Business Valuation

Business Valuation Services

We provide expert valuation services for dispute
settlement and litigation.

We leverage deep valuation and business experience and a genuine, client-focused approach to provide the following best-in-class informal and formal business valuation services.

Dispute Settlement and Litigation

We provide business valuation services for dispute settlement and litigation purposes and serve as testifying experts, as necessary.

FAZ Value Proposition

Wherever possible, we perform a more informal Calculation of Value for business planning and dispute settlement purposes, which can easily be converted to a more formal Conclusion of Value, if necessary, with no duplication of efforts.

What is Business Valuation?

A business valuation is a general process of determining the economic value of a whole business or company unit. Business valuation can be used to determine the value of a business for a variety of reasons, including the sale or purchase of a business, business exit or transition planning, estate and gift taxation, establishing shareholder or partner ownership, employee benefit plans (e.g. ESOPs), shareholder or partner disputes and divorce proceedings. Business owners will often turn to professional business valuators like us for an objective estimate of the value of the business.

Business Valuation Basics

The valuation of a business is the process of determining the current worth of a business, using objective measures, and evaluating all aspects of the business, the industry and the current operating environment.

A business valuation might include an analysis of the company’s management, its dependence on owners, its business value drivers, its capital structure, its future earnings prospects, as well as the market value of its operating and non-operating assets. The tools used for valuation can vary among valuators, businesses, and industries. Common approaches to business valuation include a review of historical and/or forecasted financial statements, income tax returns, operating expenses for EBITDA normalization purposes, cash flow analysis, and industry benchmarking and comparisons.

Valuation is important for tax reporting purposes. The Internal Revenue Service (IRS) requires that a business is valued based on its fair market value. Some tax-related events such as business sale, purchase or gifting of shares of a company will be taxed depending on a business valuation.

Estimating the fair value of a business is an art and a science; there are several formal models and approaches that can be used and choosing the right one, and then the appropriate inputs, can be somewhat subjective.


Types of Business Valuation

Business valuation analysts who hold the Certified Valuation Analyst (CVA) credential supported by the National Association of Certified Valuation Analysts (NACVA) or the Accredited in Business Valuation (ABV) credential supported by the American Institute of Certified Public Accountants (AICPA) are required to follow standards that differentiate between two types of valuation engagements: Calculation of Value and Conclusion of Value. Similar to the various levels of attest services traditionally offered by CPAs related to financial statements, including compilations, review or audits; business valuation engagements are separated into these two distinct service categories. To provide maximum value and proactive service for our clients we begin our engagements, where feasible, with a Calculation of Value for cost effectiveness and efficiency. The rationale behind our approach will become clear as you read on.

Calculation of Value

Calculation of Value

  • The valuation methods to be used in determining value are discussed and agreed upon beforehand between the client and the valuation analyst.
  • Reduced development and reporting requirements compared to a Conclusion of Value engagement.
  • Ideal for planning purposes (e.g. strategic planning, transaction (purchase or sale) planning, buy/sell agreements or shareholder/partner litigation and divorce proceedings during the settlement stage).
  • Valuation analyst does not opine of the value of the business or business interest, rather, the valuation analyst applies the valuation methodologies agreed upon with the client.
  • Generally not defensible in litigation settings because the valuation analyst is not offering an opinion of value, rather, the analyst “calculates” a value based on methods agreed upon with the client.
  • Typically costs less than a Conclusion of Value.
  • Typically takes less time and is less invasive than a Conclusion of Value.
  • Has been found to be useful in litigation situations in which a party to the lawsuit will obtain a Calculation of Value to aid in the settlement process; If a settlement is not reached, the engagement can easily rise to the level of a Conclusion of Value so that the valuation analyst can opine on a value and defend it in court, if necessary.
  • Any work performed for the Calculation of Value can typically be leveraged to a Conclusion of Value.

Conclusion of Value

  • All three valuation approaches (asset, income, and market approach) are required to be considered.
  • Detailed development and reporting requirements must be adhered to by the valuation analyst, making the engagement more time consuming than a Calculation of Value.
  • This is the required type of valuation for estate and gift tax filings, 409a valuations and SBA loans. Also typically required for instances in which the valuation analyst will need to defend his or her findings and report (i.e. in litigation).
  • The valuation analyst “opines” on the value of the business or business ownership interest.

As you can tell, all “valuation” work is not created equal. For business owners, as well as their attorneys and other advisors, it is important to be aware of the varying levels of valuation service offered so that the appropriate type of report is obtained. You should discuss the purpose of the valuation with the valuation expert as the engagement is forming so that the level of service can be the most cost-effective, efficient and tailored to your specific needs.

The last thing that you want to do when having a valuation performed is pay too much to obtain a Conclusion of Value that is largely unnecessary and will only be used for planning, negotiation or dispute resolution purposes… or conversely …pay too little to obtain a Calculation of Value that will not hold up in a litigation setting or under IRS scrutiny for tax purposes.

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Read Our Reviews

FAZ CPAs is rated 4.94 out of 5.0 stars based on 17 review(s).


FAZ has a great team doing terrific work for our clients.

- Jim Towne


Exceptional work produced.

- Matt Smith



- Arrow Bank


FAZ was very professional, knowledgeable and very fair priced. The work performed was prompt, accurate and reliable. I would absolutely hire them again if in need for additional accounting work.

- Arrow Financial Corporation


Excellent to work with. Professional and personable.

- Cambridge Central School District


Awesome team! They were a pleasure to work with. I would definitely recommend.

- Cambridge Central School District


FAZ was extremely thorough and professional in doing our business valuation. We are very pleased with the results

- Anne Choppy


Steve and GeNet were great at the valuation we needed. Very satisfied. Thanks,Vince and Anne

- Vincent M. Choppy



- Zalazar anelardo


Gen'et and Paul were extremely responsive to our needs. They listened and responded to any concerns that we had. I would highly recommend them for any forensic engagement needs.

- Jennifer Mulligan


Thank-you for asking. Our experience was excellent. The people at FAZ showed a depth of knowledge and experience that was very helpful with the undertaking before us. Well done.

- Guy Tombs


The CPAs and staff at FAZ are truly amazing. They explain their process very well and always answered my questions right away. I highly recommend them for all your forensic accounting and evaluation services.

- Ashley Hart


Excellent and responsible.

- Peter Lee


Steve Ferraro did an excellent job and worked tirelessly as our expert forensic accountant witness. Based on Steve's hard work, the jury awarded every penny that Steve showed our client to be entitled to and completely rejected the conclusions of the opposing side's expert.

- Dave Paliotti


Great firm!

- John Harwick


The people at FAZ are amazing. They are true professionals. The staff is knowledgeable & kind. You feel like you matter. Anytime I have questions they take the time to go through everything in detail so I completely understand everything. I would definitely recommend FAZ.

- Dan Dagostino