Business Valuation

ClawsonGroup's business valuation experts have performed hundreds of valuations of privately held businesses engaged in almost all industries. These companies are located in all regions of the United States, and in South America, Europe, Africa and Asia. Our business valuation services have been utilized for the following purposes:

  • Mergers and Acquisitions
  • Employee Stock Ownership Plans (ESOPs)
  • Stock Option Valuation
  • Phantom Stock Valuation
  • Dissident Shareholder Actions
  • SEC Disclosures
  • Buy/Sell Agreements
  • Litigation
  • Bankruptcy
  • Subchapter S Election
  • Gifting
  • Estate Tax Filings
  • Divorce

ClawsonGroup's valuations are meticulous and comply with guidelines promulgated by the following agencies and organizations.

  • Internal Revenue Service's Revenue Ruling 59-60
  • Uniform Standards of Professional Appraisal Practice (USPAP)

To determine the value of a privately held company, we consider a number of factors, including the Company's net assets, revenue, earnings and cash flow. In addition, we interview key employees, perform extensive financial and industry analysis relevant to the Company, and consider the following information, if available:

  • The history of the Company and the nature of the business;
  • Financial statements for the preceding five years;
  • Interim financial statements for the current year;
  • Tax returns for the preceding five years;
  • Projections or forecasts for the next one to five years;
  • Business and marketing plans;
  • Composition of client base;
  • Identification and assessment of competition;
  • Prior offers to sell or merge the Company.

We also consider the prices of stocks of publicly held companies performing the same or similar services as the subject company. As a generalization, the prices of stocks which are traded in volume in a free and active market by informed persons best reflect the consensus of the investing public as to what the future holds for the corporations and industries represented. Research will also be performed to identify if any privately held companies providing similar services have been recently sold. Our reports are extensive and generally contain the following information:

  • Executive summary
  • Definition of fair market value
  • Company background
  • Current economic conditions
  • Industry conditions
  • Competition
  • Financial analysis
  • Ratio analysis
  • Valuation methodology
  • Valuation analysis
  • Marketability discount analysis
  • Minority interest discount analysis
  • Value conclusion