Business Valuation
A business valuation provides more than a number; it offers insight into how your business creates value, where risk exists, and the steps you can take to strengthen its financial position. Whether you’re planning for an exit, transferring ownership, resolving a dispute, or satisfying tax or financial reporting requirements, an accurate and defensible valuation is essential.
We deliver valuations that combine technical accuracy with a practical perspective. Every engagement is performed in accordance with the professional standards of the National Association of Certified Valuators and Analysts (NACVA), and our team holds the Certified Valuation Analyst (CVA) designation. These credentials reflect our commitment to rigorous analysis, independence, and clear communication.
Just as important, we focus on demystifying the process. Our goal is to make complex topics understandable so that you can use the results to make informed, confident decisions.
Why Businesses Seek a Valuation
- Establishing a baseline for exit or succession planning
- Supporting a sale, merger, or acquisition
- Complying with IRS, estate, or gift tax requirements
- Meeting financial reporting standards such as ASC 805, 350, 718, or 820
- Facilitating shareholder buyouts, partner disputes, or marital dissolution
Let’s Connect
If you have questions or need assistance, please fill out the form and a KatzAbosch representative will get back to you shortly.
Our Valuation Experience
Our experience covers a broad range of business interests, industries, and assets, including:
- Entire business entities and partial ownership interests
- Common and preferred stock, options, warrants, and other securities
- Intangible assets such as customer relationships, trade names, technology, and noncompete covenants
- Closely held companies across industries such as construction, government contracting, manufacturing, and professional services
Our Process
Discovery and data gathering: We meet with you to understand your business, its history, and the purpose of the valuation, and to collect key financial and operational information.
Preliminary analysis: We review historical performance, normalize results, and identify the primary drivers of value.
Management interview: We conduct a focused discussion with company leadership to understand operations, competition, key risks, and future expectations.
Valuation modeling: We apply the income, market, and cost approaches as appropriate and test the results for reasonableness.
Client review: We walk through the draft valuation together, explaining assumptions and conclusions in clear, straightforward language.
Final report and presentation: We deliver a concise, defensible report that meets professional standards and provides actionable insight.
“Going through the process of selling our business, we were prepared because of their level of attention. All along, we had someone on the phone like a friend.”
Business Valuation Insights
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The Business Valuation Gap: Why Buyers and Sellers Disagree on Value
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Selling a Business With SBA Financing: What the New SOP 50 10 8.1 Rules Mean for Buyers and Sellers
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Frequently Asked Questions
How is the value of a business determined?
A business valuation estimates what a company or ownership interest is worth as of a specific date. The analysis considers earnings, expected cash flow, assets, debts, and business risks. Valuation professionals select appropriate business valuation methods, which may include comparing similar companies, analyzing future earnings, or assessing assets and liabilities.
What factors affect my business’s value?
Your business’s value depends partly on its ability to generate consistent earnings and cash flow. Growth opportunities, customer relationships, management experience, and the condition of financial records also influence the analysis. Risks can reduce value. For example, a business that relies heavily on one customer could lose a substantial share of its revenue if that customer leaves.
Should I get a business valuation before selling my company?
A valuation can help you set realistic expectations and evaluate offers before selling. It can also identify issues buyers may question, such as inconsistent financial records or heavy dependence on the owner. Getting a valuation early gives you time to address those issues and prepare for buyer due diligence, the buyer’s detailed review of your business.
Why might a buyer’s offer differ from my business valuation?
A buyer may have different expectations about your company’s future earnings or the risks of owning it. The offer could also depend on which assets and debts are included and how the purchase will be paid for. Understanding why buyers and sellers disagree on value can help you evaluate an offer. A valuation supports negotiations but doesn’t guarantee a sale price.
How do owner compensation and one-time expenses affect business value?
Reported earnings may need adjustments to reflect the costs a new owner would face. For example, if an owner earns $80,000 annually but hiring someone to perform their duties would cost $140,000, earnings could be adjusted downward by $60,000. A one-time expense that isn’t expected to recur may support an upward adjustment. These hypothetical adjustments help explain how ongoing earnings are evaluated.
What information should I prepare for a business valuation?
Expect to provide financial records and information about ownership, operations, major customers, and future plans. You may also need records explaining unusual expenses, owner pay, or transactions between the business and its owners or their other companies. For example, if you own the building your business rents, the valuation professional may review the lease and rent payments. The specific documents needed depend on the engagement.
How long is a business valuation valid?
A valuation reflects your business’s value on a particular date. It doesn’t automatically remain suitable for every future decision. Losing a major customer, taking on significant debt, or experiencing a substantial change in earnings may warrant an update. Before reusing a valuation, ask whether its date and purpose fit your current needs.
What’s the difference between a business valuation and a quality of earnings analysis?
A business valuation estimates what a company or ownership interest is worth. A quality of earnings analysis examines how the business generates its reported earnings and whether those earnings are likely to continue. For example, it may identify a one-time gain that increased profit but won’t recur. The findings can inform a valuation, but a quality of earnings analysis doesn’t establish the business’s value.