Business Valuation vs. Estimate of Value
In some cases, a full business valuation is not needed, but rather a calculation of value. A comparison of the difference between a business valuation and an estimate of value is as follows:
| Business Valuation | Calculation 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 | $8,500 | $3,500-$4,500 |
Our consultants have researched the IRS and valuation standards in order to make sure the calculation of value meets the requirements of the client. Best of all, due to the "upgradeable" nature of the COV, 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.
