Our Approach to Valuing Your Business
Most business owners are interested in knowing what their business is worth and realize it is imperative to have that information if planning for a business succession or sale. Yet, few are aware of the systematic approach that an Orange County business attorney employs to conduct such a valuation.
Orange County Business Attorney Explains Initial Considerations
No matter what the business ultimately sells for, there are some matters to be aware of prior to any valuation. Among these an Orange County business attorney will explain include:
- How much will the sale of the business provide for retirement?
- What affect will the sale of the business have on exposure to estate tax?
- Is life insurance adequate?
- How is the value of the business to be determined? Which method is to be employed? Should the valuation be conducted by an independent third party?
Team Approach
Any analysis of a business for valuation and to provide strategic recommendations to improve profitability requires industry-specific knowledge. As a leading Orange County business lawyer, Hogan Law has developed an extensive network of industry partners to assist us in assessing any type of business. We count among our colleagues:
- Business management consultants
- Exit strategy professionals
- Commercial appraisers
- Certified public accountants
- Attorneys of varying specialties
Getting Started
It is necessary to have a complete picture of the business in order to reach an accurate valuation. To facilitate the analysis, the business owner should provide up to date documentation in the form of:
- Strategic or business plan
- Marketing plan
- Income tax returns
- Audited financial statements
- Accounts receivable report
- Loans payable
- Pension obligations
- Leases for buildings and equipment
- Employee and payroll data
- Executive compensation agreements
- Partnership agreement
- Buy-sell agreement
Multiple Valuation Methods
Hogan Law typically employs more than one method to value a business, believing this approach provides a more accurate representation of a company’s worth. Among the methods we typically employ are asset-based valuation, the revenue multiple, comparable firm transactions and discounted cash flow.
Contact an Orange County Business Attorney for Legal Advice
Specializing in privately held companies with annual revenues between $10 and $100 million, we can help you raise your valuation process with proper planning. Call the Hogan Law Group, PC, at (877) 302-7759.
