Business Valuation

Business Valuation

Understanding Your Company's Worth

What Is My Business Worth and Why Do I Need to Know?

 At JFCC, you will be working with a certified valuation analyst to estimate the value of your business using standards regulated by both the AICPA (American Institute of Certified Public Accountants) and NACVA (National Association of Certified Valuators & Analysts) - going beyond any cookie-cutter software program.  We combine our accounting and financial expertise with industry standards to complete your business valuation using three approaches:  An Asset-Based Approach, an Income-Based Approach and a Market-Based Approach.  (*Read more about each of these methods below.)

It is important for you to share with your analyst the full-scope of your business operations - from industry, to market, to economic considerations - and to explain the purpose for which you need the business valuation.  Are you doing some succession planning? Do you have a legal case which may be going to court?  Are you gifting stock and the business valuation will be attached to a tax return?  These factors will determine whether you need a Calculation of Value or a more researched and documented Conclusion of Value.

Working with JFCC and directly with a certified valuation analyst the first time is going to save you money by producing the valuation you need for the purpose for which you need it, utilizing an industry-standardized methodology to document your transaction or provide the pulse of your business for future succession planning.

Who needs a business valuation?

Business or Personal...

Are you going through a divorce and unsure how the business effects your settlement?  Are you preparing for a line of credit or making a large stock transaction in your business? Here are common reasons why clients need JFCC to complete a business valuation, the approach that best fits your case, and the type of valuation that best fits your need.

I am getting a divorce and the business is a marital asset.

JFCC will want to learn more about the process option you have selected for your divorce. Are you and your spouse looking for peaceful mediation? Or is this a divorce more contentious with attorneys and financial experts preparing for litigation?   The process option of your divorce will have an effect on what type of valuation you will need. Calculations of value can be less labor intensive and more affordable - but they are not suitable for court. If you anticipate finding yourself in front of a judge or divorce master, a Conclusion of Value will be the more suitable option.  The Conclusion of Value provides the level of documentation and procedural safeguards required for litigation in order to produce a defensible report subject to expert witness testimony. 


I want to retire someday and I don't know what will happen to my business when I do.

Valuation is vital to your succession/retirement planning. Business owners spend a lifetime building their businesses and then need to make the decision to pass it down to the next generation or sell.  A complete analysis and a calculation of value will help you quantify these decisions and prevent surprises when that retirement day finally comes.

Every Business Valuation Is Unique ...

Do I need a Calculation or a Conclusion of Value?

Divorce

  • Your JFCC analyst will want to learn more about your divorce process and financial goals to assess which valuation is best.
  1. Are both spouses owners in the business?
  2. Are you aware of alternative dispute resolution?
  3. Would you and your spouse want to amicably redesign your family, or will this go to litigation?
  • A calculation of value may be best if you and your spouse are looking at divorce mediation where both parties mutually agree on divorce assets.
  • A conclusion of value is needed if you are planning for litigation and you (and your attorney) will need an in-depth inquiry to support your case. 

Estate & Gift Tax Filing

  • If you need a valuation to substantiate your gift or estate tax filing, you'll likely need a Conclusion of Value to better prepare for the possibility of IRS scrutiny of your valuation and ultimately, the gift or estate tax amount paid.

Mergers & Acquisitions

  • If you're preparing to sell to or acquire another company, you are likely going to need a calculation of value that considers the synergistic benefits of the transaction. Our valuation analysts have the necessary training and skills to help you evaluate the pros and cons of such transactions.

Expert Business Valuation Strategist Serving Harrisburg & Central PA

Business Valuation

Conflict Resolution

Succession Planning

Divorce Mediation

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