Business Valuations
Espen Jansen, the Managing Principal of Padgett Business Services of Colorado Springs, is a Certified Valuation Analyst. He is a consultant that knows value!
Why is a Businesss Valuation necessary?
Business interests often represent a significant asset. Business valuations are performed because ownership interests in privately held companies often represent a significant portion of one's estate and/or portfolio. The value, or worth, of an interest in a privately held company, as opposed to stock in a public company, is usually unknown because there is no active market to sell or trade that interest from which to ascertain or approximate a value. Value determinations are most commonly needed to calculate estate tax upon death, split up family assets in a divorce, or negotiate value in a purchase, sale or merger of a business enterprise. Besides these, there are many other reasons why a holder of an interest in a privately held company might require a business valuation.
How can a certified valuation analyst help you?
Many business owners believe the value of their business is net profit, or gross sales, multiplied by an industry rule of thumb. This is simly not the case. In fact, the application of an industry rule of thumb formula often results in a value determination that differs greatly from the actual vale that could be determined by a Certified Valuation Analyst (CVA).
Email or call today 719.388.8606 to speak to a valued consultant who knows value.
Business valuations are most commonly required in conjunction with any of the following situations:
- adequacy of life insurance
- bankruptcy and foreclosures
- buy/sell agreements
- charitable contribution
- eminent domain
- employee stock ownership plans (ESOPs)
- estate and gift taxes
- financing arrangements franchise valuation or evaluation
- gifting programs
- incentive stock option programs
- initial public offerings
- liquidation or reorganization
- mergers or acquisitions
- the sale of a business
- split-ups or spin-offs
- succession planning
Common consulting needs for valuations include:
- business disruption
- divorce partner disputes/dissenting shareholder situations
- wrongful death
