Business Valuation

You’ve likely worked extremely hard to establish and build your business. Now it may be time to determine your company’s current market value through a comprehensive valuation. Even if you are not planning to sell your business, it is vital to know your company’s value when:

  • Negotiating a purchase/merger
  • Dissolving a marriage / partnership
  • Raise capital or financing
  • Maximizing company value
  • Planning your retirement
  • Estimating gift taxes
  • Creating buy/sell agreements
  • Ensuring adequate insurance
  • Going public – IPO offering
  • Establishing an employee stock ownership plan (ESOP)
  • Succession planning
  • Income tax disputes

Your valuation will reflect the unique attributes of your business.

Using up to 30 possible valuation techniques, we work hand-in-hand with you and your accountant to review your company’s financials, operations and intangible assets. After extensive research on both your company and your industry, we create a personalized report, written in a reader-friendly, non-technical style. With our proven methods, your business will receive the most accurate valuation possible for your needs utilizing at least 3 different business valuation approaches and the 7 – 10 most suitable valuation methods. Such a report will be in compliance with IRS standards, meet Revenue Ruling 59-60 guidelines, and include a comprehensive company, market, industry and economic analysis.

Future Value Estimate

If you seek to assess the potential future value of your firm, Veld Valuation can provide a Potential Future Value Estimate. This may suit your needs if you seek to raise capital, take your firm public, or otherwise capture the unique future value that your business possesses but has yet to realize. The Future Value Estimate is an unconventional valuation approach that is a hybrid of traditional valuation techniques coupled with pro-forma cost and revenue projections. A Future Value Estimate typically includes a ‘road-map’ as to how the applicable party will be able to realize the indicated firm value. The comprehensiveness of such estimates, as well as the implementation roadmap may vary dramatically, as may the size and subjectivity of the value estimate itself.

Preliminary Value Estimate

A cost-effective alternative to the fully accredited certified valuation is the Veld Mini-Valuation, otherwise referred to as a Preliminary Value Estimate (“PVE”). If your company qualifies, this condensed form of a valuation oftentimes suits your needs, without incurring the expense typically associated without the documentation and research that a comprehensive certified valuation commands. The Preliminary Value Estimate is not in compliance with IRS standards or IRS Revenue Ruling 59-60.

This report will not hold up in court if its intended purpose is for dispute resolution or planning for certain events (e.g. partnership dispute, non-amicable divorce, ESOP establishment, initial public offering, etc.).

While the report will include a company overview, a full explanation of the valuation methods applied and supporting evidence (as applicable), it may not include an on-site inspection. Unfortunately, due to the abbreviated nature of this and less comprehensive valuation offerings, we cannot provide these in conjunction with our Expert Testimony Services.

Opinion of Value Report

As we strive to provide our clients with the most appropriate option for their needs, rather than the most costly option (be skeptical of firms that insist on performing full-valuations), The Veld Group also offers a simple Opinion of Value report, and Opinion of Value Letter. While these products provide more ‘casual’ opinions of value that rely more on the valuator’s expertise and experience than exhaustive analysis, we have found that such low-cost opinions of value are often sufficient for our client’s needs.

The Opinion of Value Report is a brief valuation report that is typically based on 1-3 of the most applicable valuation methods, with a brief market analysis. This report opines an estimate of value that is most heavily focused on comparable market sales taken from subscriptions based databases or in-house business sales comparisons, if available.

Opinion of Value Letter

The Opinion of Value letter is the most simplistic of our valuation based options. The Opinion of Value Letter is a very simple opinion letter which expresses an estimate of value whenever possible, or oftentimes, a value range wholly based on the valuator’s professional opinion. While the valuator’s opinion may typically also be a function of applied supporting data, the supporting data will not be provided as part of the analysis.
Examples of each valuation related product, and their intended purpose include:

Business Valuation > Connetquot Medical Products – New York
• Estate & gift tax planning; Retirement planning
Future Value Estimate > Otra Beer – Los Angeles
• Start-up Beer manufacturer firm sought capital to implement business plan
Prelim. Value Estimate > Yoshinoya Restaurant – Montebello
• Corporate restaurant sale to franchisee – Fair market value sale sought
Opinion of Value Report > Chubby Chassis – Fontana
• Auto manufacturer sought to merge with classic car / hot rod parts supplier
Opinion of Value Letter > Malibu Health & Fitness – Malibu
• Partners sought to evaluate the value of each shareholder’s equity stake