When a C corporation elects S corporation status, the company does not just change its tax treatment, it also creates a valuation question with real financial consequences. The date-of-conversion fair market value becomes the key reference point for built-in gains analysis, shareholder tax planning, and, in some cases, future transaction structuring. For business owners and […]
A charitable contribution of closely held stock can create meaningful tax benefits for a business owner, but the deduction is only as strong as the underlying valuation support. For privately held companies, the IRS generally requires a qualified appraisal that establishes fair market value, and the appraisal must be prepared with the same discipline used […]
Business valuation for litigation and legal disputes is not the same as valuation prepared for a sale, tax planning, or internal decision-making. When a valuation is intended for court, arbitration, mediation, shareholder disputes, divorce, dissenting shareholder matters, or damages analysis, the appraised value must be supported by a defensible standard of value, independent judgment, and […]
A partnership buyout valuation determines the fair value of a departing partner’s ownership interest in a privately held business, and it often becomes the most consequential number in the transaction. For U.S. business owners, the valuation question is rarely just about “what is the company worth,” but also about which standard of value applies, whether […]
SBA 7(a) acquisition loans often hinge on one critical question, what is the fair market value of the business being acquired? For United States business owners, lenders, buyers, and advisors, an independent business valuation can determine whether a transaction is financeable, whether goodwill is supportable, and whether the purchase price aligns with market evidence. In […]
Personal goodwill and enterprise goodwill are two distinct value drivers that can materially change the appraised value of a professional practice. In business valuation, the difference matters because personal goodwill is tied to an individual’s reputation, relationships, and personal skill, while enterprise goodwill belongs to the business itself, such as its brand, trained staff, systems, […]
Intangible assets and brand equity can represent a substantial share of enterprise value, especially for businesses built on repeat customers, proprietary technology, contracted revenue, or strong market recognition. In a business valuation or appraisal, these assets are not valued by simply looking at balance sheets, they are measured through the cash flows they help generate, […]
Rising interest rates affect business value in a direct and measurable way, because they increase the discount rate buyers and appraisers use to convert future earnings into present value. In practical terms, when the cost of capital rises, valuation multiples usually compress. That matters whether a privately held company is being valued under an income […]
Enterprise value and equity value are not the same thing, and for privately held businesses the difference can materially change what an owner actually receives at closing or what an investor is really buying. Enterprise value reflects the value of the operating business before considering how it is financed, while equity value reflects the residual […]
Customer concentration can materially reduce the appraised value of a privately held business because it increases the risk that a buyer will not realize projected cash flow after closing. In valuation terms, heavy dependence on one or a few customers can lead to lower EBITDA or SDE multiples, higher discount rates in a discounted cash […]