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Do Your Certified Appraisal Services Include Valuations For Small Business Administration (SBA) Financing?

Our certified appraisal services help determine company value for many financial institutions in Arizona and nationwide. This includes performing business valuations for SBA and conventional financing. Our stock valuation services are performed by certified appraisers, who are well-versed in determining the value of a business. Valuation of a company is most often required of a… Continue >>>

Startup Valuation Assignments

Startup type businesses get valued at various stages in their evolution. The key point here is startups need to undergo a series of valuation exercises at regular intervals; and the exercise is typically performed with limited financial data being available for the appraiser to use (with limited data being the norm). There are many approaches… Continue >>>

Importance of Business Valuations before Retirement

Most business owners know that planning for retirement is crucial. However, according to Entrepreneur magazine, very few business owners are aware of the true value they have. Many have not taken the necessary steps to receive an accurate business valuation well before considering retiring. This makes it somewhat difficult to ensure they receive adequate value… Continue >>>

Benchmarking (adding value)

Assessing risk is a crucial part of valuing a closely-held business. Business appraisers use risk assessments in the income approach to estimate rates of return (discount rates) and in the market approach to select valuation multiples. All else being equal, the higher a company’s risk, the lower its value, conversely lower risk (value drivers) increases… Continue >>>

Tax Reform & Reasonable Compensation

The Tax Cut and Jobs Act (TCJA) contains a provision for reasonable compensation as defined in IRS Code Section 162. Reasonable compensation has always been an important issue in business valuation, but the TCJA has put a much brighter spotlight on the matter, which will be closer scrutinized starting in 2018. There is a new… Continue >>>

When an EBITDA Valuation Multiple Doesn’t Work

Many business owner’s when they want to sell their business, often read about an EBITDA (earnings before interest, taxes, depreciation and amortization) valuation multiples. But when they’re questioned further, what they really mean is they want to sell for a higher EBITDA valuation multiple than discussed in the industry journals. Here, I will identify occurrences… Continue >>>

IRS Estate Audits

The Federal estate tax is a tax on the transfer property at death. It is applied to estates for which at-death gross assets, the “gross estate”, exceeds the filing threshold. Included in the gross estate are real estate, cash, stocks, bonds, businesses, and decedent-owned life insurance policies. Deductions are allowed for administrative expenses, indebtedness, taxes,… Continue >>>

How to Benchmark the Value of a Business

What is a reasonable selling price for a business? This is a question that arises for many business owners and others interested in pricing a business. To some degree, every business is unique and therefore, no one-size-fits-all valuation formula works for all businesses or for a particular industry. For example, sometimes a dentist may hear… Continue >>>

Valuation & Business Concentrations

Webster’s dictionary defines “concentration” as the act or process of concentrating, especially the fixing of close, undivided attention. In business valuation context, it is assessing a company’s risk profile and financial outlook. The presence of substantial concentrations (i.e., risks) frequently results in a lower value, than what otherwise might be expected. Concentrations, from a conceptual… Continue >>>

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