• Business Valuations
• Business Succession
• Business Protection

 Business Valuations

Our business valuation services cover full range of valuation services, including the following:

• Estate Planning and Estate Tax related valuations
• Private company shareholder transactions
• Buy Sell Agreements
• Minority Interest valuations
• Mergers & Acquisitions
• Valuation dispute resolutions

Many business owners and shareholders in private companies have no yardsticks to know the worth of their ownerships. For a variety of reasons such as dissenting shareholder actions, buy sell agreements, liquidations, reorganizations, life insurance adequacy, and financing, business valuations become necessary. We recommend periodic business valuations not just as a tool for addressing the above-mentioned areas but also as a very effective management tool for maximizing the company’s worth that provides the management with an insight that other financial and operational reports and analyses fail to provide.

Our approach to business valuations in litigious cases is underlined by our conviction to bring the parties to a win-win resolution and avoid costly litigations through demonstrating the strength of our objective arguments and reliable business valuations.
Please contact us and we will be pleased to provide additional information regarding our business valuation services.

PROPER BUSINESS VALUATION

The importance of proper business valuation cannot be overstated. Traditional business valuation tools, such as multiple of sales or net income based on general industry indices, can be very misleading and can significantly overstate or understate the value of a business. The wrong valuation can in turn result in alienating potential investors or selling the business cheaply. It can also lead to the payment of higher fees and taxes or unfair resolution of divorce or minority shareholder settlements.

While it is relatively easy to obtain the value of tangible assets of a business, it takes an expert team of seasoned professionals to identify and quantify the intangible assets of an entity. Our experts are capable of applying insightful adjustments to the entity net worth that would reflect the proper net worth of the entity that will be used in the future to generate income. Such adjustments take into account the worth, expertise, and availability of the key management, the relevance of physical assets to the business income generation, adjustments to income statement expenses for excessive charges or expenses understated by special circumstances, etc. Another factor that we take into account in business valuation is the purpose and objective of business valuation. A business being valued for purpose X may be valued differently if the purpose is changed to Y.

Succession Planning

Most business owners’ eventually face the challenge of either selling their business or transferring ownership to a family member. If you are considering business succession, Allegiant Wealth Management Professionals can develop and implement a custom succession strategy that maximizes your tax advantages, and helps you reach your personal financial objectives. Working closely with your Allegiant Financial Advisor, these professionals will provide advice and expertise throughout the entire succession process to ensure a smooth, seamless transition.

Benefits

• Enjoy an individually tailored succession solution based exclusively on your specific goals.
• Take advantage of our broad range of expertise and resources, including investment banking services and specialized tax strategies.

Integrate your succession assets into your personal financial plan through your Allegiant Financial Advisor.

Business Protection Planning

Managing business risk means managing the protection of your employees, customers, property, information and the environment. Formal business risk management is a policy or program that works to prevent all types of problems arising from risk and uncertainty.

Although the actual risk management processes may be different in small and large companies, the problems that arise as a result of poor risk management are the same. Unmanaged risk creates inadequate security and safety measures, which can cause financial loss, erode profits and create unnecessary liabilities. Inadequate risk management can even scare away venture capital funding and lower your bank rating status.

Benefits of Risk Management

Risk management programs require companies to carefully review their personnel, administrative, accounting, management, financial and insurance policies.

Carefully evaluated risk management policies produce both tangible and intangible benefits:

• Good risk management can reduce business and liability insurance premiums (in the same way that a security system can reduce your homeowner’s insurance).
• Formal risk management programs are frequently accepted by major insurance underwriters for the purpose of lowering premiums.
• Risk management reduces your chances of being sued and increases your chances of prevailing in a lawsuit if you are taken to court.

Risk Management Strategies

All businesses are susceptible to losses from uncontrolled risk. Your risks will vary according to your business exposures and geographical location. Carrying enough of the right types of insurance is one way to protect your business against unforeseen events, including unauthorized trading, fraud and robbery.

You can also focus your company’s formal risk management efforts on operational risk exposures. Consider the following tips:

• Analyze ways to control any data-security risks, especially if your business transacts e-commerce.
• Develop management strategies to minimize the frequency and severity of these risks.
• Identify the operational risks in your everyday business activities and take steps to minimize them. For example, financial companies, restaurants and other businesses that handle large volumes of cash should be aware of the likelihood of crime and take steps to prevent operational loss.
• Prepare to respond quickly to an emergency or a disaster. Have a plan in place that ensures you can immediately continue to conduct business when disaster or emergency strikes.