Our business valuation services apply to appraisal of closely held businesses and of partial business interests, including valuation of equity and debt components of capital structure. In Los Angeles business valuation may be tax related, for an acquisition or divestiture, a buy-sell agreement, an ESOP, a fairness opinion or in connection with bankruptcy. Business valuation services also apply to valuation of Los Angeles intellectual property, California intellectual property, patents, trademarks and copyrights.

Business appraisers often state that their appraisals are based on an “income” approach and a “market” approach. Modern financial-economic theory, however, reveals that these “approaches” are not really different but just use available data differently. Only an economic approach to valuation can properly integrate the required data and reconcile the apparent inconsistencies between the “market” and “income” approaches while also providing an economic rationale for the valuation conclusion.

Business valuation and damages valuation have much in common. Both rely on a projection of future money amounts to determine present values. For the business valuation the future amounts are withdrawable cash. For the damages valuation the future amounts are losses.