Shannon Pratt Business Valuations

Business Valuations
Business valuation is defined as "the act or process of determining the value of a business enterprise or ownership interest therein."¹ The type of business valuation required on an assignment is contingent on the purpose of the engagement.
These can include but are not limited to:²
        Gift and Estate Taxes
        Employee stock ownership plans (ESOPs)
        Dissenting stockholder or shareholder oppression actions
        Marital dissolutions
        Partnership or corporate dissolution
        Bankruptcy reorganization
        Liquidation
        Buy-sell agreement pricing

Estimations of Damage
Most damage claims are calculated by administering one or both of the following methods:³
        Before and after
        Yardstick ("comparable")Sales projection ("but for")

Report Reviews
We will review your report or the opposing side's report to verify that it meets all USPAP Reporting Standards, IRS business valuation guidelines (if it's a valuation for tax purposes), as well as any applicable association standards. We will also check these reports for strengths and weaknesses, accuracy, relevance and quality.

Research Services
Guideline Company searches, economic analysis, and much more.

Expert Testimony
Deposition testimony or courtroom testimony if this becomes necessary following a business valuation engagement.

Fairness Opinions
A fairness opinion is generally required when a publicly traded corporation is involved in a merger, acquisition, or other type of transaction where the board of directors wants to have an independent appraiser give its blessing to the transaction.⁴

1. Valuing a Business: The Analysis and Appraisal of Closely Held Companies, Fourth Edition by Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs, 2000, McGraw-Hill, publishers.

2. Business Valuation Body of Knowledge: Exam Review and Professional Reference, Second Edition by Shannon P. Pratt, 2003, John Wiley and Sons, Inc., publishers.

3. Valuing a Business: The Analysis and Appraisal of Closely Held Companies, Fourth Edition by Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs, 2000, McGraw-Hill, publishers.

4. Understanding Business Valuation - A Practical Guide to Valuing Small to Medium-Sized Businesses, Second Edition by Gary R. Trugman, 2002, American Institute of Certified Public Accountants, Inc. publishers.