A good example of a fairly well-defined business valuation engagement is when a valuation is needed upon the death of the owner of a business. Whatever stock the owner had in the business needs to be valued for estate administration and to help determine any estate taxes. The valuation would be done as of the date of death (or six months after—i.e., alternative valuation date) for the exact shares owned. Our valuation product would be a written report that could be attached to an estate tax return and is done for a fixed fee.
A good example of a potentially less well-defined business valuation engagement is when a business valuation is needed for a divorce. In a divorce with a business as one of the key assets in the marital estate and a goal of settlement as opposed to going to court, an hourly consulting engagement may make the most sense. If the other side has hired a valuation expert who has completed a written report, you may want to hire us at an hourly rate to review the other expert’s report for reasonableness.