Independent, Third-Party Business Valuations
There are many occasions when a client may wish to establish the market value of their business. It may arise, for instance, when they are considering selling the business, issuing shares to key employees, restructuring their affairs or engaging in next-generation planning. Alternatively, an independent valuation may be required to settle a shareholder dispute or for grant-of-probate purposes.
In the majority, if not all, of these cases, there are tax implications. Therefore, an incorrect or unsubstantiated valuation, detected through a subsequent audit, intervention or aspect query, may lead to Revenue imposing tax, interest and penalties.
In the event of a Revenue intervention, it is vital that a formal valuation exists to support the value placed on the business – and, in such cases, an independent valuation is usually perceived to be stronger than a valuation performed by the client’s own tax advisors.
Likewise, new shareholders coming into a business may perceive the company’s own accountant to be biased towards existing shareholders and may look for a valuation from an independent party.