Business Valuation

Business owner have many reasons to understand the value of their business. From wanting to sell your business or apply for a business loan. Or maybe you are interested in buying out a partner. You might need the value for tax or succession planning. Having a business valuation can answer a lot of questions.

At Scase & Partner, we understand the complexities involved in farm and business valuation. In addition Scase & Partner understands how important it is to prepare appraisals and assessments that truly reflect the value of the assets.

It’s common for business owners to have a different value in mind than potential buyers, family successors, and tax assessors. This can lead to disputes, and affect post-transition plans.

Succession planning is a specialty for Scase & Partners. Over the years we have seen many of our clients start to think about retirement. Agriculture is forever changing and family plans sometimes change. Valuations of the farms and the farming business is a critical step to ensure that everyone understands.

Scase & Partner can also help you identify weaknesses in your company, find ways to boost its value and take steps to minimize your tax liability before a sale. We utilize the latest methods and even use UAV in some cases to understand your crops.

Three main methods frequently used to determine the business valuation of a company. Each method may yield a different value; the highest of these values usually reflects the fair market value of the business.

Earning based valuation

Earning based approach is for established businesses that are generating reasonable returns and whose value is greater than that of their assets alone. We look at the books and provide you and understanding of the numbers.

Market based valuation

Market based approach calculates a valuation by applying a valuation multiple, which might be based on the earnings. The specific figure used and type of ratio vary depending on many factors, such as industry and size of the company, market conditions and multiples used to buy or sell comparable businesses.

Asset based valuation

Asset based approaches are used for businesses whose value is asset-related rather than operations-related. This approach is applied when a business has poor performance  or is expected to be liquidated.

 

Give Scase & Partner a call to discuss your business valuation needs today