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A Business Valuation Can Help Determine Fair Market Value For A Buy/Sell Agreement

“A Business Valuation can Help Determine Fair Market Value for a Buy/Sell Agreement”, published in the April 2013 issue of Broker World, describes how a business valuation using accepted IRS valuation factors can help determine what your business is worth. The article outlines important, time-tested valuation factors that provide a way to determine fair market value. These factors, based on Revenue Ruling 59-60 are:

 

  •     •Nature and history of the business pertaining to growth, sales, and stability
  •     •Economic outlook of the particular industry in which the business operates
  •     •Book value of the business reflected in the balance sheet
  •     •Earning capacity of the business
  •     •Cash flow dividend paying capacity of the company

 

Download a PDF of the article or read it online.