Frequently Asked Questions About Business Valuation

Schedule of businesses valued

How quickly can the work be done?

How is the value of a business determined?

Rules of thumb (and when not to use them)

 

Association of Certified Fraud Examiners National Association  of Certified Valuation Analysts

 

 





 



Why Have A Business Valuation?

There are times when the owners of a closely held business need to know the value of the business. Sometimes, having the valuation is a legal requirement such as in estate and gift tax matters or in a divorce; sometimes, the owners are not required to have a valuation but want to have one so they can make a better business decision such as in deciding whether or not to sell the company. Some of the most common reasons for having a valuation are listed below.

Buying or selling a business
Charitable contributions
Dissenting shareholder actions
Divorce
Employee stock ownership plans
Estate taxes or planning
Financial planning
Financing (loans based on business value)
Gift taxes

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