Business Succession Planning
What is Your Business Worth?
Because most small businesses are not publicly traded, it is more difficult to determine the fair market value of these firms. The final value placed on a business for estate tax purposes is often determined only after long, tedious and costly negotiations with the IRS. One of the best ways to avoid an IRS challenge is to secure a qualified valuation from a certified independent appraiser.
Key Factors In Determining Business Value:
- Nature of the business and its history.
- General economic and specific industry outlook.
- Book value and financial condition of the business.
- Earning capacity of the business.
- Dividend-paying capacity.
- Whether the business has goodwill or other intangible value.
- Sales of stock and the size of the block to be valued.
- Market price of similar actively traded businesses.
Call today to set up your complimentary business succession consultation! 916-536-1384
Thomas B Hammond is based in Fair Oaks, California but we service business owners with succession planning anywhere in California, Nevada, and Oregon.
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