Business valuation is simply the process of determining the economic value of a business interest. You could think of it a bit like an appraisal on your house, but instead of looking at things like square footage and nearby sales trends, we look at the financial performance of the business, as well as comparable benchmarks for businesses that have sold. Valuation can be an important part of your journey, all the way from initial startup and capital formation to your exit from the business. Understanding the value of your business can help you make a variety of strategic decisions. There are also some situations in which a business valuation might be a requirement.
Blue Owl Valuation was launched by doing valuation engagements for banks engaged in SBA 7(a) acquisition lending. Over the last decade, we have added to our repertoire. We do valuations for a wide variety of purposes and uses, including succession planning, 409(A) valuations, litigation support for divorce and shareholder dissent cases, estate and gift tax, ROBS plans, and more.
Though it may seem odd to think about it this way, business valuation requires quite a bit of judgment on the part of the analyst. If you give the same information to five different analysts, you may get five different results. At Blue Owl Valuation, we do our best to understand your specific purpose and use so that we can provide the most accurate and useful analysis for your situation. According to IRS Revenue Ruling 59-60, understanding the Fair Market Value of a business can involve a wide variety of factors ranging from financial performance to the macroeconomic landscape. We strive to take it all into consideration to help you meet your specific needs.
Valuations for SBA lending purposes are usually turned in a week or less. For some purposes and uses, the process may take ten days to two weeks. At Blue Owl Valuation, we tend to utilize technology reasonably well and we strive for maximum efficiency and fast turn times.
We have been in business for more than 10 years (since January of 2014) and we have completed more that 1500 business valuations for a wide variety of purposes and uses. Our analysts hold the CVA credential.
We can help you understand Fair Market Value (FMV). Whether or not you can actually get it might depend on the marketplace. FMV is a value for a "hypothetical, financial" buyer. What we've learned over the years is that, in the real world, there are no hypotheticals. Sometimes a business can sell for more than FMV if that business is desired by a strategic, synergistic partner. Sometimes a business might sell for less than FMV if the owner is pressed for time or facing some other situation where they are obviously motivated to sell.
Certainly. Be advised that our conversations with your attorney may be privileged. Conversations with you are likely not protected. My advice would be for you to have your attorney reach out as the engaging party for a valuation. Divorce can be a challenging and traumatic experience for all parties. We understand this and we would like to see a resolution that works for you.
Certainly. Often, it might be best for you to have your accountant reach out so we can make sure we understand the specifics of what might be needed.
We have worked on many shareholder disputes. It would be highly unusual for us to complete a valuation and magically have all parties agree. However, we have had some success in helping our clients understand Fair Market Value (FMV) in a way that moves the discussion forward.
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Sometimes it is, but sometimes it might not be worth it. We are happy to discuss your specific situation with you. We are known for talking people out of doing unneeded valuations!