A valuation is an objective appraisal of the market value of a business or other asset. Valuations are commonly based on asset value, investment value, or income value. DZH Phillips performs valuations on businesses, and also for the purpose of estate and gift planning. Our team brings the essential qualities of objectivity and integrity so important to the CPA profession, combined with the specialized expertise of staff that hold CVA (Certified Valuation Analyst) credentials.
A business valuation is required in certain circumstances, such as business sales, securing financing, exit and succession planning, divorce, or bankruptcy. In the absence of one of these situations, however, a valuation can be a useful tool for evaluating your business, its market position, and its potential for growth.
DZH Phillips provides professional valuation services to business owners, attorneys and judges, financial consultants, insurance representatives, financial institutions, real estate appraisers, and investment bankers. Our valuation process includes a thorough examination of every aspect of your business: management capabilities; company strengths, weaknesses, and vulnerabilities; historic and projected cash flow; comparable business sales; and the competitive environment and market future.
We provide business valuation services in the following situations:
- Purchase price allocation
- Transfer pricing
- Goodwill impairment studies
- S-Corp conversions
- Buy/Sell agreements
- Fairness & Solvency opinions
- ESOP feasibility studies
- Gift & Estate tax
The information gained from a business valuation often offers benefits beyond its initial purpose and can be a tremendous resource for evaluating and facilitating greater profitability, vision, and strategic direction.
Formal valuations are required for tax filings related to estate and gift transfers. Such transactions can be quite complicated, especially those which involve gifts of closely-held stock, family limited partnerships, or charitable contributions. DZH Phillips provides expert guidance in navigating these situations. Our valuation team is experienced in working to the IRS’ regulations regarding estate and gift tax.
In addition to meeting tax requirements, valuation is a critical component of proper estate planning. An estimation of the value of the assets that ultimately will be transferred to your estate will help you project your estate’s gross value and estate tax.