How much is your business worth? If your business is closely held, this question may not be easily answered. Historically, the valuation of closely held companies was more of an art than a science. Today, thanks to a better understanding of the complexities involved in valuing closely held businesses and the development of accrediting bodies, there is now less guesswork and more scrutiny. In order to answer the question of your company’s worth, Turlington and Company, LLP has two Certified Valuation Analysts, as accredited by the National Association of Certified Valuation Analysts (NACVA), on staff.
The Certified Valuation Analyst is the premier accreditation for CPAs who, for many reasons, are uniquely qualified to provide business valuation and litigation consulting services. As a general rule, CPAs, through their extensive training combined with experience in tax, auditing, accounting for small businesses, and financial analysis, have an excellent background for dealing with the complexities involved in providing valuation services. Few professionals provide the breadth of experience and development the public accounting profession produces, and thus, a CVA is the preferred choice in selecting the right valuation professional to serve your needs.
To become accredited by the NACVA, the candidate is required to successfully complete an intensive training and testing process. An initial requirement to becoming a Certified Valuation Analyst is that the applicant be a licensed Certified Public Accountant (CPA) registered in his or her home state. Implicit in this requirement is that the CVA maintain at least a minimum number of hours of continuing professional education (CPE) each year and conduct him or herself within the ethical mandates established by the profession. NACVA also requires CVAs to obtain at least 12 hours of CPE each year in areas related to business valuation and/or litigation consulting, and periodically participate in programs sponsored by the association promoting quality and adherence to industry standards.
Business valuations are most commonly required in conjunction with any of the following situations:
- Adequacy of life insurance
- Bankruptcy and foreclosures
- Buy/Sell agreements
- Charitable contributions
- Eminent domain
- Employee stock ownership plans (ESOPS)
- Estate and gift taxes
- Franchise valuation or evaluation
- Gifting programs
- Incentive stock option programs
- Initial public offerings
- Liquidation or reorganization
- Mergers or acquisitions
- Sale of a business
- Split-ups or spin-offs
- Succession planning
- Partner disputes/dissenting shareholder situations
For more information about our firm’s business valuation, litigation support, and related consulting services, contact Greg Turlington, CPA, CVA or Scott Hummel, CPA, CVA at (336) 765-2410 for a consultation.