What Are Business Valuation Services? Top 10 Business Valuation Services In 2023
Business valuation has different purposes; where there is a purpose, there is a business. As expected, there are many business valuation services allowing small and large-sized businesses to get an accurate valuation of their worth in the market.
A business must undergo a valuation process when going through – merger & acquisition/(M&A) transactions, estate planning, Fairness Opinions, ESOP (employee stock ownership plans), litigation, and more.
Indeed there are different methods for evaluating a business. Some of them would include analyzing its book value, times revenue method, market cap, earning multipliers, and so on. Clearly, it may seem like the tip of an iceberg, but that is what it is – the tip of the iceberg. Ninety percent of the process and operation take professionals through minor components like lawsuits, deals, and inheritance-related data.
But everything becomes easier when you leave it to the professionals. Here, I have listed the top 10 business valuation firms or services. If your business needs one, you know which name to look for.
What Are Business Valuation Services?
Business valuation services have professionals with an accurate understanding of the economic value of any business in the current market. These firms undergo thorough research of the assets, earnings, liabilities, and cash flows of a business. This allows them to determine the business’ market value. There are 100s of these services available out there. But his article lists only the best 10 such services. Read the below section for more information.
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Why Do You Need Business Valuation Services?
Business valuation services are essential for business owners, investors, and stakeholders involved in transactions, mergers, or acquisitions. Additionally, executives rely on valuations for strategic planning, while legal professionals use them in litigation. Investors depend on accurate valuations to make informed decisions, and businesses leverage them for financial reporting and tax compliance.
Here are a few reasons why a business valuation is pretty important for businesses –
1. Transactional Clarity
Business valuation services ensure fair market value determination during sales, mergers, or acquisitions, facilitating equitable transactions and fostering negotiations for mutually beneficial deals.
2. Investment Decision-Making
Investors rely on accurate business valuation to make informed decisions, manage risks, and optimize their portfolios, aligning their investments with the true worth of a company.
3. Financial Reporting Integrity
Business appraisal services are essential for tax reporting, compliance with accounting standards, and financial statement preparation, safeguarding the integrity of financial reporting by incorporating accurate company valuations.
4. Strategic Direction
Business valuation reports empower owners and managers to strategically plan for the future, identifying improvement areas, setting realistic targets, and evaluating investment opportunities based on a comprehensive understanding of the business’s value.
5. Risk Management
Valuation helps in assessing a business’s financial health, enabling effective risk management by identifying potential risks and guiding stakeholders in making informed decisions to mitigate these risks.
6. Legal Resolution
In litigation scenarios, business valuation becomes crucial in resolving shareholder disputes, divorce proceedings, or bankruptcy cases, as valuation experts provide objective assessments to establish fair and unbiased valuations for equitable resolutions.
7. Optimizing Tax Strategies
Business valuation is relevant for tax purposes, aiding in estate planning, gift taxes, and determining the value of business assets, ensuring compliance with tax regulations and optimizing tax strategies.
8. Employee Incentives
In the context of Employee Stock Ownership Plans (ESOPs) or stock options, business valuation is necessary to determine the fair market value of company shares, ensuring employees receive a fair representation of the company’s value.
9. Strategic Resource Allocation
Valuation supports strategic planning by guiding resource allocation, helping businesses make informed decisions about the direction and growth of the company, aligning investments with the company’s intrinsic value.
10. Transparent Financial Positioning
Business valuation plays a key role in providing transparency about a company’s financial position, facilitating better communication with stakeholders and helping build trust by offering accurate and reliable insights into the business’s worth.
Top 10 Business Valuation Services
Here are some business valuation companies or firms you can use for calculating your new business –
1. Kroll
Businesses with financial & tax reporting valuation requirements can choose Kroll. They boast as one of the dominating and independent valuation service providers. Their key intention is to help businesses make confident decisions when it comes to mergers and investments. They help manage risk during any significant business transactions.
