Business Valuation Seminar Fraud

Business owners and their attorneys need to beware of companies that offer business valuation and consulting services seminars. These seminars are usually a closed invite only event that will snare a few business owners who are anxious to sell their business. The key is to convince  a business owner that his or her business is worth  much more than it is and in the process to charge a large fee  for a  written report to support this fictitious number.

If the owner balks on the fee, they will offer a” special seminar discount” to get the owner’s commitment  and then tell him or her that  they do not usually work with such a small business but will make an exception because they like the owner and the type of business. The goal here is to receive a fee of $25,000-$50,000 for a worthless document .   Many times the company presenting the seminar do not have competent employees with the skills, training, and credentials to prepare a professional business valuation.  Even worse, the unsuspecting business owner is now confused as to the real business value of his or her company.  Remember, if it appears to good to be true it probably is!

Business owners and their attorneys should use credentialed business valuation professionals who are Certified Valuation Analysts(CVA) or Accredited in Business Valuation( ABV)  to prepare a professional  business valuation for business  succession  planning and exit planning purposes.