Business Valuations

A business valuation establishes the worth of a company by setting values for all tangible and intangible assets. Value is a function of a company's expected performance at a given date, based on the most likely prospects for the economy, industry, company, and market for comparable investments.

Valuations may be required for:

There are three generally accepted standards for valuing a business: the income approach, which considers the anticipated benefits to be realized; the market approach, which compares the subject company to similar firms that have been sold; and the asset-based approach, which pegs value to underlying assets.

In working on valuations with clients, agreement is first reached on: 1) what is to be valued; 2) the purpose of the valuation; 3) valuation date; and 4) the standard to be employed. We then collect the pertinent financial, tax, operational, economic, and industry data to analyze in order to arrive at a fair market value. Typically, we require access to tax returns and other financial statements going back several fiscal years; a statistical snapshot of the business' competitive standing; and an in-depth discussion with management.

Business Valuation is a specialized discipline and should be conducted by someone who can bring the benefits of professional training, experience, and third-party objectivity to the process. Our conclusions must withstand close scrutiny in court, with tax authorities, or in corporate negotiations.

Mike Eberhart and Keith Arner lead the Business Valuation Team. Mike and Keith have direct experience in the areas of business valuations, mergers and acquisitions, litigation support, and due diligence techniques. They both hold the designation of Certified Valuation Analyst (CVA).

Mike and Keith are members of the National Association of Certified Valuation Analysts (NACVA).  Mike is also a member of the Institute of Business Appraisers,  and on the business committee of BKR International.