Nashville Business Valuation In Divorce Attorney
Proficient Business Valuation in Divorce Lawyers in Nashville, TN
If you are getting a divorce and own a business, you must get your business valuation done. It is even more crucial in cases where you own the business before your marriage, started the firm after marriage, or if the business belongs to you and your spouse jointly. A Nashville business valuation divorce attorney can use several critical techniques to determine your company’s worth.
During a divorce, a professional Nashville business valuation divorce attorney must define the standard of value they use before they begin the appraisal process. It should either be in the fair value or fair market.
A fair market value is a total price a business would sell for if sold from a seller to a buyer where there is no compulsion to sell or buy. There are cases where a discount for lack of marketability or discounts for lack of control could be applied when determining the final value.
A fair value standard, however, could vary depending on the context. This value is often dictated by the court that has jurisdiction over the case. The discounts mentioned above are not ideally used in case of a fair value standard. Now, let us look at the top methods Nashville business valuation divorce attorneys use. One or more of these may be used in your case to reach the final valuation for your business.
The asset valuation method will show all of your company’s assets, both intangible and tangible. A professional evaluator will find out the book value or market value of your assets to better understand your business’s total worth.
Some items often included in this valuation form include equipment, cash, patents, inventory, options, trademarks, real estate, stocks, and even customer relationships. Elements like customer relationships can be a little complex to estimate. Hence you should always hire a professional Nashville business valuation divorce attorney to help you with the task.
There are times when your appraiser will use relative valuations to help you come up with the total value of your business. To do this correctly, professionals will look for companies comparable to you and see how much they will sell for. These businesses must be as close to yours as possible in terms of their activities, size, equipment, etc.
If they are not similar, it can be complex to come up with an approximate value for your business. However, if they are identical, it could provide you with a much better price for the property and be used for your valuation.
Discounted Cash Flow Valuation
If your company’s profits are not expected to stay stable in the long run, a Nashville business valuation divorce attorney will use the discount cash flow valuation method. It will help you take the future cash flows from your business and discount them to the current values. Having access to these numbers will make it easy for you to see how much your business can make in the future. It should give you an idea of how much your business should be valued today so that you can split the company properly during your divorce.
Future Maintainable Earnings Valuation
The overall profitability of your business in the future will depend on its current value. Future maintainable earnings valuation is the best method to value your business when you believe that the profits are more likely to stay stable in the future. A professional appraiser will evaluate the business expenses, sales, profits, and gross profits from the past three years to determine your future maintainable earnings. This form of valuation can help you get a better idea of what your business value today and what its earnings are likely to be in the near future.
Ensure You Work With An Experienced Nashville Business Valuation In Divorce Attorney For The Best Results!
Discovering business valuation in divorce can bring considerable changes to your business, so you must proceed carefully. Ideally, you should be able to keep your business, but you may have to give up other equally valuable assets to your ex to make up for the company. It can get quite complicated and is not something you should do on your own.
Our team has years of training and experience which enables them to help you make informed decisions. You must always consult a professional attorney like Helen Sfikas Rogers from Rogers, Shea & Spanos, so you have a better chance of getting what you want and feel you deserve. Call us at 888-521-9952 to learn more about business valuation in divorce or to book your appointment with us at the earliest.