What is a Business Valuation?
A business valuation or appraisal is the independent and unbiased process of determining a supportable opinion of the value of a business, business ownership interest, security or intangible asset as of a specified date.
Select an experienced valuation firm
All Murphy Business valuations are performed by qualified, professionals experienced in all aspects of business valuation and business transfers. Our valuations are performed in compliance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP) as well as the Business Appraisal Standards of the Institute of Business Appraisers.
Compliance with industry standards ensures that proven peer-reviewed valuation methods are used to develop defensible opinions of value. Through participation in teleconferences and annual valuation conferences, Murphy appraisers stay abreast of developing valuation issues and related court cases.
Why perform a Business Valuation?
Sooner or later every business owner needs a reliable company valuation
for one or more of a variety of reasons:
|Business Sale||Financing||Shareholder Agreement|
|Estate Planning||Insurance Claims||Gift Taxes|
|“C” Corp. to “S” Corp. conversion||Allocation of Purchase Price||Valuation Reports|
Valuation Products Available
- Broker’s Opinion of Value – The Broker’s Opinion of ValueTM (BOV) Report is a small business pricing report which is our free valuation service to qualified business owners. The BOV report is used by buyers, sellers and business brokers, etc. to determine reasonable selling / listing prices for small companies.
- Calculation of Value Report – A Calculation Engagement occurs when the client and the appraiser agree to specific valuation approaches, methods, and the extent of selected procedures with minimal if any research into the history and nature of the subject business, industry trends and outlook, the economic outlook, financial benchmarks, etc. The Calculation of Value Report presents a Calculated Value. Contact Chris for Calculation of Value Report pricing.
- Business Valuation Report – A formal summary report that is used primarily for non-litigation situations. This restricted-use abbreviated report is typically all that is needed for determining the selling price of a business or assisting in establishing a buy-sell agreement between partners/shareholders. Contact Chris for Business Valuation Report pricing.
- Business Appraisal Report – This formal comprehensive report is suitable for litigation support and review by third parties such as the IRS. The report explains in a step-by-step manner what was done and how the value was derived. Contact Chris for Business Appraisal Report pricing.
The main questions addressed are:
- What is the real value of the business’s current assets?
- What is the business worth to an outside party of your company’s ongoing business (e.g. brand, revenues, profits)?
- What is the view of the current market conditions for related businesses (e.g. sales comparisons, what the banks are actually landing on, etc.)?
A business valuation is an amalgamation of answers to the stated questions above. Every valuation will be unique to your business, industry and sector focus.
To get your business valuation, Sign up below to get the process started.