Business Appraisal
For Divorce Situations

You don’t get a second change
in equitable distribution.  
Get valuation right.  

Business Appraisal in Divorce proceedings

When business owner couples pursue a divorce, the business is often the largest marital asset. The situation is often complicated by the fact that, as a privately held entity, there is no readily available market pricing for the shares. Using a valuation expert to appraise the business is often the only way to get an accurate value for the asset.

  • Develop Clarity on Fair Market Value
  • Allocation of Personal Goodwill and Enterprise Goodwill
  • Thorough and well documented report serves as framework for negotiations
  • Use independent, third party opinion to mitigate conflict

Tip: Don’t be Penny-wise and pound-foolish. In most cases we work on the business is the largest asset in the marital estate. Avoiding the expense of a business valuation creates a cloud of uncertainty when it comes to the division of assets.

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Contested vs. Collaborative

Quantive works in both contested scenarios and collaborative divorce proceedings. In contested proceedings it is common for both sides to hire their own appraiser. In a collaborative proceeding both parties will often agree on the selection of a single appraiser.

Goodwill and its Impact on Value

Goodwill (sometimes referred to as “blue sky”) is the value attributed to the intangible assets of the business. These may include the name, the location, intellectual property, customer lists, etc. In divorce situations, depending on your state, we may be asked to allocate a portion of the overall value to “personal goodwill” – or the value that is directly attributable to a working shareholder. Be sure to discuss this in advance with your appraiser.

Concepts to Understand

There’s a lot to learn.  Here’s our Cliff Notes version.

Business Valuation Concepts for Divorce

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Personal Goodwill

Is value driven by the business or the person?  Does the business “not exist” without the working spouse?   Learn more about personal goodwill in divorce matters.

Standards of Value in Divorce

It might be surprising, but a single business often has a different value when you consider: “Value to whom?”  This concept – referred to as a standard of value – can often have a big impact in divorce matter.  Learn more.

More Types of
Business Valuation Purposes

BUY-SELL AGREEMENTS

Quantive performs business valuations in support of buy-sell agreements, to include buy-ins and -outs, as well as shareholder disputes.

VALUATIONS FOR DIVORCE

We perform business valuations in support of divorce proceedings, working either jointly retained or on behalf of one spouse.

PURCHASE AND SALE

Smart entrepreneurs routinely retain Quantive to understand price early and gain a roadmap for impending price negotiations.

LITIGATION SUPPORT

We provide litigation support for shareholder disputes, lost profits, shareholder oppression, commercial litigation, and various other reasons.

ESTATE AND GIFT

We perform valuations in support of various gifting strategies, as well as in support of probate requirements.

SBA LOANS

Quantive is qualified to perform valuations in support of SBA financing. Our reports are compliant with all SBA SOP’s.

INSURANCE

Quantive values companies for a variety of reasons related to insurance to include establishing values for funding buy-sell agreements.

OTHER

We perform valuations for business planning, gap analysis, lost profits and damages, and a variety of other reasons.

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