Are you faced with any of these situations?
- Selling a business
- Developing an estate plan to protect your wealth
- Adding a partner
- Planning a merger or acquisition
- Raising capital
- Providing litigation support services
- Buying-out a partner
- Determining the value of assets and liabilities for a divorce settlement
- Planning an exit strategy
- Business & strategic planning
- Negotiating an insurance settlement
- Setting up an Employee Stock Ownership Plan (ESOP)
Understanding the realistic and achievable market value of your business is of major importance if you are motivated by any of these reasons. An independent Formal Valuation is the first step in preparing a business as it provides the foundation for the asking price, terms and conditions as well as helping to identify possible buyers.
American Capital offers a FREE Broker's Opinion of Value for your business. This Opinion of Value will be based on the financial information that you provide and comparable sales in your industry.
For those requiring a more formal and comprehensive approach to business valuation, American Capital uses the services of one of the most reputable and largest, independent third-party valuation companies in America to create these reports for our clients. They perform thousands of business valuations each year and have access to the most comprehensive databases of closed transactions in the nation. They know what selling price other businesses, like yours, are really generating. Their reports are reader friendly and can be shown to prospective buyers. They justify that the price recommended is the most obtainable for the business owner and the report proves the asking price is realistic to a prospective buyer. This professional service will increase your confidence and the credibility of your business. In addition to receiving a report on the fair market value of your business, your earnings are recast to account for analytical and accounting adjustments that are crucial for estimating the value of your business.
Several types of formal third-party valuations are available through American Capital:
Letter of Opinion
Depending on the purpose, this report can range from 6-20 pages. The final report contains a cover letter outlining the purpose of the opinion and the valuation conclusion followed by supporting financial exhibits.
Value Analysis
A limited scope report designed to value "Main Street" businesses - those with sales of approximately $1,000,000 or less. Although it is based on the financials of the business in combination with market conditions, it considers primarily the current and historical performance of the business rather than balance sheets. It is intended for owners and buyers looking for a general range of value.
Formal Valuation
Designed for larger businesses - those with sales of approximately $1,000,000-$5,000,000 - this limited scope, comprehensive report provides a thorough analysis of the Income Statement and Balance Sheet, Common Size Analysis, Comparable Transactions, and Industry and Economic Review.
M&A Valuation
A Uniform Standards of Professional Appraisal Practice (USPAP) formal narrative intended for stock valuations and valuation of large companies, strategic mergers and acquisitions. It is a complete financial and operational overview.
IRS Revenue Ruling 59-60
A USPAP formal narrative intended for litigation. It focuses on US Court reviews, cited Court precedents, and in-depth analysis and research. This is intended for estate tax, gift tax, ESOPs, divorce, and any situation requiring litigation.
We would be happy to help YOU with your business valuation needs. |
