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.

When do I need a business valuation?

Business valuations are needed for many situations including M&A transactions, estate and gift tax planning, partnership disputes, divorce proceedings, employee stock ownership plans (ESOPs), buy-sell agreement funding, fair value reporting under ASC 820, and litigation support. Whether you’re selling a business, planning succession, or facing a legal challenge, our 40+ years of experience ensures accurate valuations for your specific needs.

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.

Cost Approach

Relevant Court Cases

Bolton (US Ct App)

Borgatello (US Tax Ct)

Dunn (US Ct App)

Jelke (US Tax Ct)

Jelke (US Ct App)

Jensen (US Tax Ct)

Litchfield (US Tax Ct)