Business Valuation Services
Business valuations assess the value of a business or an individual’s ownership stake in it. This process plays a vital role for business owners and individuals as they navigate significant business decisions. When you’re ready to buy or sell a business, prepare for gift or estate tax reporting, or ensure compliance with regulatory requirements, a solid valuation can help. You’ll receive fair market pricing, clear strategies, and a solid plan for your financial future.
LBMC delivers customized, defensible valuations that fit your unique goals and meet industry standards. With decades of experience in fields like healthcare, private equity, and closely held businesses, we’ve got you covered. Our team brings together strong technical skills and expertise in tax, transactions, and advisory services. We collaborate to provide you with timely, tailored reports that meet top professional and regulatory standards.
Business Valuation Services in Practice
Valuations are crucial in major business events like mergers and acquisitions, estate and gift planning, financial reporting, and partner disputes. Getting them right is key because accuracy and objectivity can directly impact financial results. When businesses lack a reliable valuation, they risk mispricing their assets. This may result in tax issues, decreased investor confidence, or potential regulatory scrutiny.
Why Businesses Choose Valuation Services
During crucial transitions, compliance events, and strategic planning, both businesses and individuals seek out valuation services. A trustworthy valuation ensures that outcomes are fair and decisions are well-informed.
Clients often seek business valuation services for several reasons:
- Business sales or acquisitions
- Ownership transitions or buy-sell agreements
- Gift and estate tax planning
- Shareholder disputes or litigation support
- Financial reporting and compliance
- Strategic planning and forecasting
Questions About Business Valuation?
From ownership changes to M&A, valuations raise complex questions. LBMC helps you evaluate if, when, and how a valuation is right for your situation.
LBMC's Business Valuation Services
LBMC offers a complete range of business valuation services to help you make important financial decisions throughout your business journey. When you’re planning for succession, navigating a transaction, or tackling regulatory requirements, our team provides timely valuations based on real-world applications and industry insights.
Core Valuation Services
- Gift and estate tax planning and reporting
- Financial reporting (ASC 805 purchase price allocations, ASC 350 goodwill impairment)
- Stock-based compensation (Section 409A and Section 83(b))
- Mergers and acquisitions (M&A) support and fairness opinions
- Intangible asset valuations
- Employee Stock Ownership Plans (ESOPs)
- Cash flow forecasting for strategic planning
- S-corporation elections
- Buy/sell and joint venture agreements
- Due diligence services
Healthcare Valuation Services
- Company and intangible asset valuations
- Valuations for physician compensation and service arrangements
- Certificates of Need (CONs) and commercial reasonableness studies
- Fixed asset and financial reporting valuations
- Litigation support and regulatory compliance analysis
- Employment and on-call arrangements
- Medical director, management service, and clinical co-management agreements
- Subsidy, collection guarantee, and joint venture arrangements
For more information on healthcare and physician practice valuations, visit Healthcare and Physician Practice Valuations.
We create valuations that are practical, precise, and can stand up to scrutiny—whether for internal purposes, regulatory review, or legal proceedings. Clients enjoy a seamless experience and a broader strategic perspective thanks to integrated access to LBMC’s tax, accounting, and advisory teams.
Valuation Services Tailored to Your Business Goals
Whether you’re planning a sale, navigating compliance, or preparing for the future, LBMC delivers valuations that provide clarity and confidence.
Industries We Serve
Our Client Advisory and Accounting Services team works closely with various industries to provide tailored outsourced accounting solutions that meet the specific challenges and goals of each client. If you’re looking for help with compliance, scaling your operations, or getting a better handle on your finances, our team is here for you. We offer industry-specific insights and the flexibility you need to succeed.
All Industries We Serve
Local Expertise, Wherever You Are
With offices in Chattanooga, Memphis, Louisville, Nashville, Knoxville and Charlotte, plus remote offices, LBMC partners with businesses across the region and beyond.
Why Choose LBMC as Your Business Valuation Firm?
With a nationally recognized valuation team and deep industry specialization, LBMC brings credibility and confidence to every engagement.
