June 2001 On-line Tax Planning

Business Valuations

Business valuation involves a comprehensive examination of a closely held business' financial situation and its position in the marketplace it serves, and the determination of a fair market value for the business entity.  Valuation is determined by looking at a number of factors, such as the earnings-generating ability of the business assets (going concern value) and the value of the assets themselves.

Most business owners recognize the need to value their business when involved in a sale of that business.  A properly documented valuation is an invaluable aid to the seller of a business - as well as to the buyer.  Armed with the information proved by such a valuation, both the seller and buyer can make better decisions regarding the transaction.

The need for valuation also arises in other instances:  when a merger is considered; when a gift of all or a portion of the business interest is contemplated; when a buy-sell arrangement is entered; upon a marital dissolution; or when an interest in the business is to be given as employee compensation (i.e., through a stock bonus plan).  Numerous other situations may give rise to the need for a professional valuation as well.

As accounting professionals, we can provide the knowledge, experience, and objectivity you should look for in a business appraiser.  If you should have the need for a valuation of your business, or of a potential acquisition, please contact us.

Prior Tax Planning Reports
May 2001 - Saving For College - Indiana Section 529 Plan -
April 2001 - New Retirement Account Distribution Rules
March 2001 - Business Transfers:  The Tax Considerations
February 2001 - Employee v. Independent Contractor Status
January 2001 - Charitable Tax Deductions
December 2000 - Don’t Overlook These Tax Deductions
November 2000 - What's Taxed; What's Not
October 2000 - Save on Your 2000 Taxes
Take Credit For Higher Education

For More Information Contact:

Bucheri McCarty & Metz LLP
2366 W. Boulevard
P.O. Box 2147
Kokomo, IN  46904-2147

Telephone: (765) 236-2300
FAX: (765) 236-2333
Internet: info@bmmcpas.com