Business Valuation

Bryan C. Rice is ready to assist you with business appraisal services. Generally, Business Valuation is the process of determining an estimate of value for the equity of a closely-held business enterprise using a set of established methodologies. Businesses are appraised for a variety of reasons, including the following:

  • The owner or owners desire to sell the business;
  • To assess the reasonableness of an offered price for a business or business interest or to use to make an offer for a business or interest therein;
  • An owner wishes to sell his interest in the business;
  • The business or interest therein must be appraised for Federal Estate or Gift Tax purposes;
  • A dispute between shareholders or partners necessitates a buy-out, or redemption, of one of the shareholders or partners;
  • Corporate governance requires a periodic valuation;
  • The value of a business or business interest must be determined due to the divorce of an owner;
  • To determine the loss of value due to the destruction of a business that has been destroyed or permanently impaired by the actions of a third party;
  • To determine a loss in value due to the oppression of minority shareholders or to non-compliance with contractual agreements to transfer ownership of a business or interest therein.

The process of business valuation generally includes the following steps:

  1. Determine the reason for the appraisal
  2. Establish an understanding as to the scope of the report that will be required depending on the reason for the appraisal
  3. Establish a range of fees or fee estimate for the appraisal
  4. Determine the appropriate standard of value for the appraisal
  5. Request the documents and information that will be required to perform the appraisal
  6. Analyze the information and perform industry and economic research
  7. Apply business valuation methodologies appropriate to the engagement
  8. Communicate the opinion of value

Bryan and his team have appraised numerous businesses across a wide range of industries as well as a number of different types of professional practices.