What is a business valuation?

A business valuation is a comprehensive professional analysis that determines the economic value of a business or enterprise. Using proven methodologies including the income approach, market approach, and asset-based approach, our ASA-designated valuators assess financial performance, market conditions, and industry trends to provide accurate valuations for transaction support, financial reporting, litigation, and strategic planning purposes.

How long does a business valuation take?

Valuation timelines vary based on complexity, data availability, and industry specifics. Typically, standard business valuations require 4-8 weeks from initial engagement. Expedited valuations for time-sensitive transactions are available. Our team maintains efficiency through proven processes while ensuring thorough analysis of financial records, industry comparables, and market conditions to deliver defensible conclusions.

How much does a business valuation cost?

Engagement fees depend on scope. Current ranges are on our fees page at https://www.corpval.com/business-valuation-fees-pricing/.

What methods are used in business valuation?

Professional business valuations employ three primary approaches: the Income Approach (analyzing cash flows and earnings to determine value based on future earning potential), the Market Approach (comparing your business to similar transactions and public company multiples), and the Asset-Based Approach (evaluating net asset value). Our ASA-designated valuators select the most appropriate methodology or combination of methods based on business type, industry standards, and engagement purpose.

What is an ASA designation?

ASA (American Society of Appraisers) designates business valuators who have met rigorous professional standards including education requirements, practical valuation experience, ethical standards compliance, and ongoing continuing education. Our team includes ASA-designated professionals, ensuring valuations are prepared by experts who meet the highest industry standards and are recognized by courts, IRS, and regulatory bodies as meeting USPAP (Uniform Standards of Professional Appraisal Practice).

What is the difference between fair market value and fair value?

Fair Market Value (FMV) represents the price at which property would change hands between a willing buyer and willing seller, neither under pressure and both having reasonable knowledge. Fair Value, as defined by ASC 820 for financial reporting, reflects the price that would be received to sell an asset in an orderly transaction. While similar in concept, application differs by context—FMV is typically used for tax purposes while Fair Value is standard for financial statement reporting.

Do you provide valuations nationwide?

Yes, we provide comprehensive business valuation services nationwide to businesses of all sizes and across diverse industries. Our experienced team has completed over 1,000 valuations across the United States, developing deep expertise in regional and national market conditions. Whether your business is locally-based or multi-state, we bring the market knowledge and professional credentials needed to deliver accurate, defensible valuations.

What industries do you specialize in?

We specialize in valuations across eight major industries: Closely-Held & Family Businesses, Manufacturing & Industrial, Healthcare & Medical, Technology & Software, Real Estate & Hospitality, Financial Services, Retail & Distribution, and Professional Services. Our industry-specific expertise enables us to understand unique factors affecting valuation in each sector, from regulatory requirements to competitive dynamics and cash flow characteristics.

What documents do I need to provide?

Typical documentation includes 3-5 years of audited or reviewed financial statements, tax returns, business operating agreements, customer and supplier lists, lease agreements, and contracts. Additional items may include organizational structure details, management bios, industry reports, and relevant regulatory documentation. We provide a detailed document checklist at engagement and work with you to gather necessary information efficiently to ensure comprehensive and accurate valuation analysis.

Will the valuation hold up in court?

Our valuations are prepared to withstand judicial scrutiny and follow USPAP standards, making them defensible in litigation, arbitration, and regulatory proceedings. With 40+ years of experience and ASA-designated valuators, we provide detailed support documentation, transparent methodology explanations, and expert witness testimony when required. Our rigorous approach to valuation analysis ensures conclusions are well-reasoned and supportable under professional and legal standards.

Do you provide expert witness testimony?

Yes, we provide expert witness services for litigation, arbitration, and mediation proceedings. Our ASA-designated professionals are experienced in presenting valuation analyses to judges, juries, and arbitrators. We prepare clear, compelling testimony and supporting materials that explain valuation methodology, comparable analyses, and conclusions in terms that non-technical audiences understand while maintaining professional rigor and credibility.

What is an ESOP valuation?

An ESOP (Employee Stock Ownership Plan) valuation determines fair value for company stock in employee ownership transactions. These specialized valuations ensure equitable pricing for both the company and participating employees and must comply with ERISA regulations. Our valuators bring expertise in ESOP structuring, tax implications, and regulatory requirements to provide valuations that support successful employee ownership transitions and ongoing plan administration.

How often should I get a business valuation?

Annual valuations are common for ESOP trustees and for financial reporting. A new valuation is also warranted for a gift or estate transfer, a divorce, or another significant event.

Marital Dissolution & Divorce Valuations

Business valuation for divorce: marital estates, closely held companies, and personal vs enterprise goodwill.

