• Larry G. Boss, CPA 
  • Gerald R. Deller, CPA/ABV, CVA 
  • Vicki McKnight, CPA 
  • Kelly Coppedge, CPA 
  • John C. Curtis, CPA 
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When Value Matters

Measuring and improving the value of business

 

Levels of Service

 

We provide a full range of business valuation assistance to the professional community. Whether you need a full valuation report with expert witness testimony or consulting services regarding the preparation and development of your case, Boss Deller + Co. is able to meet your needs. We make every effort to tailor our services to you and your client.

 

The Business Valuation Process

 

Your goal in any case is to represent your client’s needs in the best way possible. That goal should dictate the type of firm you choose to perform the valuation of the business. Be sure the valuation is performed within standards recognized by the professional community that will withstand legal scrutiny.

 

Boss Deller + Co. uses a four-pronged approach to each valuation engagement.

 

Each one of these elements is extremely important in ensuring that the estimate of value is a result of the application of professional standards and judgment. We have provided a detailed flow chart of the processes that go into each of these phases.

 

This process also ensures that all the elements that affect the business’ value have been considered. A thorough assessment of the company’s management, the specific industry, the competitive environment, and the economy in which the business operates is vitally important.

 

Ongoing Value

 

At Boss Deller + Co., we’re committed to providing ongoing value to the business owner. During the course of the valuation process, we observe and analyze a vast amount of information about the company and the specific industry. As a result, at the end of the valuation engagement, we provide the owners with valuable insight regarding current operations, industry benchmarking, and independent forecasts of industry trends. Armed with this information, the owners can elect to take measures to best exploit this information.

 

All of our business valuation work is supervised or conducted by Gerald R. Deller CPA/ABV, CVA, who has received certifications from recognized Business Valuation Organizations. This ensures that the processes we use are recognized and accepted by various governing and judicial bodies.

 

When the value of the business really matters, let Boss Deller + Co. be your expert.

 

Types of Business Valuation Services

 

 

Level of Service

 

Features

 

Examples of Uses

 

Delivery Time

 

 

 

 

Valuation Analysis – Detailed Report

Report stands on its own.
Full discussion of company background, economic conditions, industry outlook, financial benchmarking.

Estate / gift taxes

Unknown third party users.

6 weeks

 

 

 

 

Valuation Analysis – Summary Report

Same analysis as Detailed Report, (above), but the report omits extensive discussions of economic and industry outlook.

Divorce

Litigation support

6 weeks

 

 

 

 

Valuation Analysis – Calculation Report

Analysis limited to owners’ interpretations of business outlook, limited adjustments to financial statements, and benchmarking of industry data.

Buy/sell agreements

Sale or purchase

General planning
(all parties aware of limitations to analysis)

2 - 4 weeks

 

 

 

 

Consultation / Oral Report

Discussion, analysis, and advice regarding specific situations

Litigation

Business planning

N/A

 

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1 Fee estimates are based on businesses fitting the following criteria. Because of increased complexities, any deviations from these (or other factors) may result in additional fees.

 

 

2 Some valuation methods require appraisals for tangible assets (e.g., real property, equipment, etc.). Fees for those services are generally charged by the appraiser of such property.

 

Frequently Asked Questions

 

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What is a business valuation?

A business valuation determines the estimated market value of a business entity. A thorough, robust valuation consists of an in-depth analysis by a qualified, independent professional who combines (1) proven techniques, (2) analysis and understanding of a specific company and its associated industry, (3) research and analysis of industry, association, and other publications; academic studies; the national and local economy; and on-line databases with (4) judgment honed by education, training, and experience, and (5) intuition. The resulting valuation is a well-founded estimate that represents the price that hypothetical informed buyers and sellers would negotiate at arm’s length for an entire business or for a partial equity interest.

 

Why do I need a business valuation?

Establishing and documenting the value of a business is a savvy decision for several reasons. First, a high quality valuation can be the cornerstone of a successful business plan to increase the firm’s value, it can reduce the risk of future legal problems, and it can decrease unnecessary expenses. Second, by establishing a price for a business, a valuation can assist business owners in negotiating a fair deal in situations as varied as a buy/sell agreement, a merger, sale, or acquisition, or a joint venture or strategic partnership. Third, given estate and gift taxes that, combined, can be greater than 50%, a valuation is a crucial initial step for gift and estate tax planning. Finally, certain valuations are mandated by government and judicial authorities, including eminent domain takings, S corporation election, and marital dissolution.

 

Why is a business valuation so expensive?

A business valuation is a complex process involving the analysis of internal and external factors derived from a company’s financial statements, performance, operations, products and services, along with the influences of industry competition, government, and the economy. Once this information has been gathered, it is up to the valuator to use his education, training, experience, and professional judgment to arrive at an estimate of value. These qualifications are very important when credibility is a vital factor (e.g., IRS reports, marital dissolutions, and litigation support).

 

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Isn’t there a way to keep the cost down?

Not all valuations need to be in the form of a full written report. On the other end of the spectrum a company may only require a quick “first blush” letter report to be used internally. A limited-scope report can provide the owners with a range of values for the business and, if necessary, allow the valuator to estimate the cost to complete the more complex steps needed for a full-scope written report.

 

What about just using a general rule of thumb as an estimate?

Extremes of undervaluation or overvaluation often arise when the seller or buyer relies on hearsay that grows out of industry rules of thumb. Rules of thumb often get transmitted imprecisely between friends or relatives. People mean well by passing on what is assumed to be reliable information about a multiple of earnings from a best friend’s cousin or the latest trade conference. However, do they mean earnings from operations, earnings before tax, earnings after tax, adjusted earnings, or unadjusted earnings? Is it before or after depreciation? Was the price paid in cash, or was part of the price contingent upon meeting future sales and profit goals? A valuator looks at each of these in detail and may make adjustments before applying an earnings multiple or using some other method of valuation.

 

What’s the date of the valuation and why is it so important?

A valuation is an estimate of value at a specific moment in time. Events that take place after that time are not to be considered in determining the value at that moment. It is very important, then, that the date of valuation be established up front to minimize the cost of the engagement and to give appropriate feedback during the course of the valuation process.

 

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