What Is My Landscape Business Worth?
What Kind Of Valuation?
Depending on the reason for the valuation, you may need/want
different types of reports.
I was recently contacted by an attorney working on behalf of her landscaping business client owner asking for a valuation of the business for purposes of a divorce. I thanked her for reaching out but explained to her that what she probably wants is an Opinion of Value Report* (Fair Market Value) for her client. There are two basic types of valuation reports, and the type you need depends upon your reason for needing a valuation.
These are:
- Conclusion of Value Report (also called an Opinion of Value Report) – This is a formal report that includes all the elements needed if you will be filing your report with the IRS or a court. This is also used for ESOPs and incentive compensation plans like Stock Incentive Plans.
- Calculation of Value Report (also called a Restricted Valuation Report) – This report is shorter and more informal, and therefore is less expensive. It’s appropriate for management planning, estate planning, partners buying in or selling out, or for planning to sell the company.
Harvest the Green’s work is focused on Calculation of Value Reports. We provide estimates of market value for landscape business owners who wish to sell their businesses or who wish to build a plan for exiting their businesses as described above. We often do have clients who need a Conclusion of Value Report with a Fair Market Value appraisal (for ESOP, death, divorce, etc.). In that case, we outsource to one of our trusted networks of certified business appraisers who include CPA/legal/tax and accounting services. Those we work with regularly have expertise in the landscaping businesses (and other specialized industries) nationwide.
In the US, these are the professional organizations and the credentials to look for:
- American Institute of Certified Public Accountants (AICPA) – Certified Public Accountant (CPA) and ABV (Accredited in Business Valuation)
- American Society of Appraisers (ASA) – Accredited Member (AM) and Accredited Senior Appraiser (ASA)
- National Association of Certified Valuators and Analysts (NACVA) – Certified Valuation Analyst (CVA)
You will surely be able to locate a local resource from among these resources for the type of valuation you need.
If you’d like to discuss what your needs are or how we can help you work through your process, including ways your company can maximize its value, we’d be happy to have a confidential complimentary conversation with you about these or any other exit/sales/buying issues.
You can reach me via email: [email protected] or on my cell phone a: 224-688-8838.
We’re here to help you Harvest Your Potential!
