Business valuations and appraisals are crucial to the overall process and success of buying/selling a business and securing financing for the transaction. At CIB Associates our philosophy is that these services should be done by the best in the business. Thus, we have developed and have maintained for a long time strategic business partnerships for these services. For business appraisals, we refer our clients to our strategic business partner Gulf Coast Financial. ( Link ) For complex business valuations, we refer our clients to our strategic partner Chaffe & Associates.
Gulf Coast Financial is the premier business appraisal company in the United States. Many large lenders like CIT, the largest SBA lender in the United States, mandate that only Gulf Coast do appraisals on their business acquisition loans. Their appraisals are exhaustive, using up to nine different valuation formulas with a composite valuation derived from the formulas. Gulf Coast’s fees for their appraisals are exceptionally reasonable and inexpensive, especially when compared to their competitors.
Gulf Coast can perform the following professional services to meet your appraisal objectives.
Letter of OpinionDepending on the purpose, this report can range between 7 and 25 pages. The final document will contain a formal cover letter outlining the purpose of the opinion and valuation conclusion, followed by supporting financial exhibits.
Value AnalysisA 30-35 page financial based valuation summary using general valuation techniques and industry rules of thumb. Should be used primarily for small businesses and for business owners looking for a general range of value.
Formal Business Valuation (Limited Scope)This limited scope valuation provides a thorough analysis of the Income Statement and Balance Sheet, Common Size Analysis, Comparable Transactions, Industry and Economic Review and is intended for financial buyer transactions.
M&A ValuationA USPAP Formal Narrative intended for stock valuations, the valuation of large companies and strategic mergers & acquisitions. A complete financial and operational review.
IRS Revenue Ruling 59-60A USPAP formal narrative intended for litigation, which focuses on US court Reviews, Cited Court Precedents, and in-depth analysis and research of minority and marketability discounts. Intended for Estate Tax, Gift Tax, ESOP’s, Divorce, and any situation requiring litigation.
Chaffe & Associates is exceptionally well known for its expertise in valuations of large sophisticated, complex companies that are publicly traded and in particular those public companies that are stock exchange listed.
Chaffe & Associates has expertise and experience in valuing intellectual property and intangible assets and in determining the useful economic lives over which definitive lived intangible assets, excluding goodwill, should be amortized. Chaffe & Associates valuation authorities are recognized as expert witnesses in Federal, State, Local and Tax Courts.
An employee stock ownership plan (ESOP) is a complex concept to design and implement. Meeting all of Federal requirements and tests of fairness requires a comprehensive knowledge and experience in designing and implementing ESOP’s. Chaffe and Associates can be an invaluable resource in regard to ESOP’s.