Business Valuations
Clients come to Borland Benefield’s Certified Valuation Analysts (CVAs) for many reasons, such as litigation support, ownership succession, estate and gift tax planning, or buy-sell agreements, but all receive the same timely and fact-based opinions from experts who know the right records to request, questions to ask, and documents and trends to analyze.
With Borland Benefield, you receive conclusion of value that can be presented, explained and supported under even the most rigorous scrutiny — in court, with tax authorities, or in acquisitions and other corporate negotiations.
Our management of the valuation process follows a set of procedures designed to ensure a thorough, well-documented analysis to support the opinion of the appraiser:
BACKGROUND - Introductory discussion with the client to understand the client’s business and the situation that might lead to the need for a valuation.
ASSESSMENT - Further discussion with the client to present the services that would satisfy the client’s needs, identify what is to be valued, and determine the purpose of the valuation, valuation date, standard of value and appropriate fees.
CONTRACT - Preparation of a proposal or engagement letter which will set forth the services, schedule, fees, assumptions and limiting conditions, and those deliverables the client can expect to receive at the conclusion of the engagement. Once the terms are agreed upon, the client signs the letter, which serves as the engagement letter.
RESEARCH - Develop an understanding of the client’s industry, environment, business, and the assets (i.e., stock, etc.) to be valued. This will usually involve a visit to the client’s facilities, the submission of a client information request list in anticipation of the visit, and independent research on the client’s industry and business environment. Extensive relevant and available information must be collected, considered and analyzed as part of this process.
ANALYSIS - Although there is no single “correct” method for determining fair market value, there are three generally accepted approaches to valuing a business. The income approach uses one or more methods that consider the anticipated benefits to be realized and the conversion of these benefits into a value. The market approach uses one or more methods that compare the subject company to similar “guideline” companies, businesses or business interests that have been sold. The asset based approach is premised upon the value of the subject firm’s underlying assets. Utilization and assessment of any one or combination of these approaches, coupled with a determination of discounts and premiums and any other relevant adjustments, form the framework for our value conclusion.
REPORT - Depending on the report format requested, the report either describes, summarizes or states the assets valued, the methods and information used in the analysis, and the conclusion of value.
SUPPORT - Workpapers are maintained to provide detailed support to the valuation analysis and substantiate our position in litigation, tax, regulatory or other matters, should they arise.
| TRANSACTIONS SOLUTIONS
Acquisitions
Divestitures
Going Public or Private
Joint Venture Formation
Leveraged Buyouts
Management Buyouts
Mergers
Minority
Buyouts/Redemptions
Sale of Business or
Partial Interest
Spin-offs
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STRATEGIC SOLUTIONS
Business Planning
Buy-Sell Agreements
Employee Stock Ownership
Plans (ESOPs)
Purchase Offer Analysis
Re-capitalization
Strategic Planning
Succession Planning
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TAX SOLUTIONS
Charitable Contributions
Estate Planning
Family Limited Partnerships (FLPs)
Gift Tax
Inheritance Tax
Minimization of Tax
Net Operating Loss Carry-forwards
Passive Foreign Investment Company
Probate
Purchase Price Allocation
S Corporation Conversion
Transfer Pricing
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BANKRUPTCY SOLUTIONS
Collateral Valuation
Fresh Start Accounting
Involuntary Liquidation
Reorganizations
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LITIGATION SOLUTIONS
Arbitration
Breach of Contract
Business Interruption
Compensatory Damage
Cases
Condemnation Proceedings
Damage Determination
Diminished Capacity
Dissenting and Minority
Stockholders
Expert Testimony
Lost Profits
Marital Dissolution
Partnership Dissolution
Shareholder Disputes
Statutory (Squeeze-out)
Mergers
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OTHER SOLUTIONS
Compensation
Financial Reporting
In-process R&D
Insurable Value
Loan Financing
Not-for-profit Status
Personal Financial Planning
Trend Analysis
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For more information, please contact John Wilson (jmw@borllandcpa.com) at 205-802-7212.