A&C’s expert team has the experience to provide you with an independent, objective, and accurate estimate of a company’s value.
Our Certified Valuation Analysts (CVAs) have experience in a variety of industries to complete a fair assessment of value. We combine a deep understanding of market dynamics with rigorous analysis to help you make informed decisions. Our business valuation services include valuations for:
• Exit and Succession Planning
• Buy/Sell Agreements
• Fairness Opinions
• SBA Loans
• Strategic Transaction Planning
• Partner Disputes
• Valuation of Marital Estate in Divorce
• Employee Stock Ownership Plans
• 409A Plans
• Estate and Gift Tax
• Goodwill Impairment Testing
• Purchase Price Allocations
• Valuation of Intangible Assets
• C Corp Conversion to S Corp
A&C performs valuations of all levels of business interests, intellectual property, personal property, and complex securities. Our analysts consider the three approaches to determine the value of the underlying interest: the income approach, the market approach, and the asset approach.
The income approach uses the present value of the future free cash flow to represent the value of the interest being transacted. However, uncertainties associated with the projection must be reasonably quantified. Financial history is critical to the financial projection, but an experienced appraiser considers various drivers including but not limited to national and local economy, industry trends, advantages and disadvantages compared to peers. Normalization of earnings such as non-recurring or non-operating income and expenses requires careful assessments. Optionality and probabilities come into play if most measures are not mature enough to indicate the value of the business.
In the market approach, EBITDA multiples are probably the most often used measure to compare how much similar types of businesses are paid for. This measure is not one size fits all and may not be the best measure for all types of businesses. Database-generated comparable companies and transactions are quick and easy but without a discerning eye the comparability is often overlooked. Sufficient market studies by qualified experts can greatly enhance the reliability of an analysis.
The asset approach is more often utilized in the valuation for asset holding entities and developing technology as it does not always capture the intangible value of the business.
An expert must consider all three approaches and appropriate methods under each approach in the determination of valuation conclusion. A&C possesses the critical experience required in valuations for businesses and intangible assets.