The Teal, Becker & Chiaramonte, CPAs, P.C. works with off-site valuation professionals that specialize in the valuation of closely-held businesses, including investment holding companies and professional practices. The certified business appraisers deliver the due diligence and detailed reports that meet the professional standards accepted by the courts, independent auditors and the Internal Revenue Service. With in-depth business experience and extensive training and certification the valuation team provides expertise on appraisals and business valuations.
Business Valuations
When you work with us for a business valuation or related service, you will benefit from our breadth of experience. We have a dedicated team of professionals who deliver accurate and thorough business valuations year round.
Gift & Estate Planning
It is the burden of the taxpayer to support the values utilized for estate and gift tax returns. Values transferred must be at “Fair Market Value” as defined by the Internal Revenue Service. Our reports render a fair market value opinion that meets all of the IRS standards including Revenue Ruling 59-60. Our valuation reports are also prepared in accordance with the highest professional standards including the Statement on Standards for Valuation Services (AICPA), as well as the Uniform Standards of Professional Appraisal Practice (The Appraisal Foundation).
Through research, continuing education, and by maintaining active roles in the various professional valuation and estate tax organizations, our valuation experts are knowledgeable about the most recent applicable tax court cases, legislation, related revenue rulings, and IRS Code sections. Our professionals possess an in-depth knowledge of all proven and accepted valuation approaches and methodologies. They provide objective analysis that is supportable and defendable, based on the latest market data and valuation industry guidelines.
Buy-Sell Agreements
Buy-sell agreements are legally-binding contracts among the business owners that spell out when, to whom, and at what price an owner can sell their interest in a company. Having an approved, pre-determined plan protects current owners, not to mention business operations, from adverse consequences in the wake of a trigger event. These agreements offer many benefits, including curtailing the risk of the business falling into the hands of outsiders. Having a TBC valuation expert assist in drafting your buy-sell agreement/provisions and developing a proper value ensures that the purchase price and/or formula will be a fair, unbiased financial representation of the ownership interest in question.
Financial Reporting
Financial reporting for valuations must comply with the standards set by the Financial Accounting Standards Board (FASB) and the IRS for all circumstances. The transfer of certain intangible assets may trigger a need for valuations that comply with those standards. The professionals at TBC are equipped to determine the fair value or fair market value in these special situations. We also support and conduct goodwill impairment analysis and testing.
Marital Dissolutions
Determining the value of a closely-held business or professional practice owned, in whole or in part, by one or both parties in a marital dissolution is a complicated matter. In recent years, great emphasis has been placed by the IRS and other professional organizations on defining requirements for qualified business appraisers. In addition, certain jurisdictional differences regarding standards of value, institutional versus personal goodwill, as well as the definition of what constitutes a marital asset, requires the assistance of professional expertise. The professionals at TBC have significant training and experience in valuing closely-held businesses and professional practices. We work closely with clients, attorneys, and other professionals to develop preliminary calculations for settlement negotiations and/or comprehensive valuation reports suitable for submission to the court. In addition, we provide other ancillary services including, but not limited to, developing Statements of Net Worth, conducting lifestyle and other forensic accounting analyses, assisting with settlement negotiations, conducting rebuttal analyses, and providing expert testimony.
Business Owner Disputes
Business owner disputes typically result from a minority owner who feels that he/she has not been treated fairly by those who have control of the entity. When a minority owner feels that the controlling owner is taking advantage of or mismanaging the company, a lawsuit frequently arises. In addition, lawsuits can also be triggered when an owner believes he/she has been financially mistreated or wrongfully squeezed out of the company altogether. Most jurisdictions have enacted oppressed shareholder or dissolution statutes to protect the minority owner(s) from the abusive power of the majority owner(s). Under such circumstances, different remedies require unique analyses. In the instance where the company will buy back the ownership interest from the oppressed or dissenting owner, a valuation of the ownership interest in the company, based on fair value standard, is required. Alternatively, where mismanagement of the company resulted in a dilution in value of the ownership interest, a different measure of damage needs to be undertaken. The valuation professionals at TBC have significant training and experience in valuing ownership interests relevant to business owner disputes. Additionally, our forensic accounting professionals are also utilized on these cases to investigate various allegations of one or both parties to the lawsuit, if applicable. We work closely with clients, attorneys, and other professionals to develop preliminary calculations for settlement negotiations and/or comprehensive valuation reports suitable for submission to the court.
