Business Valuation: Case Studies

Our business valuation professionals are called upon to assist in the sale or purchase of a business, to advise on the terms of shareholder agreements, and to determine an appropriate value in litigation. Below are situations where our services were used. Well Drilling Service A family owned and operated business was negotiating the sale of its well drilling division to one of its employees. We were engaged to prepare an independent valuation of the business and to provide advice on the terms of transfer, to structure favorable tax consequences, and facilitate the financing of the acquisition. Strategic Consulting Practice We advised our client, a closely held consulting organization, on the implementation of shareholder agreements to facilitate the orderly transition of ownership while minimizing tax consequences. Our services included a valuation of the business and a pricing formula for the exchange of shares between shareholders. Environmental Engineering Business Our client desired to reward key employees through the issuance of equity. We prepared a valuation of the business and advised our client on the terms of the shareholder agreement to minimize tax consequences, maintain control, and provide for the orderly transition of the business. Dental Practice In connection with a divorce action, we prepared a valuation of a dental practice. Our report included a discussion of the practice’s operational history, financial analysis, and valuation. The practice’s value was determined using the capitalization of earnings method. Physician Practices We have prepared numerous practice valuations involving the acquisition and divestiture of physician practices by hospitals and physician groups. Specialty Periodical As part of a divorce action, this specialty business newspaper required a valuation. Our report included a discussion of its business history, financial analysis, and valuation. The value of the business was determined using the discounted cash flow method.

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