SERVICES - Big Sky Business Valuations

Tax-Related Valuations

Big Sky is accredited by the National Association of Certified Valuators and Analysts (NACVA) and provides certified, detailed valuation reports that comply with NACVA’s Professional Standards as well as Revenue Ruling 59-60, which assists the taxpayer in complying with the good faith provision of Internal Revenue Code section 6662 (The Substantial and Gross Valuation Misstatement Penalty).

Estate Planning and Taxation

Knowing the value of your business will enable you to arrange sufficient liquidity (usually via life insurance) to cover estate taxes. A detailed valuation report should accompany the actual estate tax return when that time comes.

Gift Taxation

Should a business owner or shareholder gift a portion of his or her shares, a detailed valuation report should accompany the tax return for the year of the gifting.

Charitable Contributions

In the event a business owner or shareholder donates a portion of their shares to charity, a detailed valuation report should accompany the tax return for the year of the donation.

409A Valuations

The IRS requires a valuation report prior to an issuance of company stock or stock options. This includes securities reserved for owners and employees.This should also be a detailed report.

Partnership or Shareholder Changes

Partnership buyouts or additions are common, but can be costly to either an outgoing or incoming partner if they are not well versed in valuing private companies. An independent business valuation can ensure a correct price is paid or received.

Buy-Sell Agreements

Big Sky Business Valuations recommends attorneys and their clients integrate an independent valuation into buy-sell agreements to ensure all parties pay or receive the correct amount should a triggering event occur. Big Sky can work with your attorney in structuring buy-sell agreements that will lead to just and correct valuations rather than just settling on book value, which can have a severely negative financial impact on one or more parties.

If a buy-sell agreement stipulates updates, annual or otherwise, Big Sky Business Valuations will perform them at a significant discount to its initial valuation.

Minority Shareholder Transactions

If you are faced with the need to buy out a minority shareholder or are contemplating adding one but are unsure how to approach the discounts for lack of control (DLOC) and lack of marketability (DLOM), Big Sky Business Valuations has experience with both and can perform a valuation that includes them.

Other Valuations

Sales, Divestitures, Mergers and Acquisitions

When considering the sale of your company or any another business transaction, a valuation provides the information necessary to make an informed decision.

Small Business Association (SBA) Loans

The SBA’s 7(a) primary loan program enables entrepreneurs to procure funds for working capital, fixed asset purchases or purchasing an entire business. The SBA stipulates that a “qualified source” must produce the valuation. Big Sky Business Valuation’s accreditation from the NACVA fulfills that requirement.

Intangibles

Valuing intangibles such as intellectual property or legal rights (e.g., contracts, leases, easements, and mineral rights) is frequently required for business separation, tax, or litigation support purposes. Oftentimes, less used valuation approaches like the royalty method are needed to determine an accurate value. Big Sky Business Valuations is able to apply any valuation method necessary to complete these challenging assignments.

Marital Dissolution

Business ownership is often the largest asset involved in a divorce. Preparing a certified business valuation ensures both parties are treated justly. Big Sky Business Valuations can also testify as an expert witness if needed.

Business Litigation

The requirement for a business valuation arises in many different types of litigation such as taxation, shareholder suits, damages resulting from infringement, and estate litigation to name just a few. When involved in litigation, it is prudent to utilize an accredited business valuator, as a certified valuation adds credibility to your case. In addition, Big Sky Business Valuation can testify as an expert witness as necessary.

Investment Considerations

If you are contemplating an investment in a private company, but are unsure how much to pay per share given your minority status and the lack of marketability inherent in such a business, Big Sky Business Valuations can work with you and your attorney to ensure these issues are appropriately addressed.

Fairness Opinions

In addition to business valuations we also offer fairness opinions. An indicator of the care exercised by a board of directors in mergers and acquisitions, a fairness opinion is an opinion provided by an outside advisor that the consideration to be paid (or received) in a transaction is fair from a financial point of view to the party paying (or receiving) the consideration.