Any organization seeking to establish value for (among many possible reasons):
- Estate, inheritance or gift tax
- Mergers, acquisitions and spin-offs
- Succession and transaction planning
- Cross-purchase and buy-sell agreements
- Values-based planning
- Employee stock ownership plans
- Litigation (such as divorce or domestic dispute)
- Minority shareholder interests
- Subchapter S elections
- Charitable contributions
- Personal financial statements
- Issuing stock
Establish a clear value for an organization through an objective third party
Protect both buyers and sellers of organizations in transition
Avoid business value being set by the IRS, which could result in owing additional taxes
Meet regulatory requirements
Help families set the value of a family-owned business
How AGH's business valuation service can help
AGH’s corporate finance and business valuation specialists possess the credentials and experience that regulatory and taxing authorities respect in order to deliver a valid and defensible business valuation in case of challenge to the valuation. AGH has one of the region's most experienced staff of professional, accredited business appraisers with the industry's highest credentials.
AGH’s team members have the credentials and certifications recognized as industry standards. The appraiser’s work must comply with Uniform Standards for Professional Appraisal Practice (USPAP), Statement on Standards for Valuation Services (SSVS), Internal Revenue Service (IRS) rulings, and GAAP. Each of the following four credentials signify that the appraiser has met rigorous standards for knowledge and experience and that a comprehensive review of his or her work met required business valuation and documentation standards.
- Certified Valuation Analyst (CVA) certification from the National Association of Certified Valuation Analysts – granted only to individuals who are already certified public accountants (CPAs)
- Accredited in Business Valuation (ABV) designation from the American Institute of Certified Public Accountants (AICPA) – granted only to individuals who are already CPAs
- Certified Business Appraiser (CBA) certification from the Institute of Business Appraisers
- Accredited Senior Appraiser (ASA) designation from the American Society of Appraisers
Depth of appraiser resources and continuity
In addition to credentialing, AGH delivers other important advantages. AGH’s team offers multiple credentialed professionals who can assist if a valuation is contested in the future. Valuations are only as good as the professionals backing them up. Furthermore, the collaboration between professionals results in more defensible reports. AGH has conducted business valuation engagements for more than 20 years, and has had multiple credentialed business valuation professionals on staff for more than 10 years. The firm is committed to maintaining an ongoing, multiple-professional business valuation service now and into the future. Because of the inherent subjectivity in the valuation process, it is common for the IRS or other involved parties to challenge those valuations that might favor the client. Accordingly, it’s important that the firm providing the business valuation always be prepared to support its work.
In addition to their valuation credentials, valuation professionals can deliver a more accurate appraisal if they have relevant industry experience. Because our professionals have all worked extensively with closely held and family businesses across most industries, AGH brings unique expertise to bear for your valuation work.
Frequently asked questions
Why should I hire an accredited valuator to value my business when I have a CPA?
There are multiple reasons to hire an accredited valuator. The IRS, courts, and SBA will not accept a valuation not prepared by an accredited valuator. An accredited valuator's credentials are based on continuing education, an exam, and consistently acquiring experience in the area. If you are seeking a business valuation as part of exit planning, you only get one shot and should hire an experienced professional who can maximize your business' value.
Is a valuation just applying a multiple to EBITDA?
No. Stated or reported earnings before interest, taxes, depreciation, and amortization (EBITDA) must be adjusted to eliminate one-time, non-recurring, extraordinary, non-operating, or out-of-market related party income or expense items.