Appraisal and Valuation Practice

Whether a business is considering a major change in direction, such as a sale, acquisition, merger or expansion, or heading into the routine task of gift and estate planning, the worth of the enterprise is a pivotal issue.  After all, a going concern consists of a great deal more than the sum of its tangible assets.  To get a real picture of its value requires attributing a dollar value to its intellectual property, its customer lists, its general goodwill, its market strengths–in short, its overall ability to do business.

Even when the worth of your total enterprise is not at issue, the value of specific assets may be called into question from time to time.  Rights and values for a patent or trademark may be challenged; the lending value of inventory, accounts receivable or machinery and equipment may need to be reevaluated; or the value of assets may be at stake in a purchase and sale transaction.  These specific assets require a thorough understanding and practical application of the various principles and approaches to qualified valuations.

Asset Appraisal and Business Valuation Services

Our sister company, BVA, handles our Asset Appraisal and Business Valuation services when the asset and/or cost approach is fundamental to a valuation conclusion. This team of tangible and intangible asset appraisal professionals can define the scope of your appraisal need, select from among the range of accepted appraisal methods, systematically collect the appropriate facts and render an informed judgment that will allow management to proceed with confidence in the prevailing economic climate. BVA provides asset appraisals for collateral assessment and lending purposes, purchase price allocations, buy-sell transactions, long term asset impairment assessments and other GAAP reporting requirements. All valuation services are performed pursuant to the Uniform Standards of Professional Appraisal Practice, as set forth by the American Society of Appraisers.

Personal Property Ad Valorem Tax Appraisals

BVA regularly provides ad valorem tax appraisals in contested matters between taxpayers and assessors following the statutory definition of value for the jurisdiction in which the personal property is located. Core contested issues in these matters often center around measurement of functional and economic obsolescence, the application of the market approach and the use of the business unit concept for development of the income approach. BVA’s professionals are trained and designated in machinery, equipment, inventory, intangible and business unit appraisal services.

Dissolution Accounting and Valuation

Often times, legal entities and/or asset holdings need to be divided pursuant to a statutory, court supervised or stakeholder agreed process. Corporate dissolutions for limited liability companies and partnerships can involve complex capital account balance and operating/partnership agreement assessments which require forensic accounting review and potential restatement of owners’ account balances due upon dissolutions. Family law dissolution matters commonly require both appraisal services and forensic services. Valuation approaches which assess business/corporate goodwill and personal goodwill can be central issues to determining the value of marital property. Recognizable and accepted methods for tracing funds and property can be foundational to determining separate property compared to marital property. Measuring the enhanced business or investment value to a marital estate as a direct result of spousal contribution by skill, effort or funding involves disaggregation of the change in value during a marriage into the relevant, active and passive drivers of value. DRPA’s and BVA’s professionals are trained in matters of assessing personal/professional goodwill, enhancement to value, and in forensic accounting services including tracing methodologies.

Recent Case Studies

National Home Improvement Supplier – Confidential

Appraiser retained by the controlling shareholder and his counsel to appraise a swing block of stock in a disputed shareholder buyout; the Company is one of the largest national suppliers of home improvement products to Big Box retailers; perform periodic valuations to support the Company acquisitions and fair value reporting; performed other appraisals of stock for estate planning and machinery/equipment appraisal for transactional/lending purposes.

PROFESSIONAL PRACTICE SERVICES

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