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A sale of a corporation under an asset sale arrangement should be carefully planned to establish the personal goodwill that may exist and if it is being sold in a “separate transaction” apart from the sale of the assets of the corporation. This is particularly true where a closely-held C corporation’s transaction deal is structured… Continue >>>
Adjustments for reasonable or replacement compensation – whether in corporate practice or when conducting a business valuation can be one of the most difficult adjustments to quantify. There are numerous factors that should be considered when adjusting compensation levels. Oftentimes, American Business Appraisers find an individual’s, whether they are the owner or principle within the… Continue >>>
We can be your heavy machinery appraiser for negotiations of the buyout of lease equipment. Our equipment valuation services include heavy equipment appraisals, farm equipment appraisals, construction equipment appraisals, and more. Valuation of machinery is vital to the buyout process, and as a certified machinery and equipment appraiser we make sure it is done correctly… Continue >>>
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 >>>
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 >>>
A buy-sell agreement can be an important tool in smoothing any business ownership transition, whether the aim is to maintain control, provide liquidity and a ready market for the stock, retain key employees or ensure an orderly ownership transfer in the case of death, disability or divorce. Of course, it’s important to decide how to… Continue >>>
As mentioned in a previous article, valuing intangible assets can be an important part of any business valuation for marital dissolutions, gift tax determination, estate planning, shareholder rights cases, conversion from C corporation to S corporation or sale of a business. An experienced business appraiser will help you identify the intangibles unique to your business,… Continue >>>
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 >>>
Those in the market for a business valuation may be asking themselves “what exactly is an intangible asset?” Webster defines it as “something that represents value but has either intrinsic value or no material being.” Such assets, while difficult to identify and determine the value of, often play an important role when a certified appraiser… Continue >>>
Editors Note: As we begin using our new e-newsletter system, to ensure you’ll continue to receive the e-newsletter, please take a moment to update your email address at www.abavalue.com and select from the left column subscribe to ABA’s e-newsletter. Critical Planning Steps What immediate steps can be taken to help double a company’s value? The… Continue >>>
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