Many times we, as Certified Public Accountants, are called
upon to determine the value of a business. Typically, this is in response to
one of the following circumstances:
- Expert Testimony/Litigation Support
- Marital Matters
- Estate Planning and Taxation
- Gift Taxes
- Buy-sell Agreement
When valuing a business, the determination of fair market
value is typically the goal. This value is defined as the price at which the
property would change hands between a willing buyer and a willing seller,
neither being under compulsion to buy or sell, and both having reasonable
knowledge of the relevant facts. This definition was developed by the Internal
Revenue Service in 1959 and is still considered the most authoritative
definition.
The value of a business is dependent upon several
significant factors including the history of the business, anticipated future
earnings, competition, economic strengths and weaknesses, location and
management. A final conclusion of value is reached after consideration of
various premises of value and the purpose of the valuation. In addition,
factors such as control and marketability must be addressed.
We at Cummings, Lamont & McNamee will be pleased to
assist you in determining the value of your business. Two of our shareholders, Randall E. Dunham and D. Bruce McNamee have
achieved the designation of Certified Valuation Analyst (CVA) from the National Association of Certified Valuation
Analysts (NACVA). Additionally, Mr. Dunham and Michael Asselin have been
awarded a Certificate in Educational Achievement in Business Valuation by the
American Institute of Certified Public Accountants (AICPA). Finally, Mr. Dunham was
among the first to become Accredited in Business Valuation (ABV) by the AICPA.
Cummings, Lamont & McNamee has recognized experts in the field of business
valuation and are qualified to assist you in this area.
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