Business Valuation vs. Estimate of Value

In some cases, a full business valuation is not needed, but rather an "estimate of value". A comparison of the difference between a business valuation and an estimate of value is as follows:

  Business Valuation Estimate of Value
Primary use Formal (Court, 3rd Parties) IRS, Internal use
Gift/Estate Tax Returns All Most
Variety of Methods Several Several
Standard of Value Fair Market Value Fair Market Value
Detailed Report Issued Yes Yes
Discounts Addressed Yes Yes
Upgradeable No Yes, to formal valuation
Average Client Cost $7,000 $2,500-$3,500

Our consultants have researched the IRS and valuation standards in order to make sure the "estimate of value" meets the requirements of the client. Best of all, due to the "upgradeable"nature of the EOV, it allows the client or his attorney the necessary information to obtain an idea of the value of the company without having to invest in the cost of a full valuation report.

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