Should As Much Emphasis Be Placed on the Willing Seller As the Willing Buyer?

While it is important to consider a potential buyer’s positions in a business valuation, it is equally important to give consideration to the potential seller’s positions in a valuation.

Some Tax Court decisions have either modified or completely rejected an expert’s opinion of value because the expert focused solely on the buyer, with no consideration given to whether the value would be acceptable to the hypothetical willing seller. While the hypothetical buyer will only pay so much, the hypothetical seller will only accept so little.

A good valuation report will address considerations of both the buyer and the seller. Should you need business valuation assistance or have questions, please call one of our credentialed professionals at (615) 822-8342 or contact us via email.