The McKelvey Group has extensive experience performing formal business valuations for small and mid-sized businesses.
We follow the Uniform Standards of Professional Appraisal Practice (USPAP) with every valuation engagement. Our experts include Accredited Senior Appraisers with the American Society of Appraisers (ASA) and Master Certified Business Appraisers (MCBA) with the Institute of Business Appraisers. TMG performs Business Valuations for the following purposes:
“ Eagle Management Group has worked with the McKelvey group on several projects. The valuations have always been responsive and insightful, but more importantly, what we can always count on is their helpful insights that go well beyond the numbers.” - Douglas H. Holly, Principal & Owner, Eagle Management Group
Douglas H. Holly, Principal & Owner, Eagle Management Group
“The McKelvey Group has been a true partner and advisor throughout our years of partnership, and we know we can always count on them to deliver the expertise that continues to drive our business forward.” - Brian Scott, CFO Mosaic ATM
Brian Scott, CFO Mosaic ATM
“The McKelvey Group has provided a business valuation for us each year to satisfy our ESOP requirements. They always make the process easy and provide a timely valuation. We've been very satisfied with the industry data and methods they use to value our business.” - Cheri Garvin, RPh, Owner & CEO, The Compounding Center
Cheri Garvin, RPh, Owner & CEO, The Compounding Center
ESOPs are qualified defined contribution retirement plans regulated under section 401(a) of the Internal Revenue Code. For privately-held companies, an annual independent business valuation is required. TMG has extensive experience performing ESOP valuations for new and existing ESOPs.
Privately-held companies that have stock option plans perform business valuations in order to price existing as well as newly issued stock. While a company can perform this valuation themselves, there is the potential for review by the Internal Revenue Service (IRS) or the Securities and Exchange Commission (SEC). In general, the SEC or IRS places a greater level of confidence in an independent valuation performed by a valuation expert at the time of the issuance.
Valuations for acquisition and sale are performed to provide business owners an opinion of the market value of a company for buyers and/or sellers. While there are other standards of value such as fair value, strategic value, or investment value, market value is the most common standard utilized. Our independent business valuation opinion can be used as a basis for a negotiation to agree upon an acquisition and sale price.
Business valuations can be important, or even required, when a company and/or shareholders engage in transaction. Whether for a minority shareholder buyout, shareholder exits, or for estate purposes upon the death of a shareholder, the valuation provides an independent and objective data point for the transaction.
Many business owners plan to sell their company in the future. And most business owners have an idea of the price at which they might like to sell the company. The problem is that many owners don’t know the value of their business today, much less what it may be in the future. Often business owners engage a valuation firm to provide a current opinion of value. Based on the current value, owners know the aspects of their business driving value and those hindering value. Armed with this knowledge, owners can correct their weaknesses and highlight their strengths to maximize the potential value of the company.
In certain situations, a transaction may be negotiated which is subject to the requirement of an independent fairness opinion. Whether for minority shareholders, majority shareholders, trustees, or board members, a fairness opinion helps determine if the transaction is fair to the stockholders from a financial perspective.