Business Owners Suite · Business Valuation
Business Transition
Valuation is the number the rest of the plan is built on. It sets the buy-sell price, it sizes the funding, and it anchors what your estate will be measured against. A valuation established while everyone is at the table is a fact. A valuation argued after an event is a dispute.
The Structure
What it does
Independent valuation gives the agreement a price nobody has to negotiate under pressure, and gives underwriting a basis for the coverage amount the company is applying for.
What has to be true
A valuation is a snapshot. Companies that grow, take on debt, lose a major account, or add an owner have changed the picture. An agreement priced on a five-year-old number is priced wrong, usually against the family of whoever left.
Where it comes apart
Formula clauses written into old agreements often bear no relationship to what the company is worth now. Reviewing the valuation method, not just the number, is part of the annual review.
The best time to agree on what the company is worth is while every owner still has an equal chance of being the buyer or the seller.
Begin the Conversation
Thirty minutes, no presentation, no obligation. Bring the agreement if you have one. If you do not have one, that is a useful place to start.
Important: This page is general education. It is not legal, tax, accounting, or individualized financial advice. Buy-sell agreements, split dollar arrangements, deferred compensation plans, and trusts should be drafted by a qualified attorney, with tax treatment confirmed by a qualified tax professional. Life insurance policies contain costs, charges, limitations, exclusions, and conditions; coverage depends on underwriting and on the terms of the policy issued. Guarantees are backed by the claims-paying ability of the issuing insurance company. Video content is produced by the issuing carrier and is presented with attribution.