Business Valuation

Knowing the value of your business is important, and no two businesses are identical. For business, tax and personal reasons, establishing your business valuation is critical. Whether you’re selling your business or facing a divorce, you want an accurate valuation.  A business that is overvalued could mean paying too much for it or incurring excessive taxes. An undervalued business results in selling too low or incurring unforeseen costs due to an audit. We can provide your business with an objective, professional business valuation.

We offer a range of valuation services to minimize the cost and yet achieve your goal.
Here is a brief description starting with the most basic service and moving to the more complex:

Calculation Engagement
A basic business valuation estimate based on market comparables and cash flows. This engagement includes an oral report supported by work papers. (This report will not stand alone, so to speak.) These are perfect to simply get a feel for the value of a company and should be used for planning purposes only. This report is often used for determining an asking price for a business.

Limited Scope Engagement
A basic business valuation estimate based on market comparables and cash flows.  This engagement includes a limited scope basic report.  (Some narrative and all of the supporting analysis) This report may include a detailed industry analysis depending on the industry, but often does not. This report typically needs some oral explanation. The use of this report is more versatile in that it can be used as a stepping stone into a more detailed report. Sometimes we use this for clients that are unsure as to whether they should pursue litigation or for disputes where alternative dispute resolution is the goal.  (i.e. not litigation)

Full Scope Engagement
This engagement includes a full business valuation analysis, report and opinion. This comprehensive report and analysis is required for gifting and estate tax returns and recommended for contested litigation. 

Full Scope Engagement with Forensic Review
This is exactly the same as the full scope engagement, but it includes a forensic review.  These engagements are useful in contested litigation where there is suspicion of impropriety. Often we will perform an initial forensic review just to see if a more detailed study is warranted.

Consulting on Value Drivers
Additionally, Donovan, Klimczak & Company can help you determine what will increase your business value – your value drivers – and how to achieve that goal.
This type of engagement is useful for a long-term view to maximize the value of the business and prepare for the eventual sale of the business.

Other services of Donovan, Klimczak & Company

· Accounting & Auditing
· Business Consulting
· Business Valuation
· International Taxation
· Tax Planning and Compliance
· Wealth Management

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