Sam Kan & Company (SKC) is here when you need to hire a firm in order to prepare your business valuation. Just what is a business valuation? Simply put, a business valuation is a set of procedures that will facilitate the process used to make an economic value determination of an owner’s interest in their business.
The resulting valuation can be used by participants in the financial market when determining the price that they would be willing to offer or receive when completing the sale of a business. Additionally, beyond the selling price estimation, these same valuation tools can be used by appraisers to address disputes relating to estate and gift taxation, litigation in divorce proceedings, the establishment of a partner’s ownership value and various other business and legal purposes.
The specific market value evidence of businesses can vary widely and is mostly dependent on the reported market transactions in the business’ equity. A percentage of businesses are “publicly traded”, so that their equity shares can be traded in publically available stock markets. In these instances, major stock market-listed publicly-traded companies are easily calculated in regards to “market capitalization”.
However, some companies which are publicly-traded may have few recorded trades (this includes firms traded “over the counter”). A much larger percentage of companies are privately held. In the case of privately held companies, equity interests can be traded both irregularly and privately.
SKC provides a sound, defensible position of the value of your company. In this manner, business valuation is more of a financial art than a hard science. It’s important to understand this, since there is a subsequent need to thoroughly research, not only the company to be evaluated, but the industry, marketplace and economic environment, as well. SKC has the experience in performing just that type of research to provide you with a valuation report complete with testimony that is sound and defensible.
There is more than one type of valuation. Examples may include:
Business Valuation
Sam Kan & Company provides services that focus on client assistance, attorney assistance and helping other related parties involved in the estimation of closely held entities. This can be for the purposes of litigation including dissident and oppressed shareholder lawsuits, family legal matters and partnership disputes.
Valuations are also prepared in conjunction with the transfer of family limited partnership common stock for purposes of estate and gift planning. This can also apply to charitable remainder trusts and other similar transactions. SKC is also capable of assessing value associated with celebrity goodwill, intellectual property and professional licenses.
Valuations for Financial Reporting
Even though your company may not have internal valuation expertise, it must still comply with the latest pronouncements from the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards Board (IFRS).
With the advent of Sarbanes-Oxley, AICPA and international independence regulations, it’s important to understand that a company can no longer ask their own independent auditors to perform non-audit valuations. Because of this, both public and private companies are engaging independent firms, such as SKC, for assistance relating to their valuation needs.
SKC, while working with data provided by your company’s management, will utilize the most current methods that will determine fair values while we guide you through the valuation process. This will ensure the proper recording of complex business transactions that are supportable when being evaluated by IRS, SEC, business analysts and other financial entities.
Applicable services include (but are not limited to):
- Fair Value Measurements/Fair Value Option
- Stock Option Pricing and Restricted Stock
- Derivative Valuations
- Goodwill Impairment
- IFRS Business Combination Reporting
- Long Lived Asset Impairment
- Fair Value Reporting of Investment Portfolios
- Fresh Start Accounting
Sam Kan & Company will be there to help you through the entire valuation process while providing understandable information that you and your company can easily comprehend. With current regulations governing business accountability and the need for a supportable financial business evaluation, it just makes sense to let us assist you with the tools at our disposal to provide you with the services your company needs.
