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Helping Business Owners Understand Valuation Approaches

By Sidney Kess and Edward Mendlowitz
CPA Journal
November 2017 Issue

Individuals who own businesses frequently need to have the business valued. Sometimes it is for a specific purpose, such as for postsale retirement planning; other times, it might be because of estate tax planning, for the acquisition of shares by a co-owner, or for inclusion in a financial statement. Whatever the reason, there are many ways a business can be valued short of an actual sale.

This article describes various ways a business can be valued. Most of the needs fall under the umbrella of financial planning, and this article provides a guide to CPA personal financial planners on how to have preliminary discussions with business owners about the valuation process and how it works. This article will not explain how to calculate the value, which is best done by a trained and licensed professional.


Published with permission from the CPA Journal.

Click here for the full article.