Planning
Business valuation
A business valuation is an estimate of what a business is worth, often based on fair market value, used for a sale, buy-out, gift or estate.
A valuation puts a dollar figure on a business. Owners need one when they sell, bring in a partner, plan succession or deal with an estate. Many valuations use fair market value, which the IRS describes for donated property as the price that would sell on the open market between a willing buyer and a willing seller.
A valuer reviews financial statements, such as the balance sheet and profit and loss statement, plus earnings and risk. The result is an estimate, not a sale price. The figure can also set the tax on a sale, as in capital gains. See the valuation section of the business advisory page.
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Sources
Talk to Wallace CPA
Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one.