Business Valuations
With a Transaction Business Valuation Attorney
Valuation, generally speaking, is the process of assigning or determining the value of a property, asset, product or company.
Value of Business – An Absolute Estimate
Business Value or the fractional interest value of a particular business is usually determined for audit and tax purposes, share holdings and for mergers and or acquisitions. It is the amalgamation of the financial records of the company, asset and property value and the share value of the company, as well as determining value based on projected profits.
Fair price and its Derivatives
Fair price is an unbiased and definitive estimate of the potential worth of a business, asset or service in terms of market value. The fair price is subjective to key factors such as
- ROI (Return of Interest) on capital
- Utility value
- Risk benefits
- Outlook
- Competition
- Growth
Fair price may or may not be equal to the market price depending on the behavioral anomalies. Hence fair price is determined by an infallible 3-level framework that judges and estimates the appropriate fair price with all variables, liabilities and market observables taken into consideration.
How can an Efficient Attorney help?
An attorney‘s involvement and role in business valuations is multi-faceted and oftentimes absolutely necessary. An experienced attorney can be a great asset in a business transaction not only in evaluating the business fairly, but also providing a security cover to both the buyer and the seller involved in the transaction through contracts and other legally enforceable tenets.
Transactional Attorney- Right hire for a valid Business Transaction
An attorney can serve one of two roles in the valuation: 1. By representing one party’s interests; or 2. By acting as a transactional attorney.
Hiring a competent transactional attorney will only make the process of transitioning smooth and without any legal hitches. A transactional attorney is important to facilitate the transaction, to answer questions, and help in avoiding the business transaction to crumble.
- A transactional attorney is a registered attorney with business law expertise. They specialize in niche transactional skills such as drafting, vetoing and execution of documents for business mergers and real estate deeds. They are also well versed in paperwork required for acquisition of property or business, transfer of intellectual property and purchase/sale agreements.
- The transactional attorney can provide advice during transaction meetings and will prevent the client from steeping into any liabilities or legal pitfalls in accordance with the transaction. The lawyer will also spot irregularities in the contractor in the transaction clauses and advice the client to cover all disclaimers during the initial discussions to avoid any issues later.
- A capable transaction attorney will ensure proper drafting and documentation of all paperwork that states the intentions and facts of the client‘s business precisely and is in tandem with the local law and customs.
- A business transaction attorney can assist you navigate potentially risky areas and can literally save you from shutting shop.
- If you as a seller are on the verge of bankruptcy, a good transaction lawyer can ensure you declare your bankruptcy in the most beneficial way and not lose any more money that you have already lost and have a fighting chance of retaining or regaining your property.
- The transactional attorney can hold money in trust and disburse only upon unanimous agreement of the parties.
Last but not the least, a transaction attorney is the best resource for a proper valuation.
Maurice Arcadier is both a certified lawyer and holds a Master in Business Administration. Whether you chose Arcadier, Biggie, and Wood, PLLC to handle your transactional and valuation legal needs, or choose another law firm, make sure to ascertain the experience of the attorney who will be representing your interests. Experience does count. The main law firm is located in Melbourne, Florida, and represents clients through the State
