Our financial valuation professionals apply decades of experience to the application of standard methodologies to provide independent valuations of:
A proper business valuation requires that the valuation team synthesize the unique characteristics of the subject business, including its:
A complete valuation analysis includes consideration of the three generally accepted valuation methodologies (Cost, Income and Market):
Cost /Asset Approach – measures the value of an asset by the cost to reconstruct or replace it with another of like utility. When applied to the valuation of equity in a business, value is based on the net aggregate fair market value of the entity’s underlying individual assets (“adjusted book value”).
Income Approach – measures the income-producing capability of an asset or business. The Income Approach estimates value based on the expectation of future cash flows that the asset or business will generate, such as cash earnings, cost savings, tax deductions, and the proceeds from disposition.
Market Approach – measures the value of an asset or business through an analysis of recent sales or offerings of comparable investments or assets. The Market Approach is applied by utilizing either the Guideline Public Company Method or the Guideline Transaction Method, or both.
Reconciliation – The results of each approach are reconciled and weighted in consideration of the nature of the business or interest being valued to form an opinion of value.
Our valuation analyses comply with USPAP (Uniform Standards of Professional Appraisal Practices) and, depending upon the situation, other applicable standards including Internal Revenue Ruling 59-60.
When valuing a fractional interest in a business, we may consider the applicability of discounts to the pro rata value of the interest in recognition of potential lack of marketability (“DLOM”) of the interest being valued and lack of control (“DLOC”) in the running of the subject business.
This is a very general overview of what it takes to provide a complete, independent opinion of value of a business. Please contact one of the senior professionals listed below to have a more detailed conversation.
Our Business Valuation team collaborates with our internal multi-disciplinary professionals to provide the value analyses and fresh independent opinions to fiduciaries, financing sources and investors for public and private company transactions.
Marshall & Stevens performs portfolio valuations for a large and diverse pool of investments and investment funds.
Marshall & Stevens performs real estate appraisals for financing, estate and gift tax planning and reporting, buy/sell consideration, insurance, easements, property tax, and litigation.
Marshall & Stevens provides appraisals of machinery, equipment, vehicles, and special purpose property for financing, financial reporting, property tax, insurance, and litigation.
We work with our clients and their financial institutions, investors, insurance companies, and other trusted advisors to provide the independent value opinions they require.
Each audit firm has their preference for the way certain financial instruments should be valued. We initiate a call with the audit team before performing the analyses to reduce the potential for delays and surprises.
We focus on efficiency. Our team includes senior valuation professionals with experience working at international audit firms – they did the same review work your audit firm valuation professionals do – making them a great resource to our clients. These specialists understand the materiality thresholds while meeting regulatory requirements.
We provide negative and positive assurance letters upon request.
Marshall & Stevens provides Fairness and Solvency Opinions, valuation analyses, investigative accounting, and expert witness services to assist public and private clients with their important transactions and litigation matters.
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