Services Overview
At T&M, our business is the valuation of businesses. Our efforts are exclusively focused on producing the best and most credible valuation opinions for a wide variety of reasons and situations. Our reports have been used for buying or selling a company, filing estate or gift tax returns, meeting SEC or ERISA reporting requirements, supporting buy-sell agreements, and pricing employee stock options. We also specialize in business litigation, supporting buy/sell agreements.
Our reports are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by The Appraisal Foundation and the Code of Professional Conduct and Statements on Standards for Consulting Services promulgated by the American Institute of Certified Public Accountants (AICPA), and standards promulgated by the National Association of Certified Valuators and Analysts (NACVA).
Business valuation is not a pure science and requires careful consideration of many factors affecting the business. Among them are current economic conditions, market position, competitive pressures, technological changes, management and operational performance, and overall financial performance. Nevertheless, we provide substantial documentation and detail in our analyses and financial conclusions to support the valuation opinion. We provide market based studies and other empirical evidence in support of our value conclusions.
The Valuation Process
First and foremost, we take the time to understand our client’s needs and that of their advisors (attorneys, accountants, and others) and recommend an appropriate valuation solution. If a valuation report is required, there are several levels of assurance depending on the client’s need. All reports are prepared in compliance with the standards promulgated by USPAP, AICPA and NACVA, in addition to meeting the requirements of Adequate Disclosure for Gift Taxes (Reg. 6501) where applicable An Appraisal Report (also known as a full opinion or detailed report) is most appropriate for large gifts of fractional interests, estate valuations, ESOPs, sale of a business, and matters regarding litigation. An independent appraisal is fully supported with market based studies and empirical evidence of value. This level of appraisal is defensible in the courts and to the IRS.
A Restricted Use Appraisal Report contains all of the required elements of an appraisal report, but is more limited in scope and report disclosures. The scope limitations are those elements of appraisal that are not particularly relevant to the business under appraisal.
A Calculation of Value represents an estimate of value, not an opinion or conclusion of value. It is also known as a consultative report and is an excellent planning tool. It is a limited report that is based on the economics of the subject, typically utilizes only one valuation method, and may provide a range of value. It is appropriate to answer the “What is my business worth?” question and is an economical method of determining an estimated value and associated discounts.