We work with a lot of business owners who need help with determining the value of their businesses. The value of a business is normally defined as its fair market value, or the price at which a property would change hands between a willing buyer and a willing seller who are both informed and under no compulsion to act. The most common reasons we recommend doing a business valuation are:
- Establish a purchase price in a buy-sell agreement
- Determine the size of the gross estate for death tax purposes.
- Determine if the estate qualifies for tax-relief provisions.
- Plan for an equitable disposition of the estate among children where some are active in the business and some are not.
- Determine the value of lifetime gifts of the business.
- Develop an exit strategy when planning retirement.
At Ifft & Palmer, we will work with you to determine what your business is worth and we will show you ways to help plan accordingly for the future success of your business.
*For actual business planning purposes, an independent appraisal by a qualified business valuation professional should be used.