Multi-Channel Calculation of Business Value

Business value is a range of reasonable values, not a specific number.  Our multi-channel calculation of business value is specifically designed for Exit Planning purposes.  It provides you with multiple possible values for your business allowing you to understand the impact of your full range of exit options.  The following chart illustrates how values can differ based on exit channel.

IRS Value - Used in estate tax planning and transfers to insiders under IRS guidelines.

Best Market Value - Best possible market value based on comparable market sales data.

Negotiated Value - Value under a buy-sell agreement or other negotiated agreement.

Investor Value - The amount a prudent investor should be willing to pay.

A Multi-Channel Calculation of Business Value provides multiple values.  As you can see, business valuation for financial planning purposes is not a single number.  These values are key to fully address your financial planning and to explore all of your exit options.

After preparing a Multi-Channel Valuation we can consult with you on how value is viewed by each of these authorities and help you to understand how to best improve the value of your business in the eyes of potential buyers and independent valuation analysts.  We can help you to create and implement a plan to improve and make that value visible.

Note:  Our valuations are prepared in accordance with Statements on Standards for Valuation Services #1 issued by the AICPA and Valuation Standards provided by the NACVA.  The valuations are prepared by Thomas M. Griffiths, CPA, Accredited & Certified Business Valuation Analyst (ABV / CVA).