The Valuation Process
Business Valuation Service Offerings
Business Valuations come in many forms. Fair Market Valuations adheres to a set of industry standard practices to ensure the valuation we prepare for you fully meets your needs.
The important question that must be asked is "How will the valuation be used?"
We adhere to NACVA's high standards. We deliver two types of professional business valuation reports, called either a "Conclusion Report" or a "Calculation Report". Conclusion Reports meet a higher standard and are ideal for lower to middle market businesses, partner buy/sell agreements, dissolution arrangements, estate gifting, etc. Conclusion Reports also meet most legal and court requirements In less mandated matters a "Calculation Report" is also a perfectly acceptable solution for a business valuation.
Valuation Purpose | Valuation Product |
Business Sale or Purchase | Value Conclusion Report (VCR) This report is ideally suited for the business seller or buyer. It is suitable for middle market businesses with revenues up to $50MM. And it is designed to provide a benchmark analysis of the business in question that exploits all of the key drivers of value. Our deep understanding of "normalization" processes helps our clients see a truer picture of the economic performance of the business and how that translates into valuation. We conform to key industry standards and analytics to ensure you are positioned optimally for your transaction. M&A requires an understanding of nuance arguments to either increase or decrease value in a negotiation. Ask us about this when you call. |
Buy / Sell Agreements
| Value Conclusion Reporting (VCR) Buy / Sell agreements are formed by using value conclusions as the basis for the underlying agreement. The resulting "Conclusion Report" is "tuned" to accept new inputs as the business evolves. This allows us to provide ongoing analysis with a high value proposition. Our report complies with key industry standards to ensure courts and taxing authority approval - if necessary. |
Partnership Dissolution Process | Value Conclusion Reporting (VCR) Partnerships dissolve for many reasons. Jurisdictional requirements may drive the need for our Value Conclusion Report. This document conforms to necessary standards, exploits all relevant financial matters in the business to help mitigate the potential for dispute resolution in a court of law. |
Marital Dissolution and Separation of Business Assets | Value Conclusion Report (VCR) or Calculation Report (CR) Depending on the requirement our VCR or CR can help you resolve matters related to the dissolution of business assets that are closely held by husband and wife. During this analysis we understand the criticality of providing sound and non-biased results. Our report complies with key industry standards to ensure courts and taxing authority approval - if necessary. |
Estate, Gift, and Income Taxes | Value Conclusion Report (VCR) When gifting business stock or assets for estate purposes a variety of jurisdictional requirements must be met. Our VCR conforms to all of the necessary standards to ensure positions taken are defensible and supportable. The report conforms to IRS Revenue Ruling 59-60 and other standards. |
Call us or drop us an information request to find out more. We have the solution to fit your need.