Sep 22 Your Guide To Business Valuation Services
Business valuation is an important service for your business, and there are many reasons that you may need to have one done. This article will explore those reasons in-depth, as well as serve as a helpful guide to business valuation services. Below, you will find information on the reasons you might need a business valuation, as well as what to look for in a business valuation firm. The following will be applicable to accounting, tax, and advisory firms across the country, including Clifton NJ business valuation firms.
Business valuations are often conducted for matrimonial purposes, as two of the most significant assets in marital estates are closely held businesses and professional practices. Business valuations are regularly adopted by courts in matrimonial cases. When having a business valuation done for matrimonial purposes, it is important that you work with a company that has specialized training and experience with this type of valuation.
Estate and Gift Tax
Valuation services are also utilized for scenarios involving estate and gift taxes. What is needed in this situation is appraisal of ownership interest in closely-held companies, as well as resolution of valuation disputes with taxing authorities, and facilitation of ownership succession plans. Since this situation can be a very delicate one, hiring a capable, experienced firm is crucial.
Mergers And Acquisitions
Business valuation is an essential step in the merger and acquisition process. Business valuations are essential for both parties in a merger or acquisition—the buyers and the sellers. Business valuations are used to assess the true value of a company. A good business valuation firm will not only be able to provide this assessment, but will also be able to provide support for the offering price, perform due diligence on the business’ behalf, and advise on legal provisions during the contract preparation phase. It is definitely recommended that you find a top-notch accounting firm to work with you on your business valuation, before you begin the process of a merger.
Business valuations also help with shareholder issues, such as dissenting and/or oppressed shareholder’s actions, as well as valuation services for qualified and non-qualified stock options.
A business valuation firm is also able to provide economic damage analysis for your company. There are many claims and legal proceedings that require this sort of analysis, and it is recommended that you work with a reputed business valuation firm if this analysis is required. Some of the situations in which economic damage analysis might be necessary include cases of arson and fraud, business interruption, commercial fraud, construction claims, contract disputes, employment discrimination, intellectual property infringement, personal injury, product liability claims, worker’s compensation, and wrongful death. Business valuations help you (and the courts) determine the true financial losses that stem from the issues mentioned above. As these issues often involve sensitive legal matters, it is paramount that you work with an accounting, tax, and advisory firm that is able to see you through each phase of a trial, even providing expert testimony if needed.