Business Owner

Expert Business Valuation Services

To support the successful transfer of ownership
and guide critical business decisions

The personal wealth of over two-thirds (70%) of business owners is tied up in their business. For many of these individuals, the business becomes their personal retirement savings vehicle. These individuals, however, could be driving blind. Without knowing the value of the business, how will they know when they can stop working or the lifestyle to expect in retirement? Having the information needed to prepare adequately for retirement is just one of the many benefits to a business valuation.

We perform business valuation services to support the successful transition of ownership in middle market businesses, as well as to provide business owners the timely information they need to make informed decisions.

In addition to exit and transition planning, privately held business owners, as well as the legal community and financial world rely on our team of experts in valuation matters for assistance in the following areas:

  • Business Growth Planning
  • Estate and Gift Tax Planning or Filings
  • Buy/Sell Agreements
  • Employee Benefit Plans (ESOPs, Stock Option Plans, etc.)
  • Lending or Investment Decisions
  • Insurance Planning

CALCULATIONS OF VALUE

It’s commonly known that, for a business owner, the value and ultimate transfer of the business typically represents the key to achieving their life plans. So…what’s the reason 98% business owners put off knowing the value of their business?  It’s because “they don’t know what they don’t know”.

Formal business valuations, while required under certain circumstances, typically involve a fairly extensive, expensive and time-consuming process. However, thanks to innovative technology those barriers can be avoided in many situations.

Using our proven and streamlined approach our valuation experts can provide accurate “Calculations of Value” at a much more reasonable cost and quicker turnaround. In fact, our valuation experts have gone one step further and developed a “Strategic Business Valuation”, which is detailed below.

Business Valuation

STRATEGIC BUSINESS VALUATION

Our valuation experts have developed a comprehensive and strategic growth-focused business valuation process intended to calculate business value and maximize it. Our process includes the following:

Baseline Business Valuation – Our valuation experts will provide a Calculation of Business Value using a preferred Income Approach, the Single Period Capitalization Method (SPCM), as well as, where applicable, the Transaction Method, a Market Approach. Our calculation engagement results in a range of values for business growth or transaction purposes, based on the following:  

  • Financial Analysis – Five (5) years of historical financial condition and operating analysis, as well as current year’s financial analysis, as necessary.
  • Key Performance Indicator (KPI) Analysis – Ratio analysis which includes industry comparisons commonly used by Private Equity Groups (PEGs) to identify meaningful trends and/or “red flags” which may require corrective action.
  • Normalization Adjustments – Identification and adjust for any non-recurring, extraordinary or non-operating income and expenses, as well as for reasonable officer/executive replacement compensation and fair market value of facility rent.
  • Transaction Database Searches – Industry, and company size, specific searches of transaction databases, analysis and filtering of results and application of resulting valuation multiples to the subject company.
  • Non-Operating Assets & Liabilities – Identification and quantification of non-operating assets and liabilities along with any necessary adjustments.

Business Value Driver Assessment – Using customized software developed at MIT, we will evaluate 18 internal and external drivers of your company’s value with a strategic focus on how you can grow the company, reduce company-specific risk, and maximize business value. The assessment and resulting Discover report can be followed up with a Deep Dive “mini-retreat” analysis to develop an actionable and detailed strategic plan for your business success.

Ownership Dependency Assessment – Owner dependency is key factor in the ultimate transfer of a business. Through a short survey, we will perform an assessment that lets you know how dependent the business is on your individual efforts in the following 8 categories: owner involvement, internal operations, strategy and planning, governance and ownership, financial matters, performance management, sales and business development, and company culture.

Business Valuation

Conclusions of Value

We also have extensive experience with traditional and more formal business valuations, which are necessary based on the intended use, such as litigation, ESOPs, stock option plans, SBA loans or estate and gift tax filings. These engagements result in a “Conclusion or Opinion of Value”. Our Calculations of Value can easily be converted to a more formal Conclusion of Value without duplication of efforts.

How Can We Help?

Read Our Reviews

FAZ CPAs is rated 4.95 out of 5.0 stars based on 20 review(s).

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Christian has, along with his good nature and thoughtful regard, been exceedingly helpful with sorting out the complexities of our case. We could not be more pleased with our exchange. Thomas and Hema Easley

- Thomas Easley

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Christian was patient and easy to understand. clear, concise and thorough. he spoke “plain” English and was respectful. he did not “rush” and he responded to every question i had, in a timely manner. no matter how “dumb” it may have seemed. for example, i received some paperwork by mail and i did not understand it. i emailed him about it and he cleared it up that day. thats great customer service!

- Joong Park

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Really good, very knowledgeable and communicated with us every step of the way.

- Haartz Corporation/Tom Daigneault

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FAZ has a great team doing terrific work for our clients.

- Jim Towne

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Exceptional work produced.

- Matt Smith

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Thanks!

- Arrow Bank

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FAZ was very professional, knowledgeable and very fair priced. The work performed was prompt, accurate and reliable. I would absolutely hire them again if in need for additional accounting work.

- Arrow Financial Corporation

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Excellent to work with. Professional and personable.

- Cambridge Central School District

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Awesome team! They were a pleasure to work with. I would definitely recommend.

- Cambridge Central School District

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FAZ was extremely thorough and professional in doing our business valuation. We are very pleased with the results

- Anne Choppy

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Steve and GeNet were great at the valuation we needed. Very satisfied. Thanks,Vince and Anne

- Vincent M. Choppy

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Perfect

- Zalazar anelardo

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Gen'et and Paul were extremely responsive to our needs. They listened and responded to any concerns that we had. I would highly recommend them for any forensic engagement needs.

- Jennifer Mulligan

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Thank-you for asking. Our experience was excellent. The people at FAZ showed a depth of knowledge and experience that was very helpful with the undertaking before us. Well done.

- Guy Tombs

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The CPAs and staff at FAZ are truly amazing. They explain their process very well and always answered my questions right away. I highly recommend them for all your forensic accounting and evaluation services.

- Ashley Hart

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Excellent and responsible.

- Peter Lee

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Steve Ferraro did an excellent job and worked tirelessly as our expert forensic accountant witness. Based on Steve's hard work, the jury awarded every penny that Steve showed our client to be entitled to and completely rejected the conclusions of the opposing side's expert.

- Dave Paliotti

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Great firm!

- John Harwick

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The people at FAZ are amazing. They are true professionals. The staff is knowledgeable & kind. You feel like you matter. Anytime I have questions they take the time to go through everything in detail so I completely understand everything. I would definitely recommend FAZ.

- Dan Dagostino