Valuation & Litigation Advisory Blog

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

• Smooth Sailing How to Make Sure Your Business Valuation Engagement Runs Smoothly
• Valuing a Business With Significant Real Estate Assets
• Marketability Discounts for Controlling Interests?

Smooth Sailing: How to Make Sure Your Business Valuation Engagement Runs Smoothly

We have all had to tackle tasks that just seem to grind and clunk along without much direction or urgency, which can be frustrating for all of the parties involved.  The same can be true for business valuations – some engagements may stretch on for months or years for various reasons.  In order to avoid these headaches (and the potentially increased fees as a result of the valuation expert having to pick up and put down the project multiple times), the party engaging the valuation expert and those involved with the valuation process at the company should adhere to these five points.

Valuing a business with significant real estate assets

Often, a business’s value is closely linked to the value of its real estate. If that’s the case, a valuation approach that yields separate values for the business and the real estate may produce more accurate results. This article explains the impact of real estate on business value and the methodology involved in separate valuations.

Marketability discounts for controlling interests?

Discounts for lack of marketability are well established when valuing minority interests in closely held businesses, but using marketability discounts for controlling interests is controversial. This article discusses the arguments made by both proponents and critics, and notes that, if a marketability discount for a controlling interest is an issue, it’s important to work with a valuation expert to be prepared to support or, if appropriate, challenge application of the discount.

Prior issues are available in the E-Newsletter Archive of our Valuation & Litigation Advisory Services Resource Center. If you would like to subscribe to this free, monthly, business valuation and litigation support e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.