All business valuation assignments seek the answer to this simple equation:

But simplicity ends there; the issues surrounding the calculation of benefit streams (profits or cash flows) and risk (cost of capital or discount rate) are numerous, complicated, and contentious.

A certified business valuation can be necessitated for a variety of reasons; estate planning, gifting, shareholder buy/sell agreements, conversion to Sub-S status, impairment testing, or sale of the business. Whatever the reason, the issue is the same, the report must be thorough, thoughtful, accurate, and defendable. Business valuation reports become important only upon a triggering event; death, IRS audit, shareholder dispute, etc. Once the triggering event occurs, you can’t go back and do it over. This is why it is extremely important that the person completing your valuation assignment be experienced, trained, and credentialed.

Do not leave your business valuation needs to chance. OCD Consulting specializes in retail automotive business valuations. Michael McKean, its principal, is an Accredited Valuation Analysis; a credential offered exclusively by the National Association of Valuation Analysts. He has completed countless retail automotive valuation assignments, given expert testimony in courts, and appeared before the Internal Revenue Service.