Contact Us

Business Valuation

The basic guidelines provided are found in IRS ruling 59-60, which lists the following eight factors to be considered when attempting to place a value on a closely held business:

  1. The nature of the business and its history since inception;
  2. The general economic outlook and the condition the specific industry in particular;
  3. The book value of the stock and the final condition of the business;
  4. The earning capacity of the company;
  5. The dividend-paying capacity;
  6. The enterprise’s goodwill and other intangible values;
  7. Sales of the stock and the size of the block of stock to be valued;
  8. The market price of stocks of other corporations engaged in the same or similar business and trading stocks in a free and open market, either on an exchange or over the counter.

As a matter of fact, these are the minimum requirements in all business valuations. In addition we will also consider other factors, which depend on the purpose of the valuation exercise. As a consequence, the same business often has different values depending on the valuation purpose. For example, a valuation performed for an Employee Stock Ownership Plan (ESOP) would normally differ from one performed for a business combination.

What all there mean is that the process of business valuation is a healthy mix of art and science, and we as the valuation analyst, will try to fully understand and properly document the intended purpose of each valuation before doing anything else. We will then use our wealth of knowledge in financial accounting and analysis and extensive experience in a variety of business sectors to come up with a value for your business and assets.

Home Page | About Us | Business Valuation | US Investment | Contact Us | 主頁 | 團隊介紹 | 公司估值 | 投資移民

© LA First Tax & Financial Services. All Rights Reserved.