- Accredited professionals with CVA, ASA, and CPA credentials
- Specialized healthcare valuation team with compliance expertise
- Fast, responsive service with a focus on defensibility
- Integrated access to LBMC’s tax, transaction, and advisory professionals
- Deep experience with complex and high-stakes valuations
Financial Reporting Valuations
LBMC provides valuation services for financial reporting purposes, including purchase price allocations (ASC 805) and goodwill impairment testing (ASC 350). Our clients operate in diverse industries (e.g. distribution, healthcare, technology, manufacturing) and have retained us to value several types of intangible assets, including the following, and complex earnouts:
- Trade names and trademarks
- Internally developed proprietary software
- In-process research and development
- Customer contracts and relationships
- Backlog
- Non-competition agreements
- Assembled workforce
Stock-Based Compensation and Employee Stock Ownership Plans (ESOPs)
LBMC provides business valuation services for ESOPs and stock-based compensation, including stock options, restricted stock and stock appreciation rights, that help our clients navigate tax issues related to the issuance of stock-based compensation to their employees. Two common events requiring an independent valuation are as follows:
- A company issues employee stock ownership plans requiring Section 409A compliance with tax regulations to establish the strike price for stock options that is greater than or equal to fair market value.
- A company issues restricted stock and the employee receiving restricted stock desires to make a Section 83(b) election.
Mergers & Acquisitions (M&A)
LBMC’s M&A valuation team can help your business navigate the financial complexities of mergers and acquisitions. When it’s time for you to buy or sell a business, or at least a portion of one, you want to make sure the price is fair value. We can all agree that the seller desires top dollar while buyers prefer a bargain. Determining that the fair value price can be a challenge. Therefore, when our team conducts a valuation, we consider all relevant approaches and offer an unbiased, well-researched valuation to help you understand the value assigned to the business sale.
As a regional firm with national reach, LBMC offers expert valuation and appraisal services for mergers and acquisitions. Our team provides representation to business sellers, and buyers, helping them make optimal acquisition decisions. Our seasoned professionals can tailor services to provide your business with several valuation approaches and are also equipped to assist with other aspects of the due diligence and transaction process.
Preparing Buy-Sell Agreement for Valuation
Businesses with more than one owner should always have a buy-sell agreement to handle both expected and unexpected ownership changes. When creating or updating your company’s buy-sell agreement, be sure you’re prepared for the valuation issues that will come into play.
Triggering Events that Activate a Buy-Sell Agreement
Emotions tend to run high when owners face a “triggering event” that activates the buy-sell. These triggering events include the death of an owner, the divorce of married owners or a dispute between owners.
The departing owner becomes the seller who wants to maximize buyout proceeds. The buyers are the other owners or the business itself, and it’s in the buyer’s financial interest to pay as little as possible. A comprehensive buy-sell agreement takes away the guesswork and helps ensure that all parties are treated equitably.
Some owners decide to have the business valued annually to minimize surprises when a buyout occurs. A requirement for a formal valuation by a qualified business valuation professional is always preferable to using a static valuation formula in the buy-sell agreement because the value of the interest is likely to change as the business grows and market conditions evolve.
Buy-Sell Agreement Protocols
At a minimum, the buy-sell agreement needs to prescribe various valuation protocols to follow when the agreement is triggered, including:
- How will the value be defined?
- Who will value the business?
- Will valuation discounts apply?
- Who will pay appraisal fees?
- What’s the timeline for the valuation process?
It’s also important to discuss the appropriate “as of” date for valuing the business interest. The loss of a key person could affect the value of a business interest, so timing may be critical.
Developing a Buy-Sell Agreement
Business owners tend to put planning issues on the back burner, especially when they’re young and healthy and owner relations are strong. However, the more details that you put in place today, including a well-crafted buy-sell agreement with the right valuation components, the easier it will be to resolve buyout issues when they arise. LBMC’s business valuation team would be happy to help.
FAQs About Business Valuation Services
1. When should a business consider getting a valuation?
Anytime you’re planning a sale, restructuring, gifting ownership, or resolving disputes, a valuation ensures clarity and fairness.
2. What factors influence the value of a business?
Key factors include financial performance, industry outlook, management strength, customer concentration, and intangible assets.
3. How are business valuations performed?
Common methods include the income approach, market approach, and asset-based approach, depending on the situation.
4. Can a CPA perform a business valuation?
Yes, especially those with CVA or ASA credentials. LBMC’s team includes certified valuation professionals with deep experience.
5. What is the average cost of a business valuation?
Cost depends on the scope, purpose, and complexity, but LBMC offers clear, upfront pricing tailored to your needs.
6. How long does a business valuation take and what information is required?
Most projects take 2-6 weeks. You’ll need to provide financial statements, legal documents, and insight into operations.
7. Is a business valuation worth it?
Absolutely. It supports smart decisions, protects against disputes, and ensures compliance—often saving time and money long-term.
8. Why choose LBMC for business valuation services?
We combine certified expertise, responsive service, healthcare specialization, and the backing of a full-service advisory firm.
Andrew Lowe
Knoxville Market Leader, Shareholder, Valuation and Litigation Support Services
Christopher M. Lovin
Shareholder, Practice Leader Valuation and Litigation Support Services
