Barrett Valuation Services, Inc.
What is my business worth?
When and why do I need to determine a value for my business?
What is a business valuation report and what type do I need?
This is an important question for most owners of a closely-held business. Value of a closely-held business is not easily determined as there are numerous factors that can impact a business' value. Each business is unique and no public market exists for the shares of the business. Valuation is not an exact science whereby a given formula can be applied to a set of data and conclusive results determined. The informed judgment of the professional must be inherent in the valuation process. A systematic, professionally prepared business valuation report can provide objective guidance in answering these critical questions.
Barrett Valuation Services, Inc. takes special care to understand the unique needs of each of our clients and design custom solutions that exceed expectations. We are proud of the work we do and would like to share our insights about business valuation.
You may need to determine the value of your business for a variety of important reasons:
- Do you need a valuation for a shareholder buy/sell agreement, or is an existing agreement's method of determining business value out of date?
- Are you interested in selling the business - or selling an interest?
- Do you want to transfer/gift company shares to heirs or others?
- Is there an estate planning situation that requires a determination of business value?
- Is the company electing Sub-chapter 'S' status?
- Are the company shareholders interested in value-based planning, and do they need business-valuation models to guide planning efforts?
- Are you involved in a shareholder dispute, marital dissolution, or other litigation where business valuation is critically important?
Valuation engagements range from informal to very formal depending on the purpose of the valuation and its intended use. The circumstances of each situation will dictate the level of formality and type of report required. A formal valuation report is a comprehensive document which includes a definition of the valuation assignment, financial and economic analysis, an explanation of the appropriate valuation methodologies, and a reconciliation of the value estimates along with conclusions regarding value.
Who is qualified to do a business valuation report?
Many professionals (consultants, lawyers, accountants) provide business valuation services. John E. Barrett, Jr., is a Certified Public Accountant Accredited in Business Valuation by the American Institute of Certified Public Accountants (AICPA), a Certified Valuation Analyst certified by the National Association of Certified Valuators and Analysts (NACVA), a Certified Business Appraiser certified by the Institute of Business Appraisers (IBA), and an associate member of the American Society of Appraisers (ASA).
Barrett Valuation Services, Inc. subscribes to the highest professional standards developed and published by the Appraisal Foundation with its Uniform Standards of Professional Appraisal Practice (USPAP). BVS subscribes to the business valuation standards of the American Institute of Certified Public Accountants, the National Association of Certified Valuators and Analysts, the Institute of Business Appraisers, and the American Society of Appraisers. These highly respected organizations are recognized as being the leaders in the field of business valuations. Our adherence to these standards demonstrates a commitment to providing the client with a well-developed value conclusion that is supportable and credible.
What benefits do I get from working with Barrett Valuation Services?
BVS can benefit our clients in the following ways:
- Assess the valuation factors that impact the value of a closely-held business.
- Provide unique insight into the valuation process.
- Offer a systematic, professional approach to determine business value and provide a high-quality final report.
- Employ our expertise to solve your particular valuation problem.
Barrett Valuation Services, Inc. | 989 Reservoir Avenue, Cranston, RI 02910 | (401) 942-3900 (P) | (401 942-3988 (F) | firstname.lastname@example.org
Internal Revenue Service requirements for qualified appraisals and qualified appraisers:
IRS Section 170 (f)(11)(E) Qualified appraisal and appraiser. For purpose of this paragraph -
(i) Qualified appraisal. The term "qualified appraisal" means, with respect to any property, an appraisal of such property which -
(I) is treated for purpose of this paragraph as a qualified appraisal under regulations or other guidance prescribed by the Secretary, and
(II) is conducted by a qualified appraiser in accordance with generally accepted appraisal standards and any regulations or other guidance prescribed under subclause (I).
(ii) Qualified appraiser. Expect as provided in clause (iii), the term "qualified appraiser" means an individual who -
(I) has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations prescribed by the Secretary,
(II) regularly performs appraisals for which the individual receives compensation, and
(III) meets such other requirements as may be prescribed by the Secretary in regulations or other guidance.
Whether you need a comprehensive business valuation for Rhode Island divorce purposes, a Rhode Island shareholder dispute, Massachusetts divorce purposes, a Massachusetts shareholder dispute, estate and gift planning purposes, or other reasons, BVS can guide you through the process.
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