Business Valuation Services for Transactions, Tax, and Disputes

There are three accepted methods of business valuation: the Income Approach, the Market Approach, and the Asset Approach. In our experience, a defensible valuation rarely relies on just one. Depending on the nature of the business and the purpose of the valuation (sale, litigation, estate planning, or shareholder dispute) we apply a combination of these methodologies to triangulate an accurate, court-defensible value.

• Income ApproachThe Income Approach values a business based on the present value of its expected future cash flows. We typically apply this method to established, profitable companies with a reliable earnings history, using a discounted cash flow (DCF) or capitalization of earnings analysis to translate projected performance into defensible present-day value.
• Market ApproachThe Market Approach values a business by comparing it to similar publicly traded companies or precedent private transactions. This method grounds the valuation in real-world transaction data, specifically what informed buyers and sellers have actually paid for comparable businesses, making it especially persuasive in litigation and negotiation settings.
• Asset ApproachThe Asset Approach values a business based on the fair market value of its underlying net assets. It's most relevant for asset-heavy businesses, holding companies, or liquidation scenarios, and is often used alongside the Income or Market Approach to validate the result.