We perform valuations of businesses, interests in businesses, intangible assets, oil and gas rights and other interests in oil and gas properties.

 

Valuation Services

Our Approach to Valuation Services

We perform valuations of businesses, interests in businesses, intangible assets, oil and gas rights and other interests in oil and gas properties. Our valuations are used in many different situations. Inevitably, when valuations are needed, the need relates to matters with a high degree of importance to a client, whether that be for a purchase or sale of a business, disputes in or outside of litigation, a death of an owner, estate planning, gifts to family members, succession planning, to meet income tax or financial reporting requirement, or another purpose.

We are experienced in valuations involving businesses of all sizes, in a wide range of industries, and in different stages of development. We have partners and managers who are accredited as certified valuation analysts and who are not only experienced in preparing business valuations but who have substantial experience in acquisitions and divestitures of businesses. As a result, we bring perspectives and insights to valuation projects that reflect our transactional experience. We possess extensive technical resources, conduct comprehensive industry analysis, and prepare informative, well-supported valuation conclusions. We learn what makes your business tick.

We learn about your operations, meet with your key employees, understand your customer and supplier relationships, conduct economic and industry research, assess strengths and weaknesses of your business and assess associated investment risks. We gain an understanding of your future business plans and prospects. We perform analysis of your historical financial results to determine how those results should be normalized to arrive at an accurate picture of the economic income of the business from an investor’s perspective. We may make you think about things you haven’t considered before.

By choosing Sisterson, you can be confident that a valuation is thorough and complies with accepted valuation standards including those established by the Internal Revenue Service. Our valuations will reduce questions and minimize the risks of subsequent disputes or legal challenges. Valuation analysis by our independent and credible professionals will help you avoid biases that often occur due to personal or emotional issues and that can inappropriately influence your decisions. We stand behind our valuation reports. Having Sisterson prepare a valuation may be one of your wisest moves.

Our Commitment to Valuation Services

Sisterson has made a substantial commitment to providing valuation services for business interests, intangible assets and various other assets.  Our commitment is exhibited through the following:

  • Numerous partners and other professionals have studied for and earned the Certified Valuation Analyst (CVA) designation. In addition, various Sisterson & Co. LLP personnel are members of the Forensic and Valuation Services Section of the American Institute of Certified Public Accountants and the National Association of Certified Valuators and Analysts.
  • Our CVAs possess backgrounds in tax, accounting and auditing, and finance and are also Certified Public Accountants (CPAs). Additionally, some of our professionals have obtained other professional designations, including Certified Fraud Examiner, and have participated in committees of the Pennsylvania Institute of Certified Public Accountants and National Association of Certified Valuators and Analysts (NACVA) that deal with litigation, forensic accounting, and valuation matters.
  • We maintain an extensive library of books and newsletters, software and other resources regarding valuation matters, have economic and industry research capabilities, and utilize software databases to identify and analyze sales of businesses and to perform benchmarking analysis regarding businesses and assets such as intellectual property.

CVAs are professionals committed to high standards of expertise and excellence through the advancement of technical skills and knowledge in financial and business valuation theory and practice.  The CVA designation is a statement to the business, professional and legal community that an individual is qualified, through academic and practical experience, to meet the high standards and professional expertise required by the NACVA for providing business and intangible asset valuation services.  The NACVA recognizes exemplary skills and knowledge upon a member’s successful completion of a rigorous training and testing process by bestowing the professional designation of CVA.

In order to maintain the CVA designation, CVAs are subject to recertification requirements through a combination of activities, including periodic continuing professional education in valuation, forensic accounting and litigation support; participation in NACVA recommended training programs; authorship and instruction; and qualifying experience.

Types of Services

Our valuation services include valuation engagements, calculation engagements, and consultation regarding valuations and related matters.

A valuation engagement results in a conclusion (i.e., an opinion) of value.  It results in the issuance of either a detailed report or a summary report.

A calculation engagement results in a calculated value (i.e., no opinion). We are required to reach agreement with our client on the valuation approaches and methods we will use and the extent of procedures we will perform to calculate the value of a business or an interest in a business. These procedures are more limited than those for a valuation engagement.

There are also a wide range of situations in which clients consult with us about strategies for using valuations and other aspects of valuations. In some cases, such consultations can be a precursor to a valuation engagement.

Situations Where Sisterson Can Help

Valuation services can be used to address individual and business needs in a variety of situations, including the following:

  • Adequacy of life insurance
  • Allocation of acquisition price for income tax purposes
  • Acquisitions or divestitures of businesses
  • At value financial reporting
  • Buy/sell agreements
  • Bankruptcy and foreclosures
  • Charitable contributions
  • Compensation expense determination for financial reporting purposes
  • Compliance with Internal Revenue Code for employee stock grants, including Section 409A
  • Corporate property distributions to shareholders
  • Eminent domain
  • Employee stock ownership plans (ESOPs)
  • Estate and gift taxes
  • Fair value of acquired assets for financial reporting purposes
  • Franchise valuations
  • Gifting programs
  • Impairment of goodwill and other intangible assets for financial reporting purposes
  • Incentive stock option programs
  • Intellectual property licensing
  • Litigation support
    • Disruption of business
    • Dissenting shareholder actions
    • Divorce
    • Economic loss analysis
    • Intellectual property infringement
    • Owner disputes
    • Wrongful death
  • Liquidation or reorganization
  • Loan loss exposure assessments based on borrower’s business value
  • Loans from SBA lenders use to acquire a business
  • Mediation and arbitration
  • Mergers of businesses
  • Sale of stock or other ownership interests
  • Split-ups or spin-offs
  • Subchapter S elections