Enhanced Earnings Analysis
The New York courts are unique in that they include the enhanced earnings related to certain attainments achieved in whole or in part during the marriage, such as professional degrees, advanced degrees, celebrity status and the like, as a marital asset subject to equitable distribution; whereas, no courts outside of New York take the same position. However, such analyses should be conducted within the unique and specific circumstances related to the holder of the attainment(s). It is important that the enhanced earnings analyses not be blindly applied simply because the individual’s earnings have increased during the course of the marriage or because the individual has completed additional education or training. At TBC, we have experienced professionals who can conduct an analysis of the enhanced earnings related to an individual’s attainments. In addition, we have the experience to undertake a customized nexus assessment, if necessary, to identify the connection, or lack thereof, between the attainment and the holder’s work and earnings history.
Succession Planning
When you are in need of succession planning, you need not look any further than to TBC. A comprehensive valuation is one of the cornerstones of the succession planning process. Without a good idea of what your business is worth, it is impossible to make informed planning decisions. Our team of professionals work in an objective, proactive manner to deliver measurable and sustainable results that you need for successful planning.
Business Transition & Succession Planning
There are a variety of options available when structuring a succession plan, and the sooner one is in place, the better. In crafting a business transition plan, goals must be clearly defined. The business owner(s) must take many factors into account when considering the options including, among others, business strength and savvy of the intended successors and the psychological and emotional impacts of any decision on employees and family members. Finally, all parties must be fully aware of the plan and embrace the plan. Whether you prefer to transfer your business to the next generation, develop an ESOP, sell to a third party, or liquidate, a successful transition will require a thoughtful and coherent transition/exit plan, developed with the help of the trusted advisors at TBC.
Mergers, Acquisitions and Divestitures
Our business advisory professionals work in an objective, proactive manner to deliver measurable and sustainable results. Whether you need to reengineer a business process, build a streamlined financial reporting system, require an expert opinion on an acquisition, or simply need to understand current opportunities, the TBC Business Advisory team can help.
Shareholders Buy/Sell Agreements
If you ask around, you are bound to hear some unfortunate stories about families or business partners torn apart by differences in how to efficiently exit or transition their business to its next stage. It is important to develop a plan to ensure this transition is a smooth one, even if it’s triggered unexpectedly; a buy-sell agreement, or language included in any corporate document, are fundamental tools to assist you through this process. The transition of your business, handled properly, should be a very rewarding and liberating experience. We welcome the opportunity to discuss all of your business planning, valuation and advisory needs.
Strategic Advisory Services
We provide a wide array of strategic advisory services that will be tailored to your specific and individual needs. We understand that the development and implementation of a systematic strategic planning process is integral to your organization’s success.
CFO/COO Advisory
Markets change, organizations evolve, and technology becomes outdated. Management must provide strategies and leadership to meet expectations for sustained growth, year after year. As a result, from time to time businesses are presented with challenges that require specialized assistance. To continuously improve performance, organizations require business advice and technical assistance to improve profitability, reduce expenses, and plan for the future. We offer consultation and advisory services to help you put these strategies into motion.
Distressed Company Advisory
When a company is experiencing financial problems, issues with vendors, banks, or sales, it is imperative that owners do not react impulsively; so as to avoid wasting resources and creating a more devastating situation. Instead, consider a second opinion; one that is objective and outside the business. This action may seem counterintuitive due to additional costs, but think of it as an investment in future profitability and success. Using trusted and experienced advisors in times of distress to objectively analyze your situation can be greatly beneficial to your company. We can also provide alternative solutions and action plans.
Performance Benchmarking
Performance benchmarking is a vital component for business development as it lets you understand and gives you clarity to discover what it takes to be the best in your area, and what it means to be a leader in your industry. This effective tool allows owners to identify key performance indicators and benchmarks prior to making strategic decisions. The advisory professionals at TBC can help you successfully develop and use this valuable analysis in your business.
Growth Planning
Every year business owners set new goals to retain customers, expand products or services and build their client base. But how often do owners of private companies sit down to devise a plan to build value in their company? The need for building value is in the present, not in the future when a partner is ready to move on, or a sole owner is ready to sell or transition the business. Developing a strategic and tactical plan to build value in the business can help owners plan ahead for their eventual exit. We are here to discuss the steps you can take today, to build value for tomorrow.