Valuing a Business

Assigning a value to a business for purposes of a division can be done in a number of ways. Dividing a business is usually impractical. The best way to value it for division purposes is by agreement, assuming both parties are on relatively equal footing in making this determination. Unfortunately the typical scenario involves one party keeping the business after separation and that party will argue for a low or nominal value while the other party believes the value to be much higher (as they must be paid for half). The value of a business is not in most cases, self evident. Businesses are difficult to market, and there are often few willing buyers, however, businesses making money and/or owning assets are in many cases worth a considerable sum. We sit down with each client to discuss the business in question. We review public records and search assets, tax records, incomes, accounts receivable, expenditures and all other available information.

In many cases, we will seek the opinion of an expert evaluator to determine the value. This can be done very economically in most cases. Some small businesses are worth millions while others are not worth enough to hire an expert to determine the value. We assist our client in making this determination. In some cases we are faced with the issue of hidden income, or a “cash business”. In these circumstances we work hard to trace expenditures and discover evidence of money going out that has not officially come in. Again, the assistance of a skilled accounting professional can often lead to a real evaluation that is many times higher than the other party claims.

Do You Own a Business and Need a Divorce Attorney? Our Law Offices in Knightdale & Raleigh Can Help!

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