When do businesses need to be valued?
Most commercial clients need a business valuation when their company is being bought or sold. There are many other times when a valuation is needed.
Buy/Sell agreements
• Divorce settlements
• Eminent domain proceedings
• Employee stock ownership plans
• Estate planning issues
• Charitable gifting
• Mergers
• Planning stock options for key executives
• Retirement planning
• Shareholder disputes
• Succession planning
• Allocation of purchase price
• Feasibility studies for possible acquisitions
• Initial public offerings
• Financial restructuring
The book values shown on financial statements are usually quite different from the fair market value of a business.