I receive many requests for Certified Business Evaluations.
Sometimes the inquirer isn't exactly sure of why it is needed. Usually their accountant, attorney or lender is requesting the evaluation.
Evaluations of Businesses (appraisals) are needed in many different areas:
- Buyers of businesses need to understand: "How the Business was Priced."
- Sellers of the business need to obtain the "The Selling Price."
- Gifting a business to a family member: the accountant and/or tax attorney need a base for the tax structure.
- Lenders of money for businesses want to verify that the purchase price is what it should be. They will request an evaluation of the business from a certified source.
- Divorce attorneys need the value of the business to effectively represent you in determining the division of the family assets. The family business is a substantial and important asset and has Value.
- Partnership disputes: "How much should I pay to my Partner to get him/her out of the business?"
- Estate Planning: when creating a will, the business evaluation sets the value as of the date and time the will was executed. An update of the evaluation usually is requested at the time the will is probated.
- Many widows are in need of evaluations for settling the estate of their spouses.
Among the many questions I receive regarding the evaluation are:
How much will it cost? Evaluations can start as low as $1,500.00 and go up to and beyond $35,000.00. It depends upon the type and size of business. It depends upon the reason for the Evaluation. It depends if the Evaluation is needed for court purposes? Each Evaluation is priced on its own merit.
Recent Evaluations that I have done:
- Auto Sales/Auto Repair business grossed over $2M. Father was retiring and was gifting 50% of the business to his son.
- Septic business—grossing over $1M. Widow needed for settling estate of spouse.
- Insurance Company. Divorce.
- School for Barbering and Hair—grossing over $500K. Needed for purchase of partner's shares.
- Roofing Company—grossing over $2M. Son buying business from father.
- Liquor Store for SBA lender.
- Construction Company—gross sales $20M. Father gifting his share to son.
- Miscellaneous Metal Fabricator—gross sales $5M. To establish market value.
- Industrial Baking Company—gross sales $3.5M. To establish market value.
- Manufacturer/Retailer Glass Products—$2M plus. To establish market value.
- Medical Supply Company. Divorce.
- Learning Center - Employee purchase of business. To establish market value.
- Excavation Business/Partnership. Court Dispute.