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Valuation
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LDV
Capital Management is adept in the Valuation arena. We feel in
order to give sound Investment Banking advice, the proper
valuation of the company has to be adherent. LDV Capital
Management will work closely with your company and assess it in
a manner where you can understand completely what the true value
of your company is. Business valuation is a process and a set of
procedures used to determine the economic value of an owner’s
interest in a business. Business valuation is often used to
estimate the selling price of a business, resolve disputes
related to estate and gift taxation, divorce litigation,
allocate business purchase price among the business assets,
establish a formula for estimating the value of partners'
ownership interest for buy-sell agreements, and many other
business and legal disputes.
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Before the value of a business can be measured, the valuation
assignment must specify the reason for and circumstances
surrounding the business valuation. These are formally known as
the business value standard and premise of value.
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Business valuation results can vary considerably depending upon
the choice of both the standard and premise of value. For
example, a business buyer and seller may bargain to establish
the value of business assets that approaches the fair market
value standard.
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However, the value conclusions based on the going concern
premise and that of assemblage of business assets may be quite
different. One reason is that an operating business creates
value by means of its ability to coordinate its capital, human
and management resources to produce economic income. The same
set of assets not currently used to produce income is generally
worth less.
Business people may need to conduct business valuation for a
number of reasons including sale, estate tax planning, estate
tax valuation, divorce, business purchase price allocation,
collateral documentation, litigation and documenting that a
sales price is equitable.
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