Understanding the value of a business is critical to a business owner in many circumstances. However, it can be difficult to ascertain the market value of a privately-held business. Rippe & Kingston’s Business Valuations Services can help business owners by providing accurate and objective valuations.
 
The Function of Valuations
The need for a valuation is so widespread; no two valuations are ever exactly alike. Owners need to know the value of their business for:

• Succession Planning
  
• Mergers, Acquisitions and Divestitures
  
• Tax and Estate Planning
  
• Banking Covenants
  
• Litigation: Civil, Domestic or Divorce Issues
  
• Allocation of Goodwill
  
• Arbitration
  
• Buy-Sell Agreements
  
• Corporate or Partnership Dissolution or Recapitalization
  
• ESOP Funding

Using Traditional Approaches
The three valuation approaches described below are typically used to derive a business’ worth:
The Asset Approach - determining the value of a business based upon the value of its tangible and intangible assets
The Market Approach - determining the value of a business by comparing it to prior transactions involving similar businesses
The Income Approach - determining the value of a business by evaluating past, present and future income streams

The Valuation Process
Definition of Valuation Purpose - determining the scope of the project and what is to be achieved by the engagement
Information Gathering - researching and isolating relevant facts
Analysis - evaluating past financial performance, the business' industry and applicable non-financial information
Reporting - preparing a detailed report containing a reliable estimate of the business' market value and explaining how it was ascertained

Rippe & Kingston is a member of the National Association of Certified Valuation Analysts and has Certified Valuation Analysts (CVA’s) on staff.

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