|
Del
Lingco International offers expertise in the valuation
of closely held corporations, partnerships, professional practices
and proprietorships. We translate the complex technical and legal
aspects of business valuation and economic analysis into documentation
that is understandable and defensible.
WHAT
IS A BUSINESS VALUATION A Del Lingco International business
valuation is an approximate 20 page written report used to determine
the fair market value of a business that a buyer could reasonably
be expected to pay, and a seller could reasonably be expected to
accept, if the business were exposed for sale on the open market
for a reasonable period of time, both buyer and seller being in
possession of the pertinent facts, and neither being under compulsion
to act.
WHY
ARE VALUATIONS DONE
A business valuation may be needed to determine the fair market
value to sell a business, buy a business or a minority interest
in a business, ESOP or key employee stock options, to settle disputes
or estates, to meet lenders demands or to simply keep management
informed as to the worth of the company.
WHAT
INFORMATION IS NEEDED FOR A VALUATION
Del Lingco International uses tax returns and/or financial statements
on the business for up to 5 years, in-depth interviews with the
owners or shareholders, a complete list of all assets and liabilities
and any and all information concerning the business, the overall
health of the industry, and the operating results as well as it's
anticipated growth.
HOW
IS THIS INFORMATION USED The basis of any valuation is
the analysis and the reconstruction of business earnings, the assessment
of current fair market value of the business assets and reasonable
conclusion as to the future viability of the business. As the final
step in the valuation process, the various values as estimated through
application of several different methods of valuation are compared,
factors and circumstances pertinent to each of the individual value
estimates are reviewed, and a final figure or range of figures is
then selected that best represents what is considered to be the
best estimate as to the final value of the business. It should be
noted that of the series of approaches to value that are considered,
some methods and approaches are more useful than others based on
the particulars of the business being valued.
|