Purposes for Valuing a Business

Before preparing any valuation, it is important to determine why the valuation is being performed. Different purposes for valuing a business require varying valuation approaches and methods and may often derive unique values. Valuations are typically classified into one of the following four types of valuations. Within the classifications are samples of the types of valuations that typically fall under each.

  • Transactions
    • Purchases
    • Sales
    • Mergers
    • Buy/sell agreements
    • Business financing
    • Liquidation/reorganization
  • Regulatory
    • Purchase price allocation under FAS 141(R) (FASB Codification ASC 805)
    • Valuation under FAS 142 (FASB Codification ASC 350)
    • Valuation in accordance with FAS 157 (FASB Codification ASC 820)
  • Taxes
    • Estate tax
    • Gift tax
    • ESOPs
    • Charitable contributions
    • Succession planning
  • Litigation
    • Partner/shareholder disputes
    • Divorce
    • Breach of contract
    • Lost business opportunity
    • Antitrust

To see how PFP can help your business today, please contact us at 816.472.0274 or email us at info@pfpkc.com