Business Valuation Firm Chattanooga
Chaffe & Associates (“Chaffe”) is a trusted business valuation firm serving Chattanooga, TN, clients. For more than 40 years of experience, our analysts have provided accredited business appraisals to local owners and executives throughout Hamilton County. Our valuations are grounded in methodical standards and reflect local market realities. The firm can help protect your financial future when addressing key needs like acquisitions, succession planning, tax reporting, and litigation.
Our professionals, holding Accredited in Business Valuation (American Institute of Certified Public Accountants) and Accredited Senior Appraiser (American Society of Appraisers) credentials, provide insights whether you are preparing for a business sale or facing a Hamilton County Circuit Court dispute. Discover the value of “The Chaffe Difference.”
Chaffe’s Business Valuation Services
For businesses operating in the greater Chattanooga area, Chaffe provides comprehensive business valuation services. Our firm specializes in preparing valuation reports that are for nearly any requirement. For Fair Market Value and Fair Value assessments, Chaffe delivers business and intangible asset valuations to Chattanooga clients in consequential financial scenarios. Owners, executives, and legal counsel rely on these valuations to address financial reporting, shareholder disputes, IRS compliance, and ownership transitions. Get in touch with us today to discuss your specific business valuation needs.
Valuation for Legal & Litigation Support
Chaffe provides expert witness testimony services as a component of our legal and litigation support valuation practice. Our business valuation firm serving Chattanooga, TN, clients makes sure all work for clients meets rigorous professional standards when we act as an expert witness.For contested matters like shareholder or partnership disputes and divorce mediation proceedings, clients need valuation opinions that are defensible under cross-examination. Our firm acts as an expert witness in relevant scenarios. These include shareholder dispute or marital dissolution and cases within Hamilton County Circuit Court litigation.
Valuation for Selling or Transferring a Business
Effective business transitions, whether through a sale or transfer, expect complete financial understanding. Through our consulting on exit planning and pre-sale valuation, we help business owners identify value drivers and explore all available exit alternatives. These objective evaluations result in sensible pricing and support a smooth transaction from start to finish.
Tax Valuation Services
Tax-driven valuations play a critical role in estate planning and tax compliance. Estate and gift tax valuations help safeguard family wealth by supporting ownership transfers and meeting IRS reporting requirements.We also provide valuations for charitable contributions, ensuring qualified documentation for tax filings. In addition, documenting Qualified Small Business Stock (“QSBS”) eligibility through well-supported valuation analysis can unlock significant tax savings for shareholders in a stock sale.
Financial Reporting Valuation Services
Under current financial reporting standards, companies must rely on rigorous valuation analyses to support their financial statements. Our valuation professionals perform a range of financial reporting valuations, including Purchase Price Allocations (ASC 805) following business combinations and Goodwill Impairment Testing, helping companies comply with accounting standards and withstand auditor review.
Serving Chattanooga With Industry Focus
Chaffe delivers business valuations to Chattanooga companies built on decades of experience across all industries including industrials, healthcare, distribution, and business services companies. We understand how local economic conditions influence company values and EBITDA Multiples. These localized insights produce reliable business valuations for Chattanooga businesses.
Valuation and the Chattanooga Economic Landscape
The Chattanooga, Tennessee, economy steers company values in the area with the regional economic landscape molding EBITDA multiples, and expected returns inside Hamilton County. The local economy and market conditions depend on organizations such as:
- Erlanger Health System
- Blue Cross Blue Shield of Tennessee
- Unum Group
- Astec Industries
- Chattanooga Chamber of Commerce
The status of Tennessee’s economy may be found at TN.gov.
What drives higher valuation multiples?
While many factors enhance valuation multiples, buyers typically evaluate the growth opportunity and predictability of cash flows, and how scalable and transferable the core business operates.
How do I get my business appraised?
Completing an appraisal involves selecting a credentialed professional holding ASA or ABV status. Expect to produce at least three to five years of financial statements, tax returns, and organizational documents. The analyst reviews these records, conducts interviews, and may apply the Income Approach, Market Approach and Asset Approach, as relevant.How can I avoid capital gains tax in a business sale?
