Business Valuation Services from an experienced attorney.
Do you need to determine the value of your business? Work with a skilled attorney to obtain an accurate business valuation.
Woodman Garcia-Sepulveda Law offers expert advice for navigating the business valuation process. We can help with each step of your valuation, from selecting the right approach to ensuring that you uncover all assets. Contact us today to schedule a consultation!
Why Schedule a Professional Business Valuation?
Business valuations are used to determine the overall value of a business. It helps individuals assess the economic value of a business.
Valuations are most needed when buying or selling a business. However, there are a variety of situations where you need to determine the worth of a business, such as:
- Disputes with partners or shareholders
- Mergers and acquisitions
- Employee stock ownership plans (ESOPs)
- Obtaining financing or a small business association (SBA) loan
- Paying estate or gift taxes on an inherited business
- Developing a business succession plan
- Assessing the value of a business during a divorce
Ownership disputes and disagreements with partners or shareholders may result in the need for a business valuation. A professional business valuation may be necessary as part of the process of settling the issue.
A valuation is also necessary for most mergers and acquisitions. Before buying a business, shareholders want to ensure that the acquisition or merger is a smart investment.
These are a few of the situations where you may need professional business valuation services. However, no matter the situation, it helps to work with a skilled attorney. Allow us to walk you through the business valuation process.
Business Valuation During the Dissolution of a Marriage
If you or your spouse has an interest in a business that was acquired during the marriage, that interest may be considered joint property in the state of California. The valuation method used depends on whether you or your spouse wholly or partially owned the business and the structure of the business.
For example, the investment value or market value of the business may be used when assessing interest in a closely held corporation. If the business is wholly owned by you or your spouse, you may need to use the asset approach to assess the value of the business.
California courts look at specific areas when assessing the value of a business. They look at fixed assets, accounts receivable, the business’s goodwill, and outstanding debts and liabilities. These factors determine the total intrinsic value of the business but may not reflect its investment value or current fair market value.
At Woodman Garcia-Sepulveda Law, we can help you explore these options and ensure that you obtain an accurate accounting of the business’s value, whether it belongs to you or your partner. Allow us to protect your interests.
During the valuation process, all areas of the business are analyzed to determine their contribution to the total value. The valuation itself is typically completed by a certified public accountant (CPA) with the accredited in business valuation (ABV) designation. We can help you evaluate the results of their assessment and determine your next step.
Choose the Right Approach to Your Business Valuation
There are several approaches to business valuations, each with separate advantages:
- Asset Approach
- Income Approach
- Market Approach
The asset approach involves looking at the total assets and liabilities of a business to determine its value. This is the most common approach, as it provides a more accurate representation of the intrinsic value of the business.
The income approach examines the future earning potential of a business to assess its current value. The income approach may be used when considering acquiring a company, as it offers more insight into the long-term potential of a business. It paints a broad picture of the investment value of the business.
The market approach looks at factors from the current market to assess the value of a business. For example, if the market is experiencing growth and high demand, the business may receive a higher valuation.
The approach that you use depends on a variety of factors, including the reason for needing to determine the value of your business. Each approach can also provide different results depending on the circumstances.
At Woodman Garcia-Sepulveda Law, we can help you find the right approach to your business valuation so that you can obtain accurate results.
Receive Legal Guidance for Your Business Valuation
Business valuations are typically used during major transactions or civil litigation, making it essential that you obtain an accurate valuation. The laws surrounding business valuations are also complex, which increases the need to work with an attorney.
At Woodman Garcia-Sepulveda Law, we have assisted with numerous business valuations. Since 1998, attorney Flora Garcia-Sepulveda has helped clients throughout the state of California. With over 25 years of experience, few other attorneys are as well-equipped to handle your business valuation needs.