Business Appraisal

CapVal-ABA provides business appraisal and appraisal-related services for a broad range of purposes including the following (please note that our litigation support services and marital dissolution and equitable distribution services are described on separate pages of our website):

• Financial Reporting (including ASC 718 / IRC 409A)
• Tax Compliance (including estate and gift tax) and Tax Disputes
• Corporate Transactions
• Employee Stock Ownership Plans (ESOP)
• Exit Planning and Ownership Transition Strategies
• Business Appraisal Review

Financial Reporting (Fair Value Measurements)

CapVal-ABA is a leading provider of valuations for financial reporting purposes. Every member of our team has one or more business valuation credentials. In addition, ten are CPAs and one is a CFA charterholder, all focused solely on valuation and valuation-related services. We have completed hundreds of engagements and worked with most major national and regional audit firms active in our geographic markets. Our clients encompass a wide range of industries. CapVal-ABA has extensive experience valuing pharmaceutical, biotech, and other technology businesses and technology-related intangible assets as well as, but not limited to, manufacturing and hospitality businesses. We have worked with many companies from inception through successful initial public offering or strategic sales. We have helped clients comply with the following accounting standards:

• ASC 718 (SFAS 123R) / IRC 409A – equity-based compensation (stock options and restricted stock)
• ASC 805 (SFAS 141R) – business combinations (purchase price allocations and intangible assets)
• ASC 350 (SFAS 142) – goodwill impairment testing
• ASC 820 (SFAS 157) – fair value measurements (portfolio valuation)
• ASC 815 (SFAS 133) – derivatives and embedded derivatives

Tax Compliance and Tax Disputes

CapVal-ABA’s professionals have extensive experience in appraisals for estate and gift tax purposes, and we keep up to date with all related Tax Court rulings. We provide thoughtful, well-documented, clear and concise reports that conform with required standards and consistently withstand IRS scrutiny. We have significant experience in family limited partnership and family LLC valuations including tiered structures and entities involving securities, real estate, and intangible assets. We have the ability to analyze complex and unusual valuation challenges, and develop unique solutions based on creative applications of accepted and peer-reviewed valuation techniques. We have helped clients address tax issues related to the following:

• Estate planning / estate and gift tax
• FLPs & LLCs
• Charitable deductions
• Disposition planning
• Equity-based compensation (IRC 409A)

Corporate Transactions

CapVal-ABA has advised numerous clients who have considered or pursued structural changes of their businesses. Whether you are establishing a buy-sell agreement among partners, buying out a partner or shareholder, acquiring or selling a business, or restructuring your company, we can provide valuation and pricing services that help you understand the financial implications and make the right decisions. We have an investment banking affiliate, with offices throughout the U.S., which offers a full range of sell-side and buy-side services.

We have helped clients with the following types of transactions:

• Buy-sell agreements
• Shareholder & partner buy-outs
• Equity financings
• Mergers, acquisitions, divestitures, and investment banking
• S Corp conversions
• Bankruptcy
• Corporate reorganizations
• Fairness & solvency opinions

Employee Stock Ownership Plans (ESOP)

CapVal-ABA is an employee-owned company so we understand the importance of creating a culture of employee ownership. The formation of an Employee Stock Ownership Plan (ESOP) is a popular way to foster employee ownership and enable existing shareholders to meet their objectives. CapVal can help you evaluate the feasibility of an ESOP for your company, help you establish an ESOP, and provide ongoing valuation-related services.

• Feasibility valuation
• Plan administration valuation
• Valuation reviews
• Disputes

Exit Planning and Ownership Transition Strategies

A business exit strategy not only means having a plan for the succession or transfer of ownership of your business when you retire, it also means having a plan for the unexpected – including financial hardship, disability or even death. CapVal-ABA has helped many business owners develop and implement a plan to sell their company or transition their ownership to family members or employees. The planning process helps ensure the owner’s objectives are realized and that the value of the company is maximized. CapVal-ABA can provide a full range of services from identification of goals and objectives to the implementation of a plan, or simply provide one element of the overall process. We can assist an owner with the following:

• Identify owner’s goals and objectives
• Identify exit and ownership transition alternatives
• Determine business valuation and pricing based on various alternatives
• Develop an action plan to enhance and preserve value
• Coordinate accounting, tax, legal and other advisors
• Execute exit plan

Business Appraisal Review

As recognized leaders in business appraisal, we are often asked to review the appraisal reports prepared by other firms. This often occurs in the context of a disagreement between two or more parties. The purpose of a business appraisal review is to determine whether the appraisal conformed with all relevant valuation and professional standards and to identify any material departures from those standards. The review also highlights areas where the valuation approaches, methods, techniques or assumptions utilized in the appraisal might be replaced by others which would generate different appraisal conclusions. Lastly, the review may identify calculation errors or inconsistencies which affect the results of the appraisal. A business appraisal review may, but is not required to, include as a separate element, the reviewer’s development of an opinion of value related to the subject of the work under review.