FAQ

How does Aspen Valuations determine the value of my business?

The fair market value of your business can be determined by our accredited business valuations experts using one or more of the following approaches to value:

  • The Asset Approach—typically provides a “floor value” for the business appraisal as it presumes that a prudent investor would pay no more/less for a business than its adjusted book value. This approach does not typically recognize or consider the future earning power of the business or goodwill.
  • The Income Approach—values the business based on the future economic benefit of the business attributable to a new buyer. It considers both the return on investment to the buyer as well as the inherent risk associated with that return.
  • The Market Approach—values the business based on the comparison of the subject company to its peer group. This approach is based on the principle of substitution, assuming that a prudent investor would gravitate to the investment of lowest price if all other metrics and risk factors were the same.

You have one opportunity to sell your business. Confirming that you are receiving an equitable price for the business can provide assurance and peace of mind. Also, if the buyer is looking for bank financing, most major banks require a valuation report prepared by a chartered valuator. Our valuation reports meet the standards banks require.

You may need a business valuation for a number of reasons: management planning, financing, divorce, estate planning, succession planning, buy/sell agreement, employee incentives, litigation, or other reasons. A valuation often helps in the management planning process as business owners learn what drives value and ways to increase value.

Many of Aspen’s clients are recurring, meaning they require an updated valuation every one or two years. Business value is determined at a point-in-time. It should be updated as the business’s situation changes and market condition evolves.

  • Sale, merger and acquisition of the business. Negotiating a merger, acquisition, or business sale often involved differences in opinion of value. An experienced valuation professional can assist you in explaining the valuation process and how it should be applied.
  • Tax. You need to determine the value of your business for tax-based transactions such as for gift and estate tax purposes and reorganization of the company’s ownership structure.
  • Litigation purposes such as marital breakdowns or shareholder disputes.
  • Planning such as succession planning or planning for retirement.
  • Strategic opportunities. Knowing an accurate value of the business allows you to take advantage of opportunities such as adding business partners, financing for expansion, allowing key employees to buy company’s shares

Many of Aspen’s clients are recurring, meaning they require an updated valuation every one or two years. Business value is determined at a point-in-time. It should be updated as the business’s situation changes and market condition evolves.

The cost depends on a number of factors specific to the business. Some of these include:

  • The size of the business (i.e. annual sales)
  • The purpose of the valuation and types of valuation reports required
  • The quality of financial and other information
  • The complexity and dispersion of ownership and equity rights

Fill out our Request A Quote form to receive our free estimate.

Once you’ve agreed to engage Aspen, we send you a list of the information we require to value your business. The following are the typically required for most valuations:

  • Financial statements of the business for the last five years (or three)
  • Corporate income tax return for the last five years (or three)
  • Business forecasts or projections, if prepared
  • Access to key management or owner to discuss the operations, financial results and other relevant factors such as competition, suppliers, customers, risks and opportunities of the business

You can put your trust in us for several reasons. Aspen professionals collectively bring more than two decades of business valuation and financial advisory experience to service our clients. Our team members hold several designations in business valuation and financial advisory follow the gold standards prescribed by these professional regulatory bodies. We are accredited by the following organizations:

  • American Institute of Certified Public Accountants (Business Valuation Accreditation or ABV), one of the three major professional bodies that regulate the business valuation profession in the U.S
  • Certified Public  Accountants (CPA)
  • Exit Planning Institute

We understand the sensitive nature of a company’s internal information and treat the information with the utmost confidentiality and care. Information related to our clients is never discussed or released to outside parties without prior authorization. Our internal infrastructure induced high-standard firewall, virus scans and strict employee policies on handling client data.

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