A business valuation is a critical component of a business owner¹s strategic and personal planning process. At Applied Economics, our dedicated team of credentialed professionals, including Accredited Senior Appraisers, utilize a broad range of training, knowledge, and experience to understand and address each client¹s unique needs on a timely basis. We assist our clients with various planning and compliance engagements and provide clients with relevant information useful in helping business owners realize and maintain the rewards of a lifetime of hard work.
Valuation purposes include:
Estate, Gift and Income Tax Planning and Compliance
- Estate, gift and income tax issues often involve entities such as closely-held corporations and family limited partnerships which require a valuation analysis that includes the determination of fair market value and application of reasonable discounts or premiums to ensure proper reporting of value.
Intellectual Property and Intangible Asset Valuation
- Businesses often create or own intellectual property or intangible assets that require an independent determination of value to ensure proper reporting in accordance with generally accepted accounting principles.
Mergers and Acquisitions
- Owners of closely held businesses who are considering a possible merger or acquisition can benefit from an independent valuation of their business or the target business to ensure that the agreed upon price is in line with an independent determination of the fair market value.
ESOPs, Stock Options, Restricted Securities, IRC 409A
- Each of these methods of compensating employees requires consideration of the unique tax implications to the employer and employee when determining their value in order to realize the maximum benefit to both parties and satisfy the requisite tax reporting and compliance requirements.
Succession Planning and Buy-Sell Agreements
- Closely-held business owners benefit from knowing the value of their business in order to plan adequately for the transition to the next generation of ownership while maintaining the business’ value.
Fairness Opinions
- Transactions can require an independent assessment of the financial fairness in order for business owners and directors to ensure transparency and sufficient consideration of fiduciary duties.
Solvency Opinions
- Business owners and directors can benefit from solvency opinions after execution of a transaction to provide independent verification that the financial solvency of the business was not impaired by the transaction and give an additional level of support should the transaction be challenged.
Litigation Support
- Valuations and qualified, expert witness testimony is an integral part of successful resolution of litigation matters that can include shareholder disputes, divorces, business dissolutions, breach of fiduciary duty, business interruption, loss of income, and estate and gift tax valuations.
Examples of engagements by industry:
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