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Why is a Business Valuation Necessary?

Ownership interests often represent a significant asset of one’s estate and/or portfolio. However, the value of an interest in a privately held company, as opposed to stock in a public company, is usually unknown because there is no active market to sell or trade that interest. Business valuations are most commonly needed to calculate estate tax upon death, split up family assets in a divorce or negotiate value in a purchase, sale or merger of a business enterprise.

A business valuation can also serve as a good management tool. A prime objective of any business is to improve and maximize its value. A properly prepared business valuation provides management with insightful information that helps identify company strengths and weaknesses that affect value, allowing management to more effectively focus its energies in places that really count. Prepared on a continued basis, a business valuation also helps owners evaluate management effectiveness and overall progress towards their goals.

Why choose a CVA for your Business Valuation?

Requirements to earn the Certified Valuation Analyst (CVA) designation include being a licensed certified public accountant, completing NACVA’s five-day training program and successfully completing the association’s comprehensive examination. CVAs provide business valuation and litigation consulting services. They are uniquely qualified by virtue of the knowledge they have gained earning their CPA and CVA designations, as well as their experience in tax, auditing, accounting and financial analysis for small businesses.