Business Appraisals in Santa Monica, California
- Jim Lisi, CVA, BCA-R, MBA
- Dec 17, 2024
- 6 min read
Updated: 10 hours ago
In the ocean-side city of Santa Monica, California, business owners need clarity when making significant financial decisions, such as selling a company or planning for the future.
SB Valuations specializes in providing dependable business valuations for companies in coastal towns such as Newport, Santa Monica, Ventura and Santa Barbara, specializing in companies with revenues up to $75 million. Our experience in these towns and proven methodologies ensure that you receive a report with transparency in process, a reliable result and actionable insights.
Ready to have your business appraised? Receive your free consultation with Santa Monica valuation expert and author, Jim Lisi today.
Why Choose SB Valuations for your Santa Monica Business’s Appraisal?
In 2013, SB Valuations began to make high-quality business valuations accessible for a range of price points that serve smaller businesses as well as medium sized ones. Over the years since, SB Valuations has built a strong reputation by solving valuation challenges that many appraisers struggle to address.
Jim Lisi explains, "We’ve gone deep into fundamentals, finding the answers to questions that troubled other appraisers and colleagues. Our focus on scientific method ensures results that stand up to scrutiny and provide clients with real clarity."
In Santa Monica, where businesses range from startups to mature corporations, our tailored approach ensures that every type of client receives reliable, context-driven results. Unlike larger firms that rely heavily on generalized statistical models of public company data, SB Valuations develops assessments rooted in real market transactions of private companies and cash flow analysis.
Service Overview
Our Approach to Business Valuations in Santa Monica
Every business in Santa Monica is unique, so our appraisal process adapts to your specific needs. Whether you are exiting an investor, raising capital, granting stock options or preparing for an estate transition