Business Valuation

Do you know what your company is worth? If not, you’re not alone. One of the most overlooked pieces of financial information by business owners is the value of their company. After all, it’s logical to assume a business valuation is unnecessary until an owner is ready to sell (or about to enter a situation like a corporate breakup). However, nothing could be further from the truth.

Our business valuation service (also known as a company appraisal) provides a snapshot of your company’s health at a given time. Studied as a whole, these snapshots can tell you where your company has been, where it is now, and—most importantly—where it’s heading. This is why it’s important to always know the value of your company.

The RPB Difference: Financial Modeling & Forecasting Expertise

We employ a team of dedicated business valuation CPAs accredited by the American Institue of CPAs (AICPA) and the National Association of Certified Valuation Analysts (NACVA), two industry-recognized organizations. In tandem with our tried-and-true company appraisal process (outlined below), our level of expertise in financial modeling and forecasting assures our clients that their valuation estimate is as accurate as possible. Here’s a look at our valuation process:

  1. Gather client financials. Here we collect financial documentation from the client, such as historical financial statements, tax returns, and depreciation schedules.
  2. Track documents. Since business owners may not have their financial documentation organized and named properly, we’ll set up a system that allows for easy access to—and tracking of—these important documents.
  3. Adjust financials. To better reflect the economic reality of the company, we’ll adjust the financials and construct an accurate relationship between required business assets, expenses, and levels of business income these assets are capable of producing.
  4. Financial analysis. Here we analyze ratios and perform common size analysis to judge the company’s performance.
  5. Choose a business valuation method (that is, either the income, market, or asset approach). Depending on the complexity of the valuation and the availability of various business and market data, we’ll use the valuation method that makes the most sense. In some cases, we’ll use more than one to cross-check results.
  6. Valuation report. In addition to expert advice, we’ll compile the business value into an easy-to-understand report. This document can then be leveraged by the business owner to make better strategic decisions moving forward.

A Wide Range of Industry Specialization

We understand industry experience is an important prerequisite to accurate valuations. More and more, businesses are looking for CPA firms with proven expertise within the industry they operate. At RPB, we’ve been serving a wide breadth of industries since we were founded in 1907, with particular specializations in non-profit and educational institutions. That being said, our most popular industries include:

  • Non-profit Organizations
  • Social/Country Clubs
  • Public School Districts
  • Choice/Charter Schools
  • Government & Municipalities
  • Closely Held Companies

To learn more about our experience in these industries, click here.

More Than Just a Company Valuation

We take company valuation a few steps further than other CPA firms. We understand that when savvy business owners approach us for valuation assistance, they want more than just a valuation. They want an adviser who’s going to provide unbiased perspectives, introduce new ideas, and consult them on ways to create value.

By knowing what motivates our clients and understanding how they perceive value and measure risk, we develop a working relationship to help place them in the most favorable position possible. The best results are achieved when clients continually seek to refine their processes.

Our firm believes planning is the key to continual refinement, which translates to increased profitability and financial security. We incorporate common sense, technical expertise, analytical capabilities, and tax strategies to help improve operations.

Our advisory services include:

  • Financial Projections
  • Buy/Sell Agreements
  • Litigation Support
  • Fraud Investigations
  • Identity Theft Controls
  • Valuations
  • Mergers & Acquisition
  • Exit Strategies
  • Business Succession Planning
  • Creation or Participation on Your Board of Directors