|
|
|
Control Stress or It Will Control Your Business
When we think about stress in the workplace, we usually refer to ulcers or heart conditions, but stress has a much broader impact. It is known that stress is linked to cancer, lung ailments, cirrhosis of the liver, immunity to common illnesses,...
FOCUS on Your Business Program. Power of FOCUS.
If you are anything like me, you probably find yourself often thinking of new projects to start, new things to achieve. I did that in my beginning on Internet. That in itself is very beneficial and indeed a required ingredient for success. The...
How to Make Money with a Home Based Business Online Without Spending a Dime!!
If you are reading this you must either already be working online or thinking about it. So many people are working online today and making a great deal of money doing so. I’m here to tell you how you can make money…and do it without spending a...
Is a Home Business Right for You?
Every morning as people wake up and make the commute to work, many dream of the day when they will finally work for themselves. Every time the boss lets someone know that they must give up their weekend plans for the good of the company, people...
Keeping your business alive: Use 4 color postcard printing!
There are a lot of ways to keep your business in the market world. By providing good service and better advertisements to express your operations to the public are two of the many services a business entity shall possess. How to create a good...
Never Throw Business Away
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated - send to: info@DebbieAllen.com Never Throw Business Away ...
The Benefits of Starting A Home-Based Business
The U.S economy continues to grow and corporations are enjoying large profits, but the majority of Americans still struggle with finances. This is one of the main reasons many people are looking into the benefits that a home-based business can...
The Ideal Length of Your Business Plan
How long should a business plan be? A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy. From surveys of investor needs, Growthink has...
The Top 10 Mistakes Made in Business Plans
Top 10 Mistakes Made in Business Plans Lenders and investors may see hundreds of business plans in a single day. Make your business plan stand out against the rest, and avoid these common mistakes. 1.Not proving that you have the management...
Why Small Businesses Fail
Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees. In his book Small Business...
|
|
| |
|
|
|
|
|
|
Business Valuations - An Art or Science- Could it be both
Business Valuations, according to several academic sources is one of the fastest growing niche practices in the United States, and all projections are that this will continue to occupy a leading spot in the accounting profession in the ensuing years. Several professional organizations in the U.S. such as the National Association of Certified Valuation Analysts, the AICPA and the Institute of Business Appraisers now cater the growing need for valuators and have adopted professional qualifications and credentials for their members.
The Need
Valuations are needed in several instances such as:
Purchase or Sale of Businesses
Liquidation of Entities
Gifting and Estate Tax Planning Strategies
Asset Allocations in Divorces
Buy Sell Agreements
Business Financing
Fairness Opinions for Shareholders
Litigation Support and Dispute Resolutions
Choosing a Valuator
It is critical that the right professional be chosen for the project at hand. Therefore, it is essential that the following be definitely considered:
Professional needs to have the necessary experience
Good presence of mind and effective communication skills are a must
Professional designations and continuing education in the field are necessary
Absolute independence of the professional is required and mandated
Obtaining references and past industry experience would enhance the decision of choice
Reviewing the professionals experience serving as an expert witness may be necessary at a later date
Factors
Affecting the Valuation
In coming up with a valuation report the valuator is required to come up with a value, which he or she can attest to. This takes into consideration several facets, which form the tenets of a sound valuation process.
Economic Trends have a bearing on mostly all valuations
Specific Industry factors need to be considered in all situations
Prevailing Competition is a critical factor
Market Position such as reputation, pricing, diversification of customer base are essential components of a businesses value
Intangibles and Goodwill which are the true worth of any business have to be taken account of, and by their very nature are difficult to quantify in several instances
The Final Report
Conclusions of a valuator are contained in a report as a vital component of the engagement. A well documented report is always composed of the following:
The purpose of the Valuation
Discussion of the Valuation process and the methodology adopted
A history of the business being valued
Composition of the ownership interests of the entity being valued
Financial Analysis and conclusion of value
The above touches on some of the very fundamentals of Business Valuations. Each valuation engagement is in itself a unique one and due thought process and consideration is key to the final determination of value.
About the Author
Bertorelli Gandi Won & Behti, Partner
Certified Public Accountants
San Francisco, Ca 94105
415.905.0330
www.bgwbcpas.com
jbgandi@bgwbcpas.com
|
|
|
|
|
|