|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNDER CONSTRUCTION
Business Valuation Articles
What's Your Company Worth?
Valuation Time:
All sorts of events could trigger a need for valuation; check with your accountant or lawyer whenever major changes occur within your business. You may need a valuation if you're-
- Applying for credit or a loan
- Seeking outside investors
- Disputing the conclusions of an IRS audit
- Conducting a major strategic-planning initiative
- Planning for an initial public offering of stock
- Doing estate or gift planning that involves company stock
- Creating a company stock-option plan or other benefits plan that involves company stock (such plans also require routine subsequent "mini-valuations")
- Breaking up a partnership
- Getting a divorce
- Entering bankruptcy
- Selling the company or a division
Did you know that...:
Though most valuations claim to assign a fair-market value, the results can vary widely. Here are some reasons:
- For estate- and gift-tax purposes, an ideal valuation is one that's a low as possible, to minimize tax liabilities. Expect the appraiser to look for any documentable factor that might lower your company's value.
- For sale purposes, well-prepared sellers equip themselves with a valuation that documents the highest possible value.
- For financing purposes, bankers will look for a valuation that focuses on liquidation value rather that a company's prospects as a going concern.
- For litigation purposes, valuations are a dog-eat-dog business. Set your valuation goals according to the side of the case you're on, but remember that the best investment you can make is a comprehensive, fully defensible document from the most blue-chip appraiser you can afford.
Contact Us:
Bruzgo & Kremer, LLC
P.O. Box 4892
Portland, ME 04112
Ph: (207) 874-7700
Fax: (207) 874-7701