Valuation is the process of determining the price or value of an ownership interest of an asset at a specific point in time. Unlike an appraisal of jewelry or real estate, business valuation includes the tangible and intangible assets of a company. When valuing an entity or a going concern, valuators rely on their experience and professional judgment to project future cash flow, determine appropriate discount rates, and estimate potential risk.
The process combines hours of research and analysis with the experience and judgment of a valuation professional. VFP performs valuation services for many different types of businesses, securities, intangible properties, holding companies, and economic losses/damages. Visit our blog Assets That VFP Values to learn more.
Valuations combine financial, economic, and market analysis with the strategic understanding of a business. Business valuation is complicated and in order for an appraiser to reach an appropriate value, they must consider the impacts of the economy, the industry, and the specific characteristics that drive and detract from the value of the business. A valuation should take into account the unique circumstances specific to the entity being valued along with the purpose of the valuation to determine the value of an ownership interest in the business. To learn more visit VFP’s Valuation Process blog.
Some samples of the work we have performed include:
- Valued a private company to facilitate a transaction and support tax positions for an intra-family transaction
- Valued a private company for a shareholder buyout in settlement of a dispute over compensation and non-compete agreement violation claims
- Valuation of minority interests in a real estate and portfolio of private companies holding company for gift tax purposes
- Valued a private company for use in mediation during a divorce
- Provided a fairness opinion to a private company board of directors on the price proposed for a “down round” investment by insiders
- Valued a bank loan portfolio and core deposit operations
To see more examples of our work, visit our blog Sample Engagements Performed by VFP.
At VFP, our experience has created a strong reputation for providing objective and thorough opinions reviewed by a wide range of professionals including: the IRS, SEC, regulators, courts, opposing council, banks, and potential buyers and investors.
Our range of experience covers startups to public companies, call us to better understand how we can assist you.