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Business Valuations

Selling your baby is chuck full of emotions and questions. You've probably spent a life-time building it and are unsure what life even looks like not tied to it, not to mention the financial impact. There are so many shades to this topic. Some people call it mergers and acquisitions, we say it's more like a major life event! One you want to get right.

It's not possible to list every question you'll have when thinking about selling your business OR exploring buying one but here's a few of the common ones:
  • How much is it worth?
  • How do you figure that out?
  • Who will buy it?
  • When should I sell?
  • Do I add a partner? What does that change
  • How do my partners buy me out later?
  • What will this cost me in TAXES????
  • What does an asset purchase vs a stock purchase mean?
  • Do I get paid all at once, or is it ok to get paid over time? (risk vs taxes)
  • How do I finance a purchase?
  • How am I taxed as a business?
  • What type of entity should I form?
  • Why is SBA requiring a business valuation for my loan?
  • My estate attorney says I need a BV
  • My loved one passed and we need a BV for the estate tax return

The list goes on and on. Here's the good part, we totally get this stuff and here's why. We've owned multiple businesses ourselves in varying industries so we've personally walked this walk on both sides of the coin, buying and selling. 

On top of that, Bill Reichelt, CPA/ABV, our senior tax partner, has a business valuation license (ABV). It's the equivalent of a CPA license but in the business valuation world. His ABV license requires yearly continuing education and is governed by the American Institute of Certified Public Accountants. He's always up to speed on the many regulations and standards for valuing a business. 

Some CPAs think it's cool to jot down a value on a napkin, we've heard that banter at many a conference, but does that sound cool to you when you're livelihood is on the line? Maybe we're biased, but systems and standards that are proven and regulated to help provide the most accurate value of my baby sure sounds more solid. 

Rules on who can prepare a business valuation are getting stricter, especially when lending is involved. SBA requires a licensed individual. In addition to helping our own clients, we partner with attorneys and lenders to provide business valuation services for their clients. 

If you need a business valuation, there are several different levels based on depth and complexity. We'll help you pick the right one so you get the info you need at the lowest cost.