Business Valuation Services

Business valuation services determine the economic value of businesses or business interests for purposes including mergers and acquisitions, estate and gift tax planning, partner buyouts, divorce settlements, financial reporting, or litigation support.

Professional valuations require specialized expertise applying accepted methodologies and professional standards.

Successful valuation professionals often specialize by industry (manufacturing, professional services, healthcare), business size, or purpose (M&A, tax, litigation).

The business model charges project-based fees typically ranging from $5,000-50,000+ depending on company complexity, valuation purpose, and depth required, with simpler valuations for small businesses at lower end and complex valuations for litigation or large companies at higher end.

Some professionals also provide hourly consulting at $200-500+.

Services include full business valuations, limited scope valuations, fairness opinions, solvency opinions, purchase price allocations, intangible asset valuations, and expert testimony in litigation.

Success requires deep understanding of valuation methodologies (income, market, asset approaches), relevant professional credentials (CVA, ABV, ASA, or CFA), industry knowledge to understand business economics, financial analysis skills, and clear communication explaining valuation conclusions.

Most valuators come from accounting, investment banking, or corporate finance backgrounds.

Projects involve analyzing financial statements, researching comparable companies and transactions, interviewing management, applying valuation methods, and preparing detailed valuation reports.

The work requires defending methodology and conclusions, especially for tax or litigation purposes.

Marketing targets M&A advisors, attorneys handling estate planning or litigation, accountants needing valuations for clients, and businesses contemplating transactions.

Professional credentials and experience are critical for credibility.

The business offers good margins on project fees though can be lumpy with project timing.

Challenges include liability for valuation conclusions, complexity of some engagements, finding qualified staff if building team, and competition from larger valuation firms.

Many professionals maintain valuation as part of broader advisory practices.