malibu group logo and torch award
BGA Logo
flash placeholder

Keys to Quality Business Valuations

This presentation concerning the valuation process has been given on several occasions to leading accounting and law firms. A summary includes the following key points:

 

  • The reasons for needing a valuation include the following typical scenarios: business sales & acquisitions, gift & estate planning, implementing buy/sell agreements, resolving shareholder disputes, income tax issues, divorce cases
  • There is no standard method of valuation for every business situation
  • “Fair Market Value” – the definition of value used in most valuations – explained
  • An overview of the three primary approaches to business valuations: the market approach, the cost approach and the income approach
  • The best way to select a quality business appraiser is to look for credentials such as AM, ASA, CFA and MBA and to inquire about methodologies and experience