Business Valuation Services
The economic value of an ongoing business
enterprise is not determined by the assets the business owns, but by the cash flows the business generates from using those
assets. Unless you are liquidating a business, the market price of your equipment is usually not the most important factor
to consider. More important is how you are using that equipment to create value in your business. Business valuation is a
complex area and we have the specialized training to do it correctly. Tedd Powers is certified as an Accredited Valuation
Analyst by the National Association of Certified Valuation Analysts (NACVA). Our valuations comply with IRS Revenue
Ruling 59-60 and all of the professional standards of NACVA.
To properly
value an ongoing business enterprise, our valuation experts will thoroughly examine the fundamentals of the target company
and interview the management team to determine the proper inputs for the process. We then apply sound financial principles
to determine the fair market value of the firm. In compliance with IRS Revenue Ruling 59-60, we consider all three broad
approaches to valuing a business: the asset approach, the market approach, and the income approach. The asset approach often
establishes a minimum "floor value" for a business. The market approach compares the fundamentals of the target
company with those of similar companies which are publicly traded or have recently been sold. The income approach considers
the future economic benefits derived from the continued operation of the company. During the valuation process, our
experts will:

Exam current and historical financial statements
Calculate invested capital including off balance sheet items
Assess industry and firm specific risk factors Identify the
appropriate discount rate Estimate growth rates at various
stages Determine reinvestment needs Forecast future cash flows
Assess enterprise value including debt and equity components |