A business appraisal is a professional analysis of the worth of a business or business interest based on the consideration of all of the relevant facts. Each appraisal is as unique as the business being appraised. The appraisal process involves extensive research and analysis tailored to your business and the purpose of your appraisal.
The complexity of business today makes it important for a business owner to know the fair market value of his/her business at different stages in its life. Appraisals play a critical part in all strategic transactions. The following are some of the reasons a business owner may need to know the value of his/her business or business interest:
Adopting or maintaining an employee stock ownership plan;
Merging, acquiring, or divesting of an ownership interest;
Selling a business;
Granting minority stock ownership;
Planning/reporting for estate and gift taxes including family limited partnerships;
Creating or revising buy/sell agreements;
Settling a dissolution of marriage proceeding;
Contributing stock to a charitable organization;
Settling shareholder disputes including dissenting and oppressed shareholder actions; or
Assessing economic damages or other loss of value in litigation.
For many individuals, the preceding transactions may be the single largest transaction of their lives. Guessing at the value of a business and being wrong can be very expensive. Avoid the guesswork by using a professional appraiser.