If the business sale qualifies, a transaction involving a Qualified Small Business Stock (“QSBS”) status bypasses federal capital gains on eligible sales. A valuation documenting your firm’s FMV and asset composition may support these claims.
What is a professionally prepared valuation?
A formal appraisal represents a detailed business valuation following recognized professional guidelines by an analyst holding ASA or ABV credentials. These reports document the application of the Income Approach, Market Approach, and Asset Approach. A professionally prepared valuation satisfies the IRS qualified appraisal requirements.Where can I find additional resources on business valuation?
AICPA/ABV and the American Society of Appraisers (ASA) offer additional insights on the business valuation profession and standards.
For Chattanooga Clients – Our Business Valuation Process
Chaffe draws upon a five-step business valuation process to generate defensible results for Chattanooga, TN, businesses. The engagement starts with an initial assessment to define the scope. Next, the business valuation team gathers all financial and operational data and provides a detailed analysis.
Based on the client’s goal, our analysts apply the Income, Market, and/or Asset Approach, tailoring a custom-made valuation. After reviewing draft conclusions with the client, we deliver a comprehensive final report. The firm remains confidential throughout the project.
Understanding Intangible Value: Enterprise vs. Personal Goodwill
Goodwill is typically associated with the intangible value of your firm. Enterprise goodwill belongs within the business structure. Personal goodwill, in contrast, follows the individual. Specifically, valuing personal goodwill creates clarity during divorce litigation. In addition, classifying goodwill components can impact purchase price tax liability.Professional Credentials Withstanding Scrutiny
What are the benefits of working with an IRS-Qualified Appraiser?
Engaging with a valuation professional who meets the IRS definition of a Qualified Appraiser can mitigate the risk of costly audits and penalties related to an estate and gift tax valuation. Chaffe’s business appraisers maintain the required education and experience set by federal treasury regulations. This professional rigor protects your financial interests.
What is the valuation multiple formula?
No universal formula dictates company worth. Our analysts determine an appropriate EBITDA multiple by examining necessary factors, such as company fundamentals and outlook, firm size, industry trends, and national and regional economic conditions, and other relevant data.How accurate are valuation calculators?
Valuation calculators produce unreliable calculations of value from the IRS, financial reporting, litigation, and exit planning perspective. Online tools overlook key valuation elements, including qualitative drivers, intangible assets, customer concentration, and specific Chattanooga market conditions.
Which valuation approach is most accurate?
Objective results require evaluating and reconciling all three valuation methodology, income, market and asset approaches.The Three Approaches: A Weighted Conclusion, Not an Average
Chaffe provides reliable, well-supported appraisals by customizing the application of the Market, Income, and Asset Approaches. Our analysts tailor the weighting of these methods based on the business’s unique circumstances. This includes prioritizing future earnings for service businesses versus net asset values for real estate firms. Our business valuation firm serving Chattanooga clients aims to deliver a fair market value conclusion that is prepared ultimately for IRS review.
- The Income Approach
The Income Approach converts anticipated future economic benefits into a single present value by applying a risk-adjusted discount or capitalization rate of projected cash flows.
- The Market Approach
The Market Approach determines the value of a business by analyzing the market prices and valuation multiples of similar publicly traded companies or available merger and acquisition transactions for private and publicly traded companies.
- The Asset Approach
When applying the Asset Approach, we determine the value of a business by adjusting all individual assets and liabilities by the current Fair Market Values (“FMV”). This computation results in the value of the assets as well as the net equity.
Contact Chaffe
Want to learn more about how Chaffe’s credentialed business valuation professionals can help you with a business appraisal for your Chattanooga company? Contact Chaffe & Associates today at (504) 524-1801 or Info@Chaffe-Associates.com to learn more about “The Chaffe Difference.”
Founded in 1982, Chaffe & Associates is a leading Southeastern investment bank and business valuation firm. Located in downtown New Orleans at 201 St. Charles Ave., Suite 1410, New Orleans, LA, 70170, we serve clients across the Southeast including Louisiana, Alabama, Mississippi, Tennessee, Texas, Georgia, and Florida.