Why Professional Business Valuation Matters

Corporate Valuations Inc. is a nationwide business valuation firm. From our Portland office we work with family-law counsel across the United States on closely held companies and professional practices that sit in a marital estate.

A divorce appraisal is often the difference between a settlement and a fight over the largest non-home asset. The job is to value the interest as of the legally specified date, under the standard the forum uses, and to separate what is the business from what is the person. We have prepared these appraisals since 1983. Principals Blake J. Runckel, ASA, CFA, and Cary M. Carruthers are retained as a mutually agreed neutral or by one party. Call 503-235-7777. For shareholder and commercial disputes, use litigation support.

State Law Considerations

The legal framework governing property division in divorce varies significantly by state. Understanding whether your jurisdiction applies community property or equitable distribution principles is essential to developing an appropriate valuation strategy. Corporate Valuations Inc. has experience across multiple states and understands how different legal standards impact business valuations in marital dissolution cases.

Community Property States

Washington — Community property law governs property division, meaning property acquired during the marriage is presumed to be community property subject to equal division. Business valuations must carefully distinguish between value attributable to marital efforts versus pre-marital foundation, and must support an equitable allocation of the business interest between the spouses.

California — As a community property state, California presumes all property acquired during marriage is community property. Valuators must segregate community property gains from separate property portions, particularly when a business existed before marriage. Goodwill valuation is subject to specific California standards, and valuators must account for both tangible and intangible value attributable to community efforts.

Texas — Texas community property law treats most property acquired during marriage as community property subject to a “just and right” division rather than mandatory equal division. Business valuations must establish fair market value and quantify the community property portion, taking into account any separate property components and the degree to which business value increased due to community efforts.

Idaho — Idaho community property law presumes property acquired during marriage is community property. Valuators must determine the fair market value of business interests and allocate value between separate and community property portions. Idaho courts recognize the distinction between personal goodwill and enterprise goodwill, with implications for how value is characterized and divided.

Nevada — Nevada community property law applies to property acquired during marriage, with exceptions for property acquired through gift, bequest, or inheritance. Valuations must establish fair market value and segregate community from separate property. Nevada courts give particular attention to whether business value should be attributed to personal services versus enterprise value.

Arizona — Arizona community property law presumes property acquired during marriage is community property. Valuations must address the full fair market value of the business and allocate it between community and separate property. Arizona courts recognize the concept of personal goodwill and expect valuators to provide detailed analysis distinguishing personal from enterprise goodwill.

Discuss Your Valuation Needs

Call 503-235-7777 or request a fee estimate online. We respond within 48 hours.

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Equitable Distribution States

Oregon — Oregon applies equitable distribution principles, meaning marital property is divided fairly rather than automatically equally. Valuations must establish fair market value as of the valuation date and characterize property as marital or non-marital based on when acquired and how funded. Oregon valuators must address the degree to which business value is attributable to marital efforts, including contributions by both spouses. Personal versus enterprise goodwill is a recurring Oregon issue in professional-practice cases. We apply the law of the forum as counsel frames it. Related notes are at business valuation for divorce cases.

New York — New York equitable distribution law requires that marital property be divided fairly considering multiple statutory factors. Business valuations must establish fair market value, and valuators must segregate value attributable to marital versus non-marital periods. New York courts carefully scrutinize personal goodwill valuations and generally do not award personal goodwill to the non-owning spouse.

Illinois — Illinois equitable distribution law applies to marital property, requiring valuators to establish fair market value and address growth attributable to marital versus non-marital contributions. Illinois courts recognize the significance of personal goodwill valuations in professional practices and require clear economic support for goodwill conclusions.

Florida — Florida equitable distribution law requires that valuations distinguish marital from non-marital property. Valuators must determine the fair market value of business interests and address value increases due to marital efforts. Florida courts give careful consideration to the personal services and reputation components of professional practices.

Colorado — Colorado equitable distribution law requires fair division of marital property. Valuations must establish fair market value and segregate marital from non-marital portions. Colorado valuators must address contributions of both spouses to business success, including marital efforts that enhanced value even if not directly business-related.

Personal Goodwill vs. Enterprise Goodwill

The split between personal and enterprise goodwill depends on the facts of the practice and on the law of the forum. We analyze it in the report as counsel frames the issue. We do not treat any one case as the last word. We are not a substitute for family-law advice.

Personal Goodwill

Personal goodwill represents the value attributable to the individual owner’s skill, reputation, personal relationships, and professional standing. In service-based businesses such as medical practices, law firms, and consulting firms, a substantial portion of business value may be attributed to the owner’s personal reputation. Many jurisdictions treat personal goodwill as non-marital property because it is inherent to the individual and cannot be transferred. Our analysis uses comparative industry analysis, client concentration studies, and financial performance metrics to support defensible personal goodwill allocations.

Enterprise Goodwill

Enterprise goodwill represents the value of the business as an entity, independent of any individual owner. This includes established systems, processes, brand recognition, customer relationships not dependent on the owner, and operational efficiency. Enterprise goodwill is typically considered marital property subject to division. Our valuators carefully distinguish enterprise goodwill from personal goodwill using industry standards and comparable transaction analysis, providing detailed analysis that withstands expert cross-examination.

Key Valuation Issues in Divorce

Several critical valuation issues are specific to business valuations in marital dissolution. Understanding and properly addressing these issues significantly impacts the fairness and defensibility of a valuation.

Standard of Value

The standard of value defines what a business interest is worth—whether fair market value, investment value, or another standard. Different jurisdictions may require different standards. Fair market value is most commonly applied in divorce cases, but valuators must ensure the standard selected is appropriate for the jurisdiction and consistent with the legal framework governing the case.

Valuation Date

The date at which the business is valued is critical because business value fluctuates over time. In most jurisdictions, the valuation date is the date the divorce petition is filed, the date of separation, or another legally specified date. Valuators must use the legally specified valuation date and clearly document how economic conditions, business performance, and other factors as of that date impact the valuation.

Double-Dipping and Excess Earnings

Double-dipping occurs when the same earnings are allocated to both a spouse’s income for support calculations and the business valuation for property division. Courts and valuators must carefully avoid this error. If the business valuation includes a premium for earnings above reasonable owner compensation, those excess earnings should not simultaneously be counted as personal income for support calculations. Our valuations include careful analysis of reasonable owner compensation and clearly document how excess earnings are treated.

Active vs. Passive Appreciation

Business value may increase through active efforts of the spouse (growing the business, developing new markets, improving operations) or passive appreciation (market conditions, inflation, general economic growth). In equitable distribution jurisdictions, courts often distinguish between these types of appreciation when determining what portion is marital property. Active appreciation is typically marital property, while passive appreciation may be treated differently. Our valuators analyze the drivers of value growth and document the extent to which appreciation resulted from active efforts versus market conditions.

Expert Testimony & Trial Support

Corporate Valuations Inc. supports marital dissolution from the first analysis through settlement and trial testimony. Blake J. Runckel, ASA, CFA, is often retained as a mutually agreed neutral; we also prepare work for one party when that is the engagement. Report and testimony requirements overlap our litigation support practice.

Comprehensive business valuation reports prepared in compliance with professional valuation standards
Detailed analysis addressing jurisdiction-specific legal standards for property division
Goodwill analysis distinguishing personal goodwill from enterprise value
Characterization of marital versus non-marital property with supporting financial analysis
Reasonable owner compensation analysis to avoid double-dipping issues
Sensitivity analysis showing how valuation changes with different assumptions
Rebuttal report preparation responding to opposing expert valuations
Deposition preparation and testimony
Expert witness trial testimony with clear explanation of methodology and conclusions
Mediation and settlement support with objective valuation analysis
Consultation with attorneys regarding valuation strategy and legal implications

Divorce Valuation FAQs

When do I need a business valuation for divorce?

When a closely held or professional-practice interest is a meaningful marital asset. Courts and settlement talks need a supportable value as of the legally specified date, not a rule-of-thumb multiple.

What is the difference between personal and enterprise goodwill?

Personal goodwill is value tied to the owner’s skill, reputation, and relationships. Enterprise goodwill is value in the business itself — systems, brand, and transferable customers. Many jurisdictions treat those components differently for property division.

How does Oregon treat goodwill in a divorce?

Oregon is an equitable-distribution state. Personal versus enterprise goodwill comes up often in professional-practice cases. We apply the law of the forum in the appraisal. We are not a substitute for family-law counsel.

Should we hire a neutral appraiser or separate experts?

A mutually retained neutral can speed settlement when both sides will accept one opinion. Separate experts are more common when goodwill, the valuation date, or compensation is already contested. Blake J. Runckel, ASA, CFA, is often retained as a neutral; we also prepare work for one party when that is the engagement.

Is the report used for settlement or for trial?

Either. Many divorce business appraisals resolve in settlement or mediation. If the case is tried, the same analysis has to be ready for deposition and testimony. Scope is set up front so the report matches how counsel expects to use it.

Protect Your Interests in Marital Dissolution

Whether you’re working with family law counsel or preparing for litigation, our expert valuations provide the clarity and credibility you need for an equitable settlement. Contact us to discuss your marital dissolution valuation needs.

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