Why Are Businesses Appraised?

Certain types of business valuations are guided by specific sets of rules, such as state statutes and IRS or Department of Labor regulations. If a minority interest is being valued, certain adjustments may not be able to be made to the company's financial statements because the minority interest cannot legally make such adjustments. Valuations in divorce proceedings may have case law restrictions that must be considered, for example, separating goodwill from the goodwill of the practice.

Businesses are commonly appraised in connection with the following:

* Mergers and acquisitions.

* Allocation of purchase price.

* Estate and gift taxes.

* Marital dissolution.

* Employee stock ownership plans.

* Liquidation or reorganization of a business.

* Buy-sell agreements.

* Stockholder disputes.

* Financing efforts.

* Ad valorem taxes.

* Incentive stock option...