What Is A Business Valuation?
A business valuation or appraisal is the independent and unbiased process of determining a supportable opinion of the value of a business, business ownership interest, security or intangible asset as of a specified date.
Select An Experienced Valuation Firm
All Murphy company valuations are performed by qualified, professional appraisers experienced in all aspects of business valuation and business transfers. Our valuations are performed in compliance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP) as well as the Business Appraisal Standards of the Institute of Business Appraisers. Compliance with industry standards ensures that proven peer-reviewed valuation methods are used to develop defendable opinions of value. Through participation in teleconferences and annual valuation conferences, Murphy appraisers stay abreast of developing valuation issues and related court cases.
Why Perform A Company Valuation?
Sooner or later every business owner needs a reliable company valuation for one or more of a variety of reasons:
- Business Sale
- Shareholder Agreement
- Shareholder Disputes
- Estate Planning
- Insurance Claims
- Gift Taxes
- Partnership Buyout
- “C” Corp. to “S” Corp. conversion
- Allocation of Purchase Price
Valuation Products Available
Broker’s Opinion of Value – The Broker’s Opinion of ValueTM (BOV) Report is a small business pricing report. The BOV report is used by buyers, sellers and business brokers, etc. to determine reasonable selling / listing prices for small companies.
Calculation of Value Report – A Calculation Engagement occurs when the client and the appraiser agree to specific valuation approaches, methods, and the extent of selected procedures with minimal if any research into the history and nature of the subject business, industry trends and outlook, the economic outlook, financial benchmarks, etc. The Calculation of Value Report presents a Calculated Value.
Business Valuation Report – A formal summary report that is used primarily for non-litigation situations. This restricted-use abbreviated report is typically all that is needed for determining the selling price of a business or assisting in establishing a buy-sell agreement between partners/shareholders.
Business Appraisal Report – This formal comprehensive report is suitable for litigation support and review by third parties such as the IRS. The report explains in a step-by-step manner what was done and how the value was derived.