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Corporate Valuations

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