Janicek Valuation & Forensic Services, PLLC

What Is the Difference in All the Various Valuator Credentials?

Okay, you’ve seen the professional designations such as CPA, CVA, AVA, ABV, ASA, CBA, CFFA and so on. But WHAT ARE ALL OF THESE DESIGNATIONS? Isn’t just a regular CPA all one needs in a matter of valuation or forensic accounting?

What Is Property?

The definition of property is pivotal in any valuation. The valuation is essentially an economic quantification of the bundle of rights that are either held or transferred in connection with the valuation project.

Where Is the Excess Earnings Method Most Relevant?

The excess earnings method of valuation is the result of Appeals Revenue Memorandum 34, issued by the Internal Revenue Service. Its intended result was to separate the value of the tangible assets from the value of the intangible assets.

Baby Boomer Business Owners Need Valuation Help, Now More than Ever!

The baby boomer age bracket was a generation of entrepreneurs. More businesses were founded and grown by this group born from 1946-1964 than ever before. It has been estimated that between now and 2025 almost $10-trillion dollars will change hands as baby boomers pass their businesses on to the next generation. Here are some additional statistics to think about regarding this significant trend:

An estimated 65% to 75% of small companies in the U.S. – some 10 million – will likely hang up a “for sale” sign during the next 10 years, according to Inc. magazine.
Research from the Pew Research Center indicates that the oldest of America’s baby boomer generation started turning 65 on January 1, 2011, at a rate of 10,000 people a day — a trend that will last for the next 19 years.

While some will gift business interests, far more will be looking for an outright sale of their business. The sad truth is that many business owners will not be READY to reap the maximum benefits from their businesses. Realizing the maximum sales price of a business can take years of preparation. Do your clients know HOW to prepare for sale? Call a Certified or Accredited Valuation Analyst for assistance in helping your clients begin preparing.

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.

What Are the Key Elements to an M&A Due Diligence?

Due diligence is an important part of any acquisition or transaction. It is typically carried out by both legal counsel, and financial counsel. It will provide an understanding of the business as well as the risks including:

Can Anyone Do Valuations?

Certainly anyone has the capability to prepare a valuation. The bigger question is “Are they qualified to prepare the valuation?” It is important that you or your clients evaluate the potential expert in light of their education, experience, background, and credentials in the valuation arena.

What Are the Key Issues of Family Limited Partnerships?

When utilized correctly, Family Limited Partnerships can be very powerful estate planning and
asset protection planning tools. However there are a number of defects that can occur. The
following is a list of common defects in FLP structures, not in any particular order and certainly
not exhaustive:

How Are Valuations Used in Asset Impairment Studies?

The Financial Accounting Standards Board approved the issuance of Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. FAS 144 applies to recognized long-lived assets to be held and used or to be disposed of.

Should Certified Valuation Analysts Be Engaged Only for Valuations?

Certified Valuation Analysts (CVAs) are Certified Public Accountants who have obtained special training in financial analysis as well as business valuation theory, practice and reporting.

What Is EBITDA and Why Is It Important in Financial Analysis?

EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization. EBITDA earnings are used by many valuators and financial analysts as a method to compare the cash earnings of a subject company with cash earnings of comparable companies.