VALUATIONS

• Marital Dissolution

• Shareholder/Ownership Disputes

• Receivership Accountings

• Lost Profit computations

• Asset Tracing

​

Because we are CPA’s and Forensic Accountants, we can effectively critique financial records relied on in litigations. We are also expert in tracing financial transactions involved in potential fraudulent transactions. We have extensive expert witness experience. We bring depth of knowledge to the litigation engagement.

​

What are Valuation Standards?

Why do they matter?

There are many business valuators to choose from, however, not all of them are credentialed. Why should you choose a business valuator holding a valuation credential?

Business valuators holding one or more of the following a valuation credentials CPA./ABV; CPA/CVA, CBA, ASA and ABAR have had rigorous training, passed a national exam including preparation of a graded case study. Also, they must recertify their licenses periodically by taking a directed program of continuing education certified by their member organization. We adhere to this standard.

Each of the national valuation organizations (NACVA, AICPA, IBA, ASA) abide by valuation standards. The valuation standards dictate what must be considered in the “development” of the valuation report and the “elements” that must be present in each type of report.

​

• National Association of Valuation Analysts (Nacva)

  • Adhered to by Nacva/IBA members

• Statement on Valuation Standards 1 (SSVS1)

  • Adhered to by NACVA, AICPA, IBA members

• Uniform Standards of Professional Appraisal Practice (USPAP)

  • Adhered to by ASA

• American Society of Appraisers (ASA)

  • Adhered to by ASA members

  • ​

The difference in the standards is the type of report the valuator is permitted to issue. Over the last ten years the standards of the licensing organizations are fairly close although not identical. The issue is not which is better, but that you hire a business appraiser who holds a license.

Palius, O'Kelley & Janzen are certified.

​

Valuations prepared by Palius, O’Kelley + Janzen
are in compliance with NACVA standards and the AICPA standard SSVS1.

​

What is in it for you?

This is an assurance for you that the reports we provide are in compliance with National standards of excellence and if necessary will admitted to court and also stand up to IRS scrutiny.

​

What kind of report can I get?
SSVS1 defines different types of reports that can be prepared. These are:

• Conclusion of Value: detail and summary
  The conclusion of Value is considered a full appraisal report.

• Calculation of Value
  The calculation of value is not a complete report because the full scope of development is not required. However, these reports are less expensive than a conclusion of value. The choice should be thoroughly discussed with your attorney and your appraiser.

• Computation
  At times companies adopt a formula to value their business on a periodic basis. The execution of this formula is considered a computation.

​

Litigation exception
A valuation prepared for a litigation allows for certain exceptions applied to the format of the report. Many times the courts do not have the time to read a 100 page valuation report and the appraiser must condense their report. This reporting exception is called the litigation exception.

​

Valuation Pricing
Pricing for the reports depends on the complexity required. We are happy to meet with you for an hour complimentary meeting to discuss the valuation needs you require. If you and your attorney would like an opinion regarding whether a report is economically justified we can provide you with a flat fee.  Our Justify the Value™ service costs between $900 - $1,500. Ask us for a proposal.

​

How we can help you and your clients:

Fractional interests in Real Estate Partnerships

You are assisting your client with an estate planning project. Your client owns several revenue producing properties. Your client agr-based strategies to transfer some of the properties to a pass through entity such as a Family Limited Partnership. The plan is to either gift some of the interests or sell to a generation skipping trust. A business valuator can value the limited interests by applying a fractional interest discount to the fair market value determined by a real estate appraiser. The discounted gifts pass to the beneficiaries saving estate tax for the family.

​

Valuations to support an estate tax plan

You are drafting an estate plan for a client who is a successful entrepreneur. The family owned business is a significant part of your client’s estate. Your client wishes to provide for his family and minimize potential estate taxes. A competent business valuator can work with the attorney to determine the legitimate discounts available to values so an appropriate structure can be created in order to achieve the client’s goals.

​

Valuations are valuable in business strategic planning

Your client’s business not doing well. The client needs strategic planning. A business valuator can provide your client with a candid assessment of the competitive situation. The valuator can assist with various valuation strategic alternatives which may help your client turn their business around.

​

Valuation of Built in Gain

Your client, a C corporation wishes to make a S corporation election. Your client’s business owns significant intangible assets. Your client will need a valuation to compute the additional built in gain.

​

Litigation Support

Litigation support involves bringing perspective to financial and valuation numbers to help keep the case focused on the important numbers. We can assist with advice on the information to obtain through discovery as well as questions for deposition and trial.

​

Family Law Valuations

Family Law practitioners can work with business evaluators to assist with the valuation of a closely held business or a professional practice in accordance with California state law.