Business Valuations – Page 6 – Janicek Valuation & Forensic Services, PLLC

Divorce Valuation: Should Discounts for Loss of a Key Person Be Considered?

In making a divorce valuation, it is generally not appropriate to apply a discount for the loss of a key person if there will be no change in management and no key people will be leaving the company. The divorce value is generally measured

What Are the Ten Most Common Errors Found in Valuation Reports?

A valuation report with errors is never a good thing and can hinder the purpose of the valuation to begin with. The ten most common errors found on valuation reports are

Common Business Value Drivers

What causes a business to sell quickly and receive a premium price from buyers ? The answer to this question are business characteristics called value drivers. The value drivers buyers look for that are common

Planning for the Sale of Your Business

The sale of your business requires as much thought and planning as when the business was originally started. Experience has shown that a business owner who sells his business without proper planning does not have a successful sale process. Some of the key mistakes sellers make pertain to the following:

What’s So Hard about Valuing Interests in Family Limited Partnerships (FLPs)?

The valuation of a limited partnership interest in an FLP requires the same diligence as theappraisal of a minority interest in any other business enterprise. An experienced valuatorwill apply the appropriate methodologies from the Asset, Income and Market Approaches toderive a non-controlling, marketable value and then consider an adjustment

Will a Daubert Challenge Derail Your Expert?

As an experienced provider of litigation support services, I am aware of the unique challengesfinancial experts face. When a “financial expert” provides written or oral testimony to a trier offact, the following considerations are crucial:

What “Discounts” Should Your Clients Take Advantage of When Gifting a Percentage of Their Business? (for Estate Planning)?

Generally there are two discounts considered in the valuation of a closely held business: The marketability discount will apply in many valuation situations, whereas the minority discount will only apply when the interest being valued is a minority interest. The market

What Is the Capitalization of Earnings Method and When Should It Be Used?

In its simplest form, the Capitalization of Earnings Method converts an expected income level into value by dividing income by a capitalization rate. This method has the following characteristics:

Valuation Perspectives: Valuation vs. Calculation – What is the difference?

Certified Public Accountants who provide business valuation services can offer a valuation engagement or a calculation engagement as defined by the statement on standards for valuation services no.1 (SSVS No.1) issued by the American Institute of Certified Public Accountants (AICPA). All members of the AICPA who provide business valuation services are required to follow thisContinue reading “Valuation Perspectives: Valuation vs. Calculation – What is the difference?”

In Divorce Valuations, Should a Discount Be Taken for Capital Gains Taxes?

Since divorce valuation generally does not contemplate a sale on which the seller will besubject to capital gains taxes, there should be no reduction for capital gains taxes.