A business valuation uses financial analysis to determine a value using expected future benefits, market comparisons, and/or the net market value of the underlying assets. Businesses commonly obtain valuations for mergers and acquisitions, tax planning, litigation support, shareholder transactions, and strategic decision-making.
A proper business valuation requires that the valuation team synthesize the unique characteristics of the subject business, including its:
Our financial valuation professionals apply decades of experience to the application of cutting-edge methodologies to provide independent valuations of:
A complete valuation analysis includes consideration of the three generally accepted valuation approaches to value (Income, Market and Asset-Based):
The results of these approaches are reconciled and weighted giving consideration to the strengths or weaknesses of the inputs and approaches to value 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. Here is a list of common appraisal types:
The value of an operating company is based on the expected future benefits which can include cash flow and/or capital appreciation. Minority interests in privately held companies are typically discounted for lack of control and lack of marketability.
Our experienced appraisal teams uses modern appraisal techniques to value operating companies in a manner that will withstand the scrutiny of the Internal Revenue Service or Tax Court. We use real word methodologies that exceed IRS guidelines to meet adequate disclosure requirements.
When valuing a minority interest in an entity that owns real estate, marketable securities or oil and gas assets, we use BV Best Practices (see article) to calculate Fair Market Value using the Income Approach and Market Approach. These were the approaches used in the Estate of Elsie Church to support the lack of control (“DLOC”) and lack of marketability (DLOM) of the FLP interest.
Many of our senior professionals listed below have testified in tax court and have been published in authoritative texts on these issues. Please contact one of them to have a more detailed conversation.
It is fairly common for gift and estate tax clients to have promissory notes in their estates. Frequently, a note between related parties originates at a below market interest rate based on published IRS Applicable Federal Rates. This and other factors result in the note being discounted.
Marshall & Stevens uses proven methodologies to value privately held promissory notes where the terms of the note are compared to the market to determine if the note is worth less than the outstanding balance (see attached article).
If you are planning a transaction, resolving a shareholder dispute, preparing for a gift or estate tax transaction, or evaluating strategic options, Marshall & Stevens can provide an independent business valuation tailored to your needs.
Our valuation professionals have decades of experience supporting companies, investors, and advisors across a wide range of industries.
Contact our valuation team to discuss your situation and learn how we can help.
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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