In Closely Held Business Valuations, owners recognize that their ownership interest is illiquid, sometimes entering into "buy-sell" agreements (which are often funded by life insurance) in planning for the death of one of the owners. However, the agreement also covers transactions during the lives of the owners in the event one of them withdraws from the business for one of several reasons. A valuator may be called upon to assist in deriving a business value at inception or to derive a formula for setting a value on the stock. It is advisable that a valuation be done at inception and updated each year because facts and circumstances may change from year to year.
© 2020 C. P. Schumann, P.C. No portion of this site may be reproduced or redistributed without the express written permission of the copyright holder. Although the information is believed to be reliable, we do not guarantee its accuracy. Our website is intended for information purposes only and is not intended as financial, investment, legal, accounting, tax, or consulting advice. On January 1, 2013, the company name changed to C. P. Schumann, P.C.