How Long Do Business Valuations Last?

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

How Long Do Business Valuations Last?

After asking about the price, this is the most common question relating to business valuations. The answer, well, that depends…

In this episode, David Mariano and Rand Curtiss, a Director at Western Reserve Valuation Services, discuss describes the numerous limits on valuation expirations.

 Key questions in this episode:

* Are there different rules for how long a valuation can last?

* What happens to a valuation if a partner in a business dies?

* When accounting rules or tax laws change, does it effect a current valuation?

* How often should a business owner have a valuation done?

* What kinds of assumptions define the value points of a business valuation?

* What is an example of an unforeseen material change?

* How often, after a valuation is completed, does an “occurrence” invalidate it?

* Does it matter who you ask to do your business valuation?

* Does Rand believe in unicorns?

Key points in this episode:

* How accounting rules determine the effective dates of business valuations.

* How contractual agreements can define the parameters of a business valuation.

* How changes in state or federal laws can change the valuation of a business (at 8:51).

* How different valuation purposes determine the parameters of business valuations.

* Rand’s Justification of Purchase test.

* How investment bankers and appraisers work together to best service buyers and sellers (at 13:33).

* Calculating the internal rate of return expectations.

Resources mentioned in this podcast

* Click here for access to training and templates

* Subscribe to “For What It’s Worth,” a monthly newsletter by Rand Curtiss

Listen to Fully Invested below: