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CBB&A, Inc.Professional Business Appraisal Confidential & Comprehensive..... WHEN DO YOU NEED BUSINESS VALUATION?
ESTATE and GIFT TAX: To develop and support the appropriate level of discount metrics to help minimize or eliminate problems with the Internal Revenue Service.
BUY-SELL TRANSACTIONS: To help define the value for buying or selling of a business or professional practice. Also beneficial in establishing value for partial ownership interest.
PARTNERSHIP & CORPORATE DISSOLUTIONS: necessary to perform an appraisal to determine the "Fair Value" of an enterprise so the equitable parties can divide the assets and intangibles for settlement of their particular dispute.
BANK FINANCING & SBA LOANS: Loans are usually dependent upon the value of the on-going enterprises' assets and sometimes intangibles. An independent business appraisal is required for certain SBA loan packages and could influence the rates and terms of the loan.
BUY-SELL AGREEMENTS: Value is established to avoid potential future problems for stockholders and partnership buyouts; it substantiates the asking price. This valuation process can greatly simplify negotiations during the term of the operating agreement.
SUCCESSION PLANNING:Typically used when small-midsized owned businesses wish to keep the business in the family but require distribution of shares to family members with an attached "Fair Market Value" for each shareholder.
INTANGIBLE ASSETS (Intellectual Property): For economic analysis and valuation purposes, it is often necessary to distinguish between tangible and intangible assets, as well as between real property and personal property assets. Cost segregation is supported. These distinctions are important for a variety of accounting, legal, financial and taxation reasons.
FASB 141 & 142:Financial Accounting Standards Board (FASB) requires valuation services for allocation of the acquisition purchase price among tangible assets, identification and classification of any intangible assets, such as, patents, copyrights, trademarks, trade secrets, etc. this is for compliance with SFAS 141 and SFAS 142.
IRS Section 409-A and FASB 123-R: Any stock option compensation having an exercise price below fair market value of the underlying stock as of the option grant date constitutes a deferred compensation arrangement for IRC 409-A. As new option expensing rules under FASB 123-R take effect, auditors will likely require independent opinions of value. Independent valuation analysis and reports will help eliminate onerous consequences of failing to comply with either of these pronouncements.
For our Large Corporate or International Appraisal Service CBB&A, Inc. is Proud Affiliate of BES©
BUSINESS VALUATION PROCESS BELOW
CBB&A, Inc. Confidential & Comprehensive®
The following should provide you with an overview of a typical appraisal assignment.
Introductory Meeting:In this phase we ask specific questions to get a better understanding of your particular circumstances for a business valuation. You are under no obligations or costs during this phase, we will offer solutions and any recommendations concerning your issues or questions.
Engagement Step 2: Upon us investing a reasonable amount of time to understand your specific requirements, we will prepare an "Engagement Letter/Agreement" explaining in detail what is to be valued, along with the purpose or use of the appraisal results. The Agreement will outline our fee/cost and arrangement for payment.
Documentation Step 3: This step requires us to ask for and obtain relevant information to perform the appraisal. In a typical valuation assignment we will provide you with a "request for documents" and "questionnaire" forms for your completion.
Valuation Step 4: In this step we analyze financial information and adjust operational cash flows. We search for economic and industry demographic information relating to your particular business or practice. We then reconcile the different indications of value produced by various valuation methods to form a final opinion of value.
Reporting Final Step: CBB&A, Inc. offers a wide range of appraisal services and each valuation report is documented in a selected reporting style or type depending on the purpose and use. The following is an overview of the different types of reports we offer, along with a short description.
- Summary Appraisal Report is a selective study of the business with limited market and industry analysis. We will analyze three-to-five years of financial information. We interview management and may conduct an on-site tour of the business. Generally applicable for: Mid-size buy/sell transactions, family succession planning, SBA and bank financing.
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Desktop Appraisal Report provides an estimate of value without on-site inspection or verification of information provided by client. This report type omits non-essential information and is intended and restricted for internal use only. Generally applicable for: verification of purchase price and smaller buy/sell transactions and collateral.
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Certified Machinery & Equipment Appraisal is tangible asset specific values available in Summary or desktop format and is available for any size business worldwide. The client must define the type of value appraisal, i.e., fair market value, orderly liquidation, or forced liquidation. This engagement can include all furniture, fixtures & equipment any type of business. This is a very specialized field and requires on-going continuing education. There are only 300+ Certified Machinery & Equipment Appraisers (CMEA) worldwide.
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