Why Value A Business?

Why Value A Business?

Why do I need to have an independent valuation of my business? There are many reasons to value a business, including

• Merger or sale of the business
• Family succession planning
• Estate, gift and income tax filing
• Buy-Sell Agreements
• Executive Compensation (Options/SARs/Profits interests)
• Employee Stock Ownership Plans (ESOP)
• Stock Repurchase or Recapitalization
• GAAP Fair Value Accounting
• Litigation and dispute resolution

While business owners typically have a good idea of the value of their business, economic conditions and capital markets change and the value of a business can vary greatly under different circumstances. Chaffe’s M&A professionals are in tune with market trends, financing availability, private equity expectations, and prices paid for similar companies. If you are considering the sale of your business, you should have a realistic idea of what the business is worth prior to engaging with any potential buyers or investors. A business valuation will highlight value drivers, which may lead to ideas for improvement in advance of a potential sale, substantially improving the price.

In order to take advantage of estate and gift tax benefits, charitable income tax deductions, Louisiana capital gains tax exemption, and ESOPs, an independently prepared qualified appraisal is needed.

Due to the fact that Chaffe does not offer tax or auditing services, focusing solely on valuations, Chaffe is cost efficient and able to meet deadlines for assignments for financial reporting purposes, including purchase price allocations, impairment testing, intangible asset valuations, and portfolio company valuations. Chaffe adheres to the strictest standards, including the Mandatory Performance Framework (“MPF”) and has professionals with the Certified in Entity and Intangible Valuations (“CEIV”) credential.

Chaffe’s professionals have decades of experience as neutral consulting experts and expert witnesses in litigation and dispute resolution matters involving business value, damage calculations, infringement claims, shareholder oppression matters, and lost profits.

Why select Chaffe for your business valuation? We don’t dabble in business valuation. While Chaffe professionals carry many professional designations such as CPA, CFA, and Attorney, we work full time valuing businesses and business interests. Our extensive experience and credentials enable us to work seamlessly with your other professional advisors. Chaffe’s professionals stay current on all developments affecting business valuations and M&A markets including tax court decisions, tax regulations, GAAP rule changes, shareholder rights, and private equity and debt markets.

Over the past 40 years, Chaffe has never changed in how it treats and works with its clients. Every client is treated with the highest respect and personal attention they expect and deserve, as well as expecting and receiving the utmost confidentiality and professional ethical practices. Many parts to the transaction process contain miniscule details. Our staff are meticulous in finding and handling all critical and hidden details in every transaction. We pride ourselves in the service and quality each and every client receives. Here at Chaffe, we are certain that these qualities will continue for the next 40 years, and beyond.