Real Estate market and
Banking
Forensic investigation
Death of a shareholder
Tax services
Planning to sell up and
exit the company.
Divorce settlement
requires value and payout.
Sellers
Own retirement as
business owner
Mergers
Valuation Standards
Valuation standards should be principle based and adequately address the development of a credible opinion of value and the communication of that opinion to the intended user. Standards are to be created and revised, when necessary, by way of a transparent process after appropriate exposure.
Fair Market and Fair Value
The Fair Market Value is the price an asset would sell for on the open market when certain conditions are met. The conditions are the parties involved are aware of all the facts, are acting in their own interest, and are free of any pressure to buy or sell and have ample time to make the decision. Fair Market Value is by far the most used standard of value. Fair Value is the estimated price at which an asset is bought or sold when both the buyer and seller freely agree on a price.
Book and Asset based value
Book value of a company is simply its assets minus its liabilities. This means the total value of all assets except for intangible assets with no immediate cash value such as goodwill. Liabilities include all current and long-term monies owed. Asset based approach is a type of business valuation that focuses on a company’s net asset value. The net asset value is identified by subtracting total liabilities from total assets.
Liquidation and Investment Value
Liquidation value is the net value of a company’s physical assets if it were to go out of business and assets sold. Investment value is the amount of money an investor would pay for a property.
The following Valuation Services are provided for most industry types and business sectors:
Market based, asset based, and income-based valuation.
