Know what your business is worth
Business Valuation
Defensible opinions of value for planning, transactions, and disputes.
Overview
A business valuation is a written opinion of value for a company or ownership interest, based on a stated methodology and assumptions as of a specific valuation date. It is an opinion, not a prediction, and actual transaction prices may differ.
Owners commission valuations for a range of reasons: setting the price in a buy-sell agreement, sizing life insurance funding, planning an exit, resolving a partnership dispute, supporting gift or estate planning discussions, or simply understanding the number before decisions get made. The right approach depends on the purpose of the engagement and the standard of value it calls for.
Our valuations are built on recognized valuation methodologies, typically drawing from the income approach, the market approach, and the asset approach as appropriate to the business. We document the methodology, the assumptions, and the supporting data so the conclusion can be reviewed and, where needed, defended.
A valuation conclusion applies as of the valuation date. Business conditions, earnings, customer concentration, and market multiples change, and so does value. Expect to revisit the opinion when the business or its circumstances have materially shifted.
How We Help
Buy-sell agreement pricing
Establishing or refreshing the per-share value that drives buyout funding and payment terms.
Exit and succession planning
A baseline opinion of value before an owner commits to a sale timeline or internal transfer plan.
Gift and estate planning discussions
A supporting opinion of value for conversations with your estate attorney and CPA about transfers of ownership.
Partner or shareholder dispute
An independent opinion where owners disagree on what a departing interest is worth.
Divorce-related ownership division
A valuation of the marital interest in a closely held business to support counsel's negotiations.
Key person insurance sizing
Quantifying the enterprise impact of losing a key owner or employee to support coverage amount decisions.
Internal sale to the next generation or a key employee
A valuation that supports a defensible price for a family transfer or management buyout.
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Learn moreFrequently Asked Questions
What is a business valuation?
A business valuation is a written opinion of value for a company or an ownership interest, as of a specific valuation date, based on a stated methodology and assumptions. It is an opinion, not a guaranteed sale price. Actual transaction prices may differ from the opinion.
How is a business valued?
Valuations generally apply one or more of three approaches: the income approach (discounted cash flow or capitalization of earnings), the market approach (comparable company or transaction multiples), and the asset approach (adjusted net assets). The appropriate mix depends on the business, the industry, and the purpose of the engagement.
How much does a business valuation cost?
Cost depends on scope, purpose, company size, and complexity. A limited-scope opinion for buy-sell pricing is typically less involved than a full valuation report intended for litigation or estate matters. We quote a fixed fee after scoping the engagement.
How long does a valuation take?
Most engagements run four to eight weeks from kickoff to delivery, driven by how quickly financial and operating information is made available. Complex structures, multiple entities, or unusual industries can extend that timeline.
Who needs a business valuation?
Any owner making a decision that depends on what the business is worth generally benefits from one. Common triggers include setting or refreshing a buy-sell price, sizing insurance funding, planning an exit, resolving a dispute, or supporting planning conversations with an attorney or CPA.
Is your valuation legally binding?
No. A valuation is a professional opinion of value, not a binding determination. It supports decisions and negotiations; it does not dictate them. Counsel and the parties to any transaction determine the price actually used.
How often should I update my valuation?
Review value every one to three years, or sooner after a material change in earnings, ownership, customer concentration, or industry conditions. Buy-sell agreements with stale valuations are one of the more common problems owners discover at the worst time.
What is the difference between fair market value and fair value?
Fair market value is the price between a willing buyer and willing seller with neither under compulsion and both reasonably informed, and is the standard used in most tax and planning contexts. Fair value is a statutory standard used in specific legal contexts such as dissenting shareholder matters and is defined by the applicable jurisdiction. The right standard depends on why the valuation is being done.
Important Disclosures
- A business valuation delivered by this firm is an opinion of value based on the methodology selected, the information provided by the client, and the assumptions stated in the engagement — as of a specific valuation date.
- Valuation conclusions are not predictions of future performance and are not binding on any party. Actual prices realized in a transaction may differ materially from any valuation opinion.
- Where a valuation is used for regulatory, tax, litigation, or financial-reporting purposes, it should be reviewed by the client's legal and tax advisors for compliance with the applicable standard (e.g., IRS, USPAP, AICPA SSVS) before being relied upon.
Ready to talk about business valuation?
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