Recording: Balance Sheet Analysis and Business Appraisal Practice

Balance Sheet analysis is one of the most overlooked Approaches in business valuation.  The Asset Approach is what the valuator should tackle FIRST in order to realize that the Net Adjusted Assets will yield a normalized EQUITY value.  This is the starting point in determining a conclusion of value.

We look at the importance of fixed asset analysis, including machinery and equipment appraisal, in the business valuation process.

Some of the areas to be explored include:

• How to utilize the Balance Sheet so that it becomes an integral and critical component of the valuation engagement process 
• To identify when the fixed asset section of the Balance Sheet requires special value consideration 
• How to determine which fixed assets require a special “external” appraisal 
• To understand that each account on the Balance Sheet must be given consideration when determining their fair market value 
• To understand the built-in gain (“BIG”) tax and how to account for this deduction 
• To provide the business valuator with Word and Excel tools and additional analyses to improve and support your conclusion of value