Business Interest Valuation

The key to effective resolution of estate planning, business disputes, divorce settlement negotiation, or stock transactions, is accurate business interest valuation. Without a ready market for these interests, estimates of value can be difficult to obtain. In the absence of available pricing information, interests in closely held business must be valued independently.

Adams Capital is experienced in selecting the most appropriate valuation approach based on a particular engagement’s circumstances. We typically consider the value of assets, liabilities, cash flows, similar publicly traded companies, and recent transactions involving similar companies.

In addition, the value of an interest in a closely held business can vary substantially based on its level of significance (controlling versus minority interest) and the degree to which its marketability is impaired (lack of a ready market versus an outright restriction on sale or transfer). We are knowledgeable in the selection and support of discounts and premiums in our determinations of value. We conduct our own proprietary discount and premium studies to better support our conclusions of value. Adams Capital has defended successfully its conclusions in acquisitions, divestitures, and mergers, both in court and before the IRS.

Our valuation conclusions provide the necessary support for business owners and their advisors to make well reasoned decisions regarding the purchase or sale of interests in closely held businesses.

Adams Capital’s professionals are experts in the valuation of such interests. Our backgrounds in finance, accounting, taxation, and law, and our experience with over 2,000 public and private transactions, allow us to provide credible valuation conclusions.

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