
  • Lawsuits
  • ESOPs
  • Estate Planning
  • Mergers
  • Insurance Claims
  • Valuation Reports
  • Changing from a “C” Corp. to a “S” Corp.
  • Allocation of Purchase Price

In short, business valuations are performed for a variety of reasons, and you can be pretty sure you fall into one of the aforementioned reasons why to have one performed. Please don’t get overwhelmed, reach out to us at A. Neumann & Associates, LLC and let us walk you through the process.