Valuation Services

Valuation Services tells you your personal net worth, the value of your business, an asset you do not already own or a business you want to acquire.

Your bank may want to know the value of a company you are seeking to acquire. The court or a party to a divorce proceeding may want to know the value of a business or piece of property. The U.S. Government may want to assess the damage to an environmentally sensitive piece of land in a court proceeding.

Whether merging or selling a company or division, allocating a purchase price, testing for goodwill impairment for reporting purposes, entering a licensing arrangement, pursuing or defending litigation or addressing taxation concerns, a Valuation Services are an irreplaceable part of any strategy.

Our Valuation Services do not involve a "best guess" or "rule of thumb" estimate. That’s because at the time that a valuation report is issued, its usefulness depends on whether it meets the recognized existing professional standards. From the detailed analysis of the valuation of a business for legal proceedings to the due diligence involving business mergers and acquisitions, Stanley I. Foodman, P.A professionally crafts Valuation Service Reports to meet the most exacting standards of report supportability and preparation.

We regularly provide valuation services in complex matters such as financial reporting requirements, mergers, acquisitions and divestitures, intellectual property litigation and portfolio valuation, litigation support/quantification of economic damages, complex tax matters, asset-based financing, bankruptcy and restructuring, real estate, gift and estate planning, property insurance valuation services.

Case Study

We were retained to determine the value of a limited liability company (“LLC”) membership of a deceased majority member for federal estate tax purposes. The sole asset of the LLC was a Co-op apartment in the City of New York operating as a business location for a specialized professional practice under a long-term lease.

Although the limited liability company had more than one surviving member, the operating document of the LLC placed complete control of the LLC in the hands of one of them. Prior to retaining us, a real estate appraisal firm appraised the Co-op unit at a value that did not give any weight to any of the economic factors bearing on its ultimate value.

After giving consideration to certain limiting factors in its marketability, we valued the Co-op and therefore the deceased member’s LLC interest at an amount substantially below that of the real estate appraisal firm, saving the estate of the deceased several hundred thousand dollars in federal estate taxes.

Due Diligence

Due diligence helps to tell you if you are “getting what you pay for” or a “pig in a poke.” Are you contemplating a new partnership, joint venture, merger, or corporate restructuring? If so, consider the benefits of due diligence. What happens if you don’t? What undisclosed problems are lurking? Are there any skeletons in the closet?

A little due diligence goes a long way towards ensuring a beneficial, rather than a painful, deal. It encompasses a wide range of analytical and investigative techniques. We consult with you to profile what you need and why you need it. From the acquisition of a local business to an in-depth international investigation, we put our discreet team to work ensuring that your deal meets, rather than defeats, your business objectives.

Case Study

A business man who owns ninety percent of the outstanding capital stock of a company offers to sell one-half of his capital stock. His stated reason is his age and a desire to expand the business through the buyer working exclusively in outside sales. The business has been operation for approximately thirty years in the local market place. For the past five years it has reported little or no profits. The reason is a change in local demographics requiring a bi-lingual salesman who has never been hired. We recommend against the purchase. Why? The seller wants to retain exclusive operational decision making authority. Effectively, the seller is actually interested in acquiring a capable outside salesman who has to purchase his job. While he says he is willing to compromise on this demand through negotiations, our detailed review of the records reveals a history of Internal Revenue Code and federal and state wage and hour violations for which the seller adamantly offers no indemnification protection.

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