Business Valuation Services

Sacramento business valuation services

Every business needs a current business valuation on file because life is unpredictable, and change happens fast. An annually updated business valuation is one way to ensure that your business is prepared for whatever comes your way - from personal life changes to business expansion opportunities. At Q3 Business Services, we understand how important an accurate business valuation is and we’re here to help you check this task off of your to-do list.

In our Sacramento, CA accounting firm, we are skilled at creating business valuations for a variety of reasons. So, whether it’s for a prenuptial agreement, estate planning, a fraud investigation, or a merger, we have the resources and know-how to interpret your financial data with precision. Working closely with our clients, we compile a company history, survey your business finances, assess business tax information, account for tangible and intangible assets, liabilities, intellectual property, and more. This comprehensive approach allows us to provide you with a realistic and accurate valuation in the context of current market value for your industry. Our findings are carefully documented in a detailed report so that the information is at your fingertips when you need it.

Types of Value

Also known as Standards of Value, this refers to the definition of value used in a particular report. There are varying types and definitions including Fair Value and Investment Value but the most commonly used is Fair Market Value which can be defined as:

  • the price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.

Approaches and Methods to Business Valuation

There are distinct differences between approaches and methods. An”Approach” is a general way of determining a value indication of a business whereas a “Method” is within an approach and is a specific way to determine value.

Conceptually, there are three broad approaches to value each containing various business valuation methods:

  • “Asset Approach”…a general way of determining the value of a business based on the value of the assets net of liabilities using one or more methods such as the “Adjusted Net Asset Method”, the “Excess Earnings Method” and/or the “Liquidation Method”.
  • “Income Approach”…a general way of determine the value of a business using one or more methods that converts anticipated economic benefits into a present value single amount such as the “Capitalization of Earnings Method” or the “Discounted Future Earnings Method”.
  • “Market Approach (Market Valuation)”…a general way of determining the value of a business using one or more methods that compare the subject business to similar businesses that have been sold in the marketplace using a “Transaction Method”, Merger & Acquisition Method”, or “Guideline Public Company Method”.

Learn More about Business Valuations

Don’t put off getting this vital piece of information prepared for your business. Call us at 916-438-6964 now to request a free consultation.

  • Mergers and acquisitions
  • Selling a business
  • Buy-sell agreements
  • Litigation support
  • Fraud investigations
  • Business disputes
  • Estate planning
  • Tax planning
  • Insurance purposes