DM&A performs valuation analyses of privately held businesses and business assets for a wide variety of purposes, including:
- Ad valorem tax
- Buy-sell agreements
- Charitable contributions
- Corporate or partnership disputes
- Employee stock ownership plans (ESOPs)
- Estate and gift tax
- Financing and recapitalization
- Internal management planning
- Mergers, acquisitions, and divestitures
- Purchase price allocation
- S-Corporation tax elections
DM&A appraises businesses for purposes of determining the going concern value of the business enterprise or the value of the components of its capital structure. We value various types of capital, such as common and preferred equity, restricted stock, voting and non-voting stock, stock options, and convertible debt. We often analyze the relevant discounts that should be applied, taking into consideration the value implications of relative control and marketability, to individual ownership interests in going concerns.
In addition, DM&A values specific assets possessed by business entities. These assets include various intangibles such as goodwill, customer lists, intellectual property, patents, trademarks, and rights to receive royalties. Moreover, our expertise in the valuation of tangible assets supplements our overall business valuation capabilities.
The process of valuing a business and its associated assets involves intense data gathering, both from within the company being valued and from external sources. We interview key members of management and ownership, tour the business’ primary facilities, and thoroughly review historical and projected financial statements. Furthermore, we analyze the environment within which each business operates for its impact on value. We study the economy, industry, and competitive forces to ascertain the business’ market position and future growth potential. Finally, we research the marketplace to understand the valuation ratios and rates of return appropriate for each business within the context of its industry and inherent risk profile. Our extensive level of investigation enables our principals to confidently present valuation conclusions to our clients and in more formal settings such as trials, mediations, and arbitrations.
Our business valuation assignments span a wide range of industries. Upon request, we will provide a list of the specific industries in which we have performed appraisal assignments.
DM&A has worked for a variety of clients, including attorneys, private business owners, financial institutions, government agencies, and multinational corporations. Specific client lists and references are available upon request.