Valuation is needed whenever you sell your business, or you acquire a business. Valuation is also needed for various tax purposes, e.g., to value shares given or received as gifts or inherited, or to value stock options or stock grants. Valuation is also required for various accounting purposes, e.g., valuation of goodwill or other intangible assets, or for fairness opinions. Regardless of the size of your business you will encounter the need for valuation services.
When you need these services, you should never settle for the hands-off approach of a large accounting firm or a large valuation firm. You need a firm that can not only provide valuation services but can also provide you with advice on tax and accounting requirements that necessitated the valuation in the first place. To learn more about the valuation services offered by Valuation Specialists, Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing, call (800) 681-1295 or book online to schedule a reduced rate initial consultation today.
Types of Business Valuation Services
The practice of business valuation encompasses a wide swathe of specific services that are tailored to the needs of the client. Below are just a few of the commonly utilized business valuation services that the Tax Law Offices of David W. Klasing can provide to you.
Valuation of Business Interests
Valuation of business interests is important whenever material changes in structure or ownership of a business is being contemplated. Some examples of valuation of business interests include valuations of securities or other interests in government entities, fair value assessments, or accounting practices in accordance with actions taken by regulatory authorities.
Intangible Asset Valuation
Intangible asset valuation is geared towards assessing the assets, liabilities, or intellectual property where transaction planning or tax reporting is concerned. Intangible asset evaluation will also come into play in the purchase or sale of these assets, licensing, securing financing or refinancing options, and dispute resolution purposes, to name a few.
Fairness opinions involve the provision of a report, generally to a Board of Directors, deliberating the purchase or sale of assets or business interests. There is usually a presumption that the Board of Directors will rely on the fairness opinion in reaching its conclusions on proceeding with or completing a transaction. There is also a presumption that other third parties would need to have access to the fairness opinion or that the reference to the fairness opinion report may be needed in publications or filings available to the public.
Fair Value Studies
“Fair value” type reports include a broad category of valuation-based services usually provided in connection with requirements arising during the purchase, sale or transfer of assets or interests or as a result of contractual, governmental, regulatory, or statutory requirements such as disclosures in financial statements as stipulated by the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and national regulatory bodies. As a result, assets and liabilities need to be analyzed from a fair value perspective. These services include estimating value required under contracts between parties or arising from disputes, as well as valuation analyses related to tax mitigation or tax planning.
An impairment test is a function of accounting that is meant to determine whether an asset is impaired. An asset is impaired if the economic benefits that the asset embodies have diminished drastically. Under generally accepted accounting practices (GAAP), if the carrying value of an asset exceeds the sum of undiscounted expected cash flows of an asset, the asset is impaired. The impairment expense is different from depreciation or amortization. It represents a non-continuous adjustment made only as required.
Share-Based Payment Valuation
A share-based payment is a transaction in which the entity receives goods or services either as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the entity's shares or other equity instruments of the entity. The accounting requirements for the share-based payment depend on how the transaction will be settled, that is, by the issuance of equity, cash, or a combination of the two.
Why Use the Tax Law Offices of David W. Klasing for Your Valuation Needs?
When choosing a service provider for your valuation needs, you should take several factors into account. Not all the benefits you may seek will be provided by every law or public accounting firm.
Going with a large law or accounting firm may not provide you with the personalized and dedicated attention that your business, estate planning and other valuation needs deserve. These large operations are geared towards larger projects with companies that do not require a personal touch for their day-to-day operations. By choosing a boutique law and accounting firm that values your business, you can ensure that your needs will be met, and your voice will be heard throughout the process.
You also need a firm that will not only provide valuation services but stands ready willing and able to also provide you with related relevant and timely counsel on the legal, tax and accounting ramifications of your transaction that necessitated the valuation in the first place. You can benefit greatly by forming an ongoing relationship with our firm on your ongoing business law, tax planning and compliance and accounting needs. It is often the case that your need for valuation services may continue through to your business and personal future endeavors. If and when new issues develop in the future, you will want business, tax and accounting assistance from a firm that is already familiar with your situation.
Nowhere is this more relevant than in situations where legal ramifications come into play. An accountant may be able to help you prepare tax documents and engage in other tax strategies, but if you are faced with lawsuit, audit or state or federal tax investigation, you will want a seasoned dual licensed Tax Attorney & CPA to assist you through the process. Attorneys also enjoy more protective communication and work product privileges than regular accountants, meaning that you will not have to be as concerned about your communications with your dual licensed Tax Attorney & CPA coming back to haunt you in a court room.
Lastly, if there are any international implications of your valuation needs, look no further than the dually licensed International Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing. We have decades of experience in international taxation that dovetail perfectly with our valuation services.
The Tax Law Offices of David W. Klasing Can Help with Your Business Valuation Needs
If you find yourself in need of personalized and efficient business valuation services, call the Tax Law Offices of David W. Klasing to schedule a reduced-rate case evaluation today at (800) 681-1295 or schedule online here.