Business valuations serve many purposes. Valuations are often conducted to support business planning, accompany estate and gift tax reporting, assist in marital dissolution, determine share value for Employee Stock Ownership Plans (ESOPs), facilitate exit planning and value acceleration, and to aide in negotiation of the sale of the business. But not all valuations are created equal. The type of valuation engagement you need depends on its intended purpose. Knowing the difference can help your company use its resources wisely.

Full Valuation

In a full valuation, we consider the three valuation approaches (income, market, and asset) and express our opinion of the business’s value. Because third parties typically use these reports, the reports are generally long and detailed and include full descriptions of the business and our valuation procedures.

Choose a full valuation engagement when an official report is needed, such as for an ESOP, gift or estate tax return, or a court filing.

Calculation of Value

In a calculation of value, we discuss the extent and use of specific valuation approaches and methods to apply in arriving at a calculated value with the company’s management. Because of the limited approach, we don’t express our opinion on the value. Calculation reports typically aren’t appropriate for third-party reporting. Because of those limitations, a calculation report is usually much shorter than a full valuation report.

Choose a calculation of value for management planning purposes. A calculation of value provides the owners/managers with a good estimate of the business’s value but doesn’t entail as much cost as a full valuation.

Next Steps

Members of the Hantzmon Wiebel valuation team are specially credentialed in the valuation arena by the AICPA, reflecting their professional competence. Our training is enhanced by transactional experience, industry knowledge, and insight into the tax implications of deals, divorces, and disputes.

Contact our valuation professionals today, and we will help you determine which level of service is appropriate for your needs based on the purpose of the valuation.


Contact Us

© Copyright 2020 Thomson Reuters. 

Disclaimer of Liability
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability and fitness for a particular purpose.




Nonprofit Insights


Valuation Report