Services:
- Business Combinations Purchase Price Allocation
- Derivative Valuation & Share-Based Compensation
- Goodwill & Intangible Asset Impairment
- Machinery & Equipment Valuation
- Business Modelling & Analytics
- Fresh Start Accounting
- Strategic Value Advisory
- Tax Valuation
2. Deloitte
Deloitte is among the top business valuation services offering services to different companies across the world. They allow businesses to derive proper calculations of their worth and allow them to compare against the market. Here are the different aspects of a business they calculate during a valuation process –
Services:
- Tangible Assets
- Intangible Assets
- Business Interests
- Employee Stock Option Plans (ESOPs)
- Private Debt Instruments
- And Other Derivatives
3. PwC (Price Waterhouse Coopers)
The business valuation services provided by PwC market themselves using their expertise in technical accounting, deep accounting, valuation, and industry experience. Their integrated business valuation processes allow businesses. They base their valuation process on numerous parameters – leaving no areas unexplained to their clients. They offer their services during
Services:
- Accounting
- Auditing
- Tax Advisory
- Bookkeeping
- Business Consulting
- And Related Services.
4. E&Y(Ernst & Young)
E&Y is known for providing business valuation processes to companies across different industries. They excel at providing analytical, expert financial, and economic knowledge after valuing a business. Such services result in expert decisions and help during an effective B2B transaction. Here is a list of the plethora of business valuation services E&Y provides –
Services:
- Capital Assets
- Analytics
- Business Modeling Services
- Listing Services
- Economic Advisory Services
- And Much More
5. Duff & Phelps
Duff Phelps is one of the most popular valuation firms across the world. They are one of the old players in the industry and have been providing their services since 1932. They boast the strength of more than 1200 trained valuation professionals with best-in-the-industry technical competence. Their services also include general valuation services like –
Services:
- Capital Assets
- Analytics
- Business Modeling Services
- Listing Services, Etc.
6. KPMG
If you are playing in the big league with global players, then a global business valuation service is what you will need. That is when you have KPMG. They have more than 2000 business valuation professionals working in 70 different countries.
Their adherence to the latest tools is the key to their efficiency. KPMG uses lots of visualization tools, simulations, and data analytics tools to help find the most accurate business valuation. Whether merger & acquisition venture capital investments or divestitures, KPMG provides just the help you need. Their services include the calculation of –
Services:
- Tangible Assets
- Intangible Assets
- Business Interests
- Private Debt Instruments
- And Other Derivatives
7. Alix Partners
When businesses consisting of lots of intellectual properties need valuations services, they can opt for Alix Partners. This firm is generally the best business valuation service provider for assets like trade names, patents, trademarks, technologies, and more. They are the best for intangible asset valuation. As a merger and acquisition advisory company, Alix partner offers the below-mentioned services –
Services:
- Buy Strategy/Diligence
- Post-Merger Integration
- Post-Deal Value Creation
- Exit/Sale Support
- Carve-Out.
Also, the range of their operation overarches diverse range of industries such as – healthcare, telecommunications, pharmaceuticals, retail, the Internet, medical devices, electronics, software, airlines, automotive, etc.
8. FTI Consulting
Currently, many businesses are working with data, and almost many of the current world businesses work with intangible assets. So, when clients need to evaluate the intangible assets of such companies, they need the help of FTI Consulting.
It is one of the best business valuation services clients can use in today’s time. They provide the below-mentioned services –
Services:
- Strategic Advisory & Transaction Support
- Portfolio Valuation Portfolio Valuation
- Bank Collateral Valuation Opinions
- Fairness & Solvency Opinions
- Dispute & Litigation Support And Services
9. Coller IP
IP or intellectual property valuation is essential in today’s time. That is why there are so many IP business valuation services out there. Coller Ip is one of them. They excel at offering services for intangible assets like domain names, copyright, websites, relationship capital, contracts & brands, etc.
Services:
- Patent Valuations,
- Trademark Valuations
- Valuations Of Intangible Assets
10. CONSOR
Another business valuation consulting company is CONSOR. They offer valuation, management, and licensing of different intangible assets. They have been in the industry for more than 30 years. Their client history lists some big names like – IBM, Xerox, The Estate of Dr. Suess, & Amazon.com.
Services:
- Capital Assets
- Analytics
- Business Modeling Services
- Listing Services
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Final Verdict
Business valuation services like the ones mentioned here use different methods such as –Market Capitalization, Times Revenue Method, Liquidation Value ROI (Return on Investment), and Book Value. Clients looking for such services usually should go for firms that understand their industry and assets better.
However, the different names listed in this article provide the best services when it comes to business valuation. Did you find this article useful? The comment box is all yours for sharing any insights or raising queries. Thanks for reading.
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Shahnawaz Alam
Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.
