Business Valuations

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What Happens to Your Business During a Divorce?

Due to the nature of our work at the Men’s Divorce Law Firm, many clients we deal with have a business, or have a wife with a business, that is the main source of marital income. To determine the proper equitable distribution of marital assets, it is extremely important that a business valuation be performed in such a case.

There are many different elements of a business valuation.

• First and most importantly, the economic conditions at the time of the valuation can be a key factor in determining the overall value.
• Rises and falls in the economy can determine the distribution and sale of goods and services a company provides which then can increase or decrease the worth of the business.
• The next element of a business valuation is the financial analysis. This financial analysis will determine where this business fits in with the rest of the players.

We Help You Keep Your Business

At the Men’s Divorce Law Firm, we pay special attention to this element of the business valuation to insure that all numbers gathered are accurate and used correctly in the distribution of the marital assets. The Men’s Divorce Law Firm works with financial experts such as appraisers and accountants to perform extensive business valuations so as to be sure our clients are receiving exceptional service.

Business Valuation FAQs

Do I need an appraisal or a business valuation?

Depending on the context and the audience, these words can be used interchangeably or carry distinct meanings. Give us a call to discuss your situation and we’ll make sure you receive the appropriate services.

How do you determine the value of my business or business interest?

No doubt every engagement is unique in its own right, but the fundamentals of business valuation remain the same. In order to determine the value of your business, we rely upon industry standard business valuation methods that include one or all of the following three approaches: Asset Approach, Income Approach based upon discounted cash flows or capitalized earnings, or a Market Approach based upon a comparable transaction analysis.

Often, the business value determined using these approaches must be adjusted to reflect specific aspects of an engagement. For example, business valuation can change depending on whether:

• The company is being sold in an asset versus a stock transaction
• The transaction involves a fractional or minority interest in the business
• There are material restrictions on liquidity
• There is real estate included
• Debt is being assumed
• The business experiences high volatility or has other unique risks
• A single person (often the seller) is vital to the company’s prospects going forward