A buy-sell agreement is a legally binding document that controls how a partner, member, or shareholder in a closely held entity may purchase the interest of another partner, member, or shareholder who withdraws from the entity. Mandating a business valuation within a buy-sell agreement safeguards fair and equitable treatment of all shareholders.
Business Valuation is necessary for a business owner in order to acquire a company, raise capital, or to plan for eventual exit.
A fairness opinion from an independent business valuation expert protects a company’s board of directors when acquiring another business or when selling either a business segment or an entire company. A&C’s fairness opinions are supported with in-depth research, detailed financial analysis, and documentation, providing clients with the guidance needed to move forward.
An independent business appraisal by a qualified appraiser is required for certain SBA loans. The primary objective of such a report is to help the financial institution determine if the business can viably repay the proposed loan amount. An accurate appraisal benefits both parties: the business owner(s) avoid assuming more debt than they can afford and the SBA lender gains reasonable assurance of the loan being repaid.