Value is a difficult word. In context, it can refer to the way we live our lives and run our businesses, ie an ethical or moral code. Or, it can refer to the subjective importance of an object, like a treasured family picture, even though it has little or no monetary value. In the context of business, value can be particularly troublesome.
A multitude of circumstances require understanding the value of a business: bringing on or buying out partners, the death or disability of a shareholder, ownership succession and exit planning, or litigation. But owners are often too close to their own businesses to objectively assess the value of their business interests. Many situations, like tax reporting, require a valuation by a “qualified appraiser,” like AILA Limited.
Rather than relying on “rules of thumb” like many business brokers, AILA reviews historic and, if available, prospective financial data, compares the financial performance of the entity to other industry participants and evaluates the general, local and industry economic conditions to reach a conclusion about the value of the subject business interest.
Professional standards recognize that not all engagements require a full “Valuation Engagement.” AILA endeavors to match the level of service to the client’s needs and specific circumstances. To discuss your specific needs, contact AILA.
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