Pesce Law Group, P.C.

FREE CONSULTATIONS 630-352-2240

Naperville | Oak Brook | Burr Ridge | Lake Forest | St. Charles

Business Valuation Attorneys in Glen Ellyn

DuPage County Business Valuation Lawyers

Businesses do not have price tags. Moreover, the statistics in a balance sheet can sometimes be deceptive; for example, a particular accounts-receivable balance may be, essentially, uncollectable. Further complicating matters, all businesses have intangible assets, most notably customer and supplier goodwill. The best way to value businesses, for divorce purposes, is to take a measured approach that relies on established methods.

At Pesce Law Group, P.C., we routinely handle business valuation and property division matters. Although every case is different, we rely on proven techniques that have been developed and refined through many years of practice. Our goal is to craft an equitable property division that upholds your legal and financial interests, both in the short and long term.

Factors to Consider

Ever since it was released in 1959, IRS Revenue Ruling 59-60 has been the leading authority on this subject, and Illinois courts have consistently upheld both its specific findings and general principles. To value a business, for divorce purposes, the examiner should consider:

  • The type and nature of the business, beginning with its inception date,
  • Company's maximum earning capacity,
  • Stock's actual market value,
  • Business' current financial condition,
  • Overall economic outlook in general, and the industry's outlook in particular,
  • Value of comparable stocks being traded on the open market
  • Stock sales and number of shares,
  • Dividend capacity, and
  • Any intangible assets, including business goodwill.

The Ruling stresses that each valuation is fact-specific, and the prongs should be given varying weight according to individual circumstances.

Overall Approaches

During the valuation, the appraiser may use one of three overall models, in addition to the specific questions in Revenue Ruling 59-60:

  • Market Approach, which uses comparable sales as a guideline,
  • Asset Approach, which considers only the enterprise's tangible and intangible assets, or
  • Income Approach, which gives great weight to the company's actual and potential income.

Choosing a Valuator

Not all accountants are necessarily qualified to conduct a business valuation, especially where small or medium-sized businesses are concerned. The American Institute for Certified Public Accountants requires that a CPA complete additional training to be an Accredited Business Valuator. That training includes, at a minimum, a completed apprenticeship program, a written exam, and additional annual continuing education hours. Pesce Law Group, P.C. attorneys network with professionals in other disciplines, so we are an excellent resource to locate qualified appraisers.

A proper and accurate business valuation is an integral part of a divorce property settlement. For a free consultation with experienced family law attorneys, contact Pesce Law Group, P.C. at 630-352-2240. Convenient payment plans are available.

Related News

Read More
Making Birdnesting Work in Illinois
Making Birdnesting Work in IllinoisThere are many different ways a child custody arrangement can be settled. One parent might be granted full custody. One might be granted no nights at all with their child and infrequent visitation. A couple could also have complete joint custody, in which case they...
Can I Modify My Parenting Plan in Illinois?
Can I Modify My Parenting Plan in Illinois?When parents in Illinois get a divorce, they end their divorce proceedings with a legal document, called a parenting plan, that sets out both spouses’ parental rights and responsibilities. Essentially, it is an outline of how they will continue to care for their children once...
What Goes into Determining Parenting Time?
What Goes into Determining Parenting Time?Deciding on a parenting time schedule that is in the child's best interest is one of the most important and often challenging aspects of child custody cases. Illinois courts rely on several factors when making determinations about parenting time arrangements. If you have any concerns or need...
Back to Top