A detailed valuation report must meet two tests: it must reach a supportable conclusion and it must clearly and convincingly establish how the conclusion was reached. There are two different types of Business Valuations and CDS performs both.
- Calculation Engagement (Calculated Value) – Independence is not required
- Valuation Engagement (Opinion of Value) – Independence is required
Business valuations are most commonly required for?
- Buy/Sell agreements
- Business owner succession planning
- Business planning
- Mergers and acquisitions
- Reverse stock splits
- Leveraged buyouts
- Conversion from a C corporation to S corporate status
- Raising capital
- Viability, capital adequacy, expansions, liquidations and bankruptcy
- Gift and estate taxes
- Charitable contributions
- Employee stock ownership plans (ESOPs)
- Stock options and other incentives
- Restricted securities
- Preferred stock recapitalizations
- Specialized tax matters
