Business Valuation

What’s this business interest worth?

Determining the value of someone’s interest in a closely held business can be important for both tax and business reasons. But determining the value is not always easy since there is rarely an established market for closely held business interests. That’s why an objective, professionally prepared business valuation is essential. Christensen Nichols PLLC CPA’s & Consultants provides business valuation services to clients ranging from small closely held companies to large regional service providers. We have extensive experience providing valuation and consulting services to a diverse client base. In addition, we bring a wealth of accounting and tax experience that provides us with the background to analyze businesses and provide insight into the economic, financial and tax variables that impact valuation. We work closely with our clients to understand their businesses and meet their objectives. Our team has valuation experience in the following industries:
  • Retail sales
  • Construction
  • Professional service firms
  • Gas station & convenience stores
  • Real estate holding companies
  • Family limited partnerships
  • Medical practices
Christensen Nichols PLLC CPA’s & Consultants performs independent valuations for many reasons, including: Acquisition or sale – In selling situations, a valuation may help set a fair and realistic price expectation. If someone is planning to buy a business, a valuation may protect him or her from paying more than the business is worth. Buy/sell agreements – Ensure the agreement reflects the current value. Income tax purposes – Tax related valuations are prepared for a variety of reasons, including compensation in the form of stock or options, charitable contributions, S-corporation elections and purchase price allocations. Life insurance Litigation support – Attorney’s rely on our professional opinions to help substantiate claims and defend positions in situations such as business and marital dissolutions, lost profit cases, insurance claims, etc. Partner disputes & split ups Split-ups/spin-offs of a division or subsidiary Divorce – Determine the value of closely held businesses for asset settlements. Financing – Lenders rely on our opinion of value to provide financing options. Shareholder dispute Lost wages Estate & Gifting – Valuations of closely held business interests are beneficial for estate planning, estate settlement and IRS reporting of estate or gift transactions. A properly prepared valuation can help avoid an IRS challenge and disputes among heirs. Charitable contributions Damages for disruption of a business Succession/exit planning – Valuations help develop goals to increase future value and transfer ownership. ESOP’s Management Tool – A business valuation provides management with insightful information that helps identify company strengths and weaknesses that affect value, allowing management to more effectively focus its energies in places that really increase the value of the business. Periodic business valuations can serve as a management tool that helps owners evaluate progress towards goals and management effectiveness. Expert Testimony – In addition to preparing written valuation reports, our valuation professionals offer the experience and credentials to provide trial preparation assistance, expert testimony and review of other expert reports. We can provide the level of service you require, ranging from informal calculations to a comprehensive appraisal report. We will help you determine which of the following valuation services you need: Appraisal report – This comprehensive, narrative report expresses an independent opinion of value. The report provides a logical progression which clearly communicates pertinent information, valuation methods and conclusions. The result is a report that can be defended, if necessary. Summary Letter report – If the report is for client use only, we can issue a summary letter report that states material factors leading to the report’s conclusion. If a third party challenges the value conclusion, we can use additional file information to produce an appraisal report. Calculations – For calculation engagements we perform limited procedures agreed upon in advance. This type of engagement is appropriate when a client wants an estimate of business value, but doesn’t need a formal opinion. Select a qualified business valuation professional Christensen Nichols PLLC CPA’s & Consultants business valuation consultants use a comprehensive approach to valuing business interests. We perform an in-depth analysis, using relevant market data, and current and relevant valuation techniques to ensure an accurate and defensible business valuation report. In addition, we monitor statutory authority, administrative rulings, and judicial precedent to ensure the valuation complies with legal and professional standards.