Business Valuation Guide (2022)

Format: Print Book
Product ID: 10038482-0007
ISBN: 9780808057109
The perfect resource to help you demystify the process of business valuation.
$749.00

Imagine a business where every new assignment is a unique case study in people, management, customers, risks, and rewards. In business valuation, no two companies are alike; nor do numbers and financial statements tell the whole story. Successful business valuators have to be detectives while sifting through the details of a company, and they need a diverse knowledge of finance, economics, law, marketing, and sales to do that. They must also be able to step back and see the big picture from the viewpoint of a buyer. It is this variety, and the intellectual challenges it provides, that makes business valuation both interesting and exciting.

It is a daunting challenge to find out how to get started in any new endeavor, and deciding to pursue business valuation is no exception. This guide aims to demystify the process by:

  • Teaching the concepts as well as the practical considerations one needs to be successful
  • Filling the need and hunger for more how-to information
  • Sharing up-to-date valuation methodologies, case law, and trends so that one may be fully conversant with clients, the courts, and the IRS

This guide also aims to help readers capitalize on the following demographic and societal forces that point to an increasing demand for valuation services.

  1. Aging population. Over the next 15 to 20 years, a massive transfer of intergenerational wealth will take place. Companies will need to be sold, turned over to management, or have their ownership transitioned through succession or estate planning.
  2. High divorce rates. High divorce rates are leading to a greater need for valuation services since the wealth in a closely held business is often the largest marital asset.
  3. High growth rate of small businesses. Small business creation has accelerated, leading to more sales, shareholder disputes, estate planning needs—and valuations.
  4. Increasing litigation. Increasing litigation due to divorces and estate taxation also fosters an increasing demand for business valuations.
  5. IRS challenges and contract work. The IRS is taking an increasingly aggressive role in challenging estate and gift tax valuations, particularly those that are poorly prepared. The IRS is also accelerating its practice of contracting valuation work to outside practitioners.

The following two professions are increasingly involved in the business valuation field and can quickly benefit from a further understanding of its issues.

Certified Public Accountants (CPAs). CPAs are rapidly trying to diversify practice sources of revenues beyond traditional audit and tax services, which are now priced like commodities. They are moving quickly to provide a variety of consulting services, business valuation being one of them. While divorce valuations have traditionally been the focus of CPAs preparing business appraisals, the involvement of CPAs in valuations for other purposes is growing.

Attorneys. Attorneys increasingly need to understand business valuation methodologies and be able to critique valuation reports. In estate planning, business valuation is the issue, and attorneys cannot rely on the business valuator alone. In an estate or gift tax valuation dispute where large dollars are potentially at stake, attorneys must understand and be able to articulate valuation issues because usually they alone must meet with the IRS examiner or appeals officer. Similarly, family law attorneys must be able to articulate valuation concepts to successfully cross-examine an opposing valuation expert. In the corporate realm, an attorney’s clients have to grapple with valuation issues related to buy-sell agreements, shareholder disputes, mergers and acquisitions, and the establishment of employee stock ownership plans, to name just a few.

All CCH® Publication purchases are considered final sale. If your order arrived damaged or was lost in transit please call 800-344-3734 Monday - Friday, 8 a.m. to 5 p.m. CT. to request a replacement.

More Information
Contributors George B. Hawkins, Michael A. Paschall
Product Type Publications
ISBN 9780808057109
Format Print Book
George B. Hawkins
George B. Hawkins George Hawkins, ASA, ABV, CFA, a Managing Director of Banister Financial, Inc. Business Valuations, is an Accredited Senior Appraiser (ASA) in business valuation of the American Society of Appraisers, is Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants (AICPA), and is a Chartered Financial Analyst (CFA) charter holder. Prior to founding Banister Financial, Hawkins served in corporate lending, risk management, and credit analysis positions with North Carolina National Bank (now Bank of America) and First Citizens Bank. Hawkins obtained a B.A. in Economics from the University of North Carolina at Chapel Hill and a MBA from Wake Forest University. Hawkins is co-author (along with Michael Paschall of Banister Financial) of Business Valuation Guide, published by Wolters Kluwer, a book now in its twentieth edition (2019). He is formerly co-editor of CCH Business Valuation Alert, a national quarterly business valuation journal. Hawkins has published numerous articles in leading business valuation journals, legal and other publications on a wide variety of business valuation topics. Hawkins is a qualified business valuation expert in U.S. Tax Court, U.S. District Court, U.S. Bankruptcy Court, various state courts, the North Carolina Business Court, and in arbitration hearings for estates/gifts, divorce, dissenting shareholder litigation, business damages, and bankruptcy. Hawkins has been appointed more than 80 times by courts as an independent business appraiser in disputes and divorces and is routinely engaged jointly by opposing parties to resolve business valuation disputes. Hawkins has appeared on behalf of taxpayers before the IRS on business valuation issues, and has been retained by the United States Justice Department to value business interests in estate tax matters. Hawkins has also served as an advisor to a United States Federal Magistrate on business valuation issues. Hawkins is one of an elite group of 28 Charter Members (the only one in the Carolinas) of the Forensic and Business Valuation Services Chapter of the AAML Foundation, affiliated with the American Academy of Matrimonial Lawyers (AAML). The AAML is the nation’s premier organization for highly experienced attorneys practicing family law and consists of 1,600 of the best divorce lawyers in America. Charter Members were selected on the basis of their national reputation and achievements in business valuation, litigation support and forensic accounting, their history of serving AAML members and their clients in complex financial matters during divorce proceedings, and their commitment to integrity in the process. Hawkins is a frequent speaker on business valuation to national conferences, including the Business Valuation Conference of the American Society of Appraisers (ASA), the Business Valuation Conference of the American Institute of Certified Public Accountants (AICPA), the Judicial Section of the American Bar Association, the American Bar Association-American Law Institute, the National Trust Real Estate Association, and to various law schools. Hawkins has also served as a panelist and a moderator in various national teleconferences and webinars for business appraisers. Hawkins served two three-year elected terms as a member of the Business Valuation Committee of the American Society of Appraisers (ASA), the governing body of the ASA’s business valuation discipline. He also served six years as the head of the Business Valuation section of the International Board of Examiners of the ASA, which reviews business valuation reports for competency by candidates seeking accreditation. Hawkins previously served eight years as an Advisor and an Examiner to the Board, and was named Examiner of the Year one of those years.

Michael A. Paschall
Michael A. Paschall Michael Paschall, ASA, ABV, CFA, JD, a Managing Director of Banister Financial, Inc. Business Valuations, is an Accredited Senior Appraiser (ASA) in business valuation of the American Society of Appraisers, Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants (AICPA), and is a Chartered Financial Analyst (CFA) charter holder. Prior to joining Banister Financial, Paschall held positions in credit analysis and trust investments for First Union National bank (now Wells Fargo Bank), where he valued a wide variety of privately held companies and partnerships. Paschall obtained a B.A. in English and Economics from the University of North Carolina at Chapel Hill and a J.D. from Wake Forest University Law School. Paschall is co-author (along with George Hawkins of Banister Financial) of Business Valuation Guide, a book now in its twentieth edition (2019). Paschall was also formerly co-editor of Business Valuation Alert, a national quarterly business valuation journal. Paschall has also authored articles on business valuation topics for leading professional publications. A frequent speaker, Paschall has served as a guest lecturer at Wake Forest University School of Law and has spoken at the Business Valuation Conference of the American Institute of Certified Public Accountants (AICPA), the Business Valuation Conference of the American Society of Appraisers (ASA) and the National Trust Closely Held Business Association. Paschall also has spoken to numerous local, regional and statewide sections of various Bar Associations in the Southeast. Paschall has also served as a panelist in various national teleconferences on valuation for business appraisers. Paschall is qualified as an expert witness in business valuation in various state courts and arbitration matters and has been appointed as an independent appraiser by the courts. Paschall has been retained by the United States Justice Department to provide consulting expertise on business valuation issues in the healthcare industry. Paschall has previously served as Chair of the Ethics Committee of the American Society of Appraisers and as an Advisor to the Society's International Board of Examiners (Business Valuation Section). This Board approves candidates for accreditation by reviewing submitted business valuation reports for technical competency. Prior to his role as an Advisor, Paschall served as an Examiner for the Board of Examiners.