Business Valuations

What is a business valuation?

Simply stated, a business valuation is “the act or process of determining the value of a business enterprise and the ownership interest therein.” But that definition is deceptively simple. An independent, professional business valuation is a proven financial tool for entities that range in size from small privately-held businesses to large and well-established corporations.

Sobel Valuations, through its predecessor firm EAC Valuations, has had assignments around the world and across the street. We have completed more than 14,000 appraisals for clients ranging from multi-national, multi-billion-dollar Fortune 100 companies and financial institutions, to privately-held, local manufacturing and services companies. Our qualified, certified and experienced appraisers exceed expectations for a wide range of appraisal needs meeting IRS, FASB, IFRS, USPAP, and FIRREA requirements.

Throughout all these experiences, the Sobel Valuations practice has maintained a 100% commitment to providing decision makers with a valuation report they can rely on when making short- and long-term decisions and establishing strategies for sustaining future growth and profitability.

Upholding that promise is how we have developed and sustained a reputation for our competence in conducting business valuations and appraisals for decades. Whether considering tangible or intangible assets, we understand the needs that drive business valuations for both small, entrepreneurial, closely-held business and large public companies. As a result, we have developed a distinctive one-stop-shop approach that brings efficiency, confidence and convenience to our clients. We make this happen by bringing together the experience, skills and services necessary for every situation. We assist clients with a business valuation but at the same time we can appraise anything from stocks to real estate to patents to machinery and more, giving our clients a fully integrated approach that is unparalleled in the profession. As such, for almost fifty years, our professional team has been recognized as premier providers of highly credible valuations and appraisals.

We are often asked when, or why, should a company seek a business valuation or an appraisal. There are many answers to this question! The wide variety of reasons for commissioning a professional business valuation cover many of the principal issues that span the life cycle of all businesses. For example, banks may be reviewing machinery and equipment or real estate as collateral for a loan, while the business owner may require a valuation for insurance placement, buy-sell agreements, deferred compensation, estate planning, tax, litigation, or succession planning.

Of course, a mature business or public company will have a very different set of drivers to prompt the need for a business valuation, but the underlying need for accuracy and transparency is present in every situation.

Business Valuation Services

Business/Minority Equity Valuations

There are many different reasons why a company’s leaders or an individual would seek a valuation. One such circumstance is for the purpose of valuing business equity – and especially the value of minority equity shares.

Corporate Planning

The process of corporate planning begins with a deep understanding of the company’s worth before discussing all the ways to increase profitability and shareholder value going forward. We can assist your compnay in a strategic plan for the subject business.

Deferred Stock Compensation

One component of the Jobs Creation Act of 2004, section 409A, states that unless certain requirements are met, deferred compensation is includible in current gross income. These deferred amounts are subject to taxes, fees and penalties at the federal – and in some cases – state and local level.

Due Diligence

Due diligence is most often applied when making major decisions regarding mergers, acquisitions, or other strategic alignments or purchases/sales that may be on the horizon. The parties involved are responsible for digging deep in order to truly evaluate the situation, get the facts, and paint an accurate picture of what is happening behind the scenes.

ESOP

An employee stock ownership plan (ESOP) is a type of qualified defined-contribution employee benefit plan under which the company’s capital stock is bought by its own employees. An annual valuation is essential to the ESOP process (and required by the IRS and the Department of Labor), providing a measurable value of the business.

Estate/Gift/Trust Valuations for Tax

When business ownership is transferred to the next generation at the death of the predecessor leader, the issue of estate taxes will arise. Having a valuation prepared can help the new owners manage the challenge.

Intellectual Property Appraisals

Performing an appraisal to gain awareness of the true worth of intellectual property is essential for companies and individuals. The process provides a defensible value of the IP and other distinctive ideas, products and services to be sure that they are not used without permission.

Matrimonial

While a marital dispute may begin as a private family matter, the final solution is usually influenced by the professional and financial complications that arise during disagreements of this nature. Rarely does the discourse take place between the divorcing couple alone. So if the threat of litigation is raised, the negative tone and demands of the situation may quickly evolve to include the need for a forensic accounting expert. Understanding the financial aspects of a marital dispute is extremely important.

Mergers & Acquisitions Support

The term Mergers & Acquisitions (M&A) is most commonly used to describe the consolidation of companies, or assets, through various types of financial transactions. When the parties are negotiating the terms of the deal and are seeking a fair financial solution, both parties rely on a consistent and honest assessment of the value of the business.

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