Corporate Valuations
Common methods of valuation include:
- Income Approach
- Asset Based Approach
- Market Approach
Common reasons for corporate valuations include:
- Sale of organization
- Purchase of organization
- Partial Sale or Minority Shareholder Interest (less than 50% ownership)
- Share holder wants to exit the organization
- Share holder dies and the estate does not want to continue ownership interest
- Tax planning
- Estate planning
- Divorce
- Inheritance tax values for estate taxation
- Litigation
- Merger
- Acquisitions
Valuation procedures to determine the value of your organization:
- Review the nature and history of the Company
- Research industry trends
- Analyze the organization taking into consideration the national, regional and local economy
- Analyze financial records of organization’s liquidity, debt coverage, leverage and overall performance
- Analysis of the earnings, cash flow and dividend-paying capacity of the organization
- Inquiry concerning the organization services, operations and economic potential
- Valuation analysis of the organizations operations
- Capitalization of cash flows of the organization’s future operations
- Review and consideration of transactions of similar business interests
- The marketability, or lack thereof, of the Company’s stock