What is the business worth? Jones & Roth can answer that question.
It is critical you have a sound, professional business appraisal by a certified appraiser whether you are selling or buying a business or an interest in a business, planning your estate, preparing the tax filing of an estate, settling a contract dispute, or involved in a divorce. Valuing a business requires a broad scope of technical and business experience. Judgment, analysis, and independence are key factors in the services we offer clients.
We apply sound appraisal techniques and a thorough understanding of corporate finance and today’s tax laws to provide a valuation tailored to your business and situation. We have experience in appraising interests in all business types (corporations, general and limited partnerships, LLCs, proprietorships, including real estate joint ventures/undivided fractional interests) in virtually all industries.
Our business valuation team is one of the most experienced teams in Oregon. Led by Bill Mason, ASA, CPA/ABV, CFF, our team has served as expert witnesses for our clients in US Tax Court, Federal District Court and state courts on valuation matters and have been appointed by courts to advise them on valuation matters.
CPA/ABV – Certified Public Accountants with an Accreditation in Business Valuation American Institute of Certified Public Accountants
ASA – Accredited Senior Appraisers in Business Valuation American Society of Appraisers
CFF – Certified in Financial Forensics American Institute of Certified Public Accountants
Business Valuation News
In the market approach, the value of the organization can be compared to recent market activity whereby sales of similar interests in the same or similar industry. Valuation multiples, which are determined by dividing the sale price by a relevant financial metric (such as revenues), can be applied to the target company to determine an estimate of fair market value.
This income approach considers the expected periodic cash return that could be derived from an ownership interest in the equity of a company. The periodic cash flow stream can be developed in two ways: based on a discrete cash flow period then capitalizing the cash flow of the final period to…
The asset approach is also referred to as the adjusted net asset approach or the net asset value approach. All these names generally mean the same thing. This method is most appropriate when valuing a holding company (an entity holding various investment assets such as real estate and/or securities) or when valuing a marginally profitable company. Companies such as those are valued based on their underlying asset values…
This is Part 1 of a four part series that will serve as a valuation primer. The purpose of Part 1 is to give an overview of common terms and methods used to value an equity interest in a company.
The issue we are trying to resolve when valuing a business is the price that two independent parties would pay for or be willing to receive for the interest they hold. The value of a business interest depends on the future benefits that will accrue to it. The financial benefits from ownership must come from one of the following sources: distribution of earnings, from the sale of the interest, or distribution from the liquidation of assets. In determining the value of a business interest, one should focus on the benefits the shareholder(s)/member(s) may receive from long-term ownership in the securities. In appraisal terminology, these three sources of return correspond to the income, market, and adjusted net asset value approaches, respectively.
A business valuation, or also sometimes referred to as a business appraisal, is a formal process to inform a business owner or a shareholder of the value of their interest in the company. A company can take many different forms and hold a variety of assets or perform a variety of services but a business valuation can use the information provided by a company to give an opinion of the value of that business.
Aren’t estate taxes and estate planning based on the “fair market” value of assets at the date of death or the date of the gift? You only thought so! Fair Market Value is defined as “…the price at which property would change hands between a willing buyer and a willing seller…
Capitalization of Earnings versus Discounted Cash Flow. Which calculation relies on greater speculation? Does the court need some education? Is your appraiser not properly incorporating available financial information, or has the appraiser not asked all the pertinent questions?…
Has your business appraiser appropriately valued the enterprise, or enterprise interest, or has the business appraiser included goodwill assets which are not “owned” by the enterprise? Is your client buying…
Jones & Roth was honored to participate as a sponsor and round table facilitator at the 2nd Annual Manufacturers Summit held at the Solar World headquarters in Hillsboro Oregon. The October 29. 2015 manufacturers event was organized by the Hillsboro Chamber and included additional sponsorship from Resource One, and Applied Materials.
Business Valuation Team
William V. Mason, ASA, CPA/ABV, CFF
Managing Senior Financial AnalystBio
Jason Bolt, CFA/ASA
Business Valuation Manager