Valuations & Appraisals
Want To Know What Your Business Is Really Worth?
Answer just a few quick questions about your business and you’ll quickly get a free ballpark range estimate as to what your business would sell for on today’s market from one of our experts with access to real-time market data.
From there, you can decide if you want to get a more detailed appraisal report, keep growing it, or put it on the market.
Need more than a quick, free value range estimate? Want an exact number with the data and explanations you need to back it up and defend it?
We have two paid options; Opinion of Value Reports and Formal Appraisals:
Opinion of Value
These are an affordable solution for business owners that want to zero in on a specific fair market value price tag of their company within the range estimate. It is great for owners that already have a buyer or successor and want to determine a fair price tag, but don’t need an expensive, formal appraisal.
These are 5-12 page reports that our business analysts create that relay what you need to know to feel confident in the value of your you know what your business is worth. We charge $1,000-$1,500 for these and can typically turn them around in 72 hours or less once you’ve submitted your financials to our analysis team.
These are done exclusively by our in-house Business Certified Appraisers (BCA’s), and carry their official seal of the International Society of Business Appraisers (ISBA) which is an organization approved by the IRS, SBA and other governmental organizations as a legitimate source of a business appraisal that complies with USPAP and other regulatory requirements.
Formal appraisals are 30-100 pages long, require an extensive amount of documentation, and start at a few thousand dollars and can go up depending on their size and complexity. Turnaround is typically three weeks after we receive the necessary source documents from you.
Who Needs An Appraisal?
In short: Attorneys, Bankers & Lenders, Business Owners, Financial Planners, CPA’s and Accountants.
If you can identify with any of the following business situations, you absolutely need an independent third party appraisal. Obtaining a Certified Appraisal from a Certified Business Appraiser (CBA) will provide you with a substantiated and defensible value.
- Buy/Sell Agreements
- FASB 141 & 142
- Converting From C To S Corp
- Insurable Value Foreclosures
- Sarbanes Oxley
- Divorce Settlements
- Mergers & Acquisitions
- Litigation Support
- Trust & Estate Planning
- Partnership Dissolution
- Gift Estate Planning
- 1031 Exchanges
- Retirement Planning
Business Values that are accurate, substantiated, irrefutable, and defensible can only strengthen your client’s case. Using a certified appraisal from Texas Business Buyers, as part of your case preparation is one of the best tools to have. Our appraisals are conducted to the exacting standards of the International Society of Business Appraisers and conform with IRS and SBA standards. This, combined with our real-world transactional experience make our appraisals hold weight.
Times and regulations are evolving concerning a “qualified appraisal” of the tangible assets. Even the IRS recently adopted what a “qualified appraiser” means. You and your bank are at risk if you rely on a guess, the owner’s word, a depreciation schedule, or the word of a non-certified person who may have a “hidden” agenda. All of these methods are not only inaccurate but filled with risk! The value will not withstand scrutiny with bank examiners, IRS, attorneys, CPAs, courts and others.
Bankers and Lenders are required to make decisions that involve assets such as Machinery and Equipment used by business owners. This value must be realistic and fair, Texas Business Buyers Appraisals provide independent certified third party valuations that can and will hold up to scrutiny. There are a number of scenarios that will justify the need for an appraisal. If your clients need additional collateral for securing an existing loan, asset valuation for repossessed machinery or equipment, re-valuation of your current asset balance sheet, asset valuation for litigation reasons etc.
Some business owners don’t know what the value of their business is really worth. Unfortunately, some business owners arrive at the value of their business by using tax returns, depreciation schedules or financial statements prepared for tax purposes as the only financial presentation of their business. But you should know, book value is not the same as true “fair market value”. While “book values” may be good for tax purposes, tax returns and financial statements do not reflect years of hard work in them and do not show the entire value of the business and its assets. If the business is profitable, there exists a value for goodwill. Some people would call this “Blue Sky”. While buyers or lenders cannot justify Blue Sky, goodwill can be computed and justified.
Business owners need a value they can rely upon that will hold up to scrutiny with lenders, buyers, IRS, courts and others. That’s why it makes perfect business and financial sense to call upon the skilled professionals Texas Business Buyers who are Certified. You can rely on a substantiated and defensible value of your business that will hold up to scrutiny.
In 2006 Congress passed IRS Pension Protection Act of 2006 and Circular 230 that stipulates a true and accurate fair market value of your clients’ business and capital equipment. A qualified independent third party must substantiate these values. The liability and risk associated with relying on anything other than a Certified Business Appraisal is too high of a price to pay. Texas Business Buyers Appraisals determines a substantiated value & report consistent with the Uniform Standards of Professional Appraisal Practice (USPAP). Our services would be utilized for converting C to S corps, 1031 Exchange, ESOPS, valuations (Book value is different than the needed Fair Market Value), gifting, estate planning, value support for key man life insurance, Buy/Sell Agreements and financing (establish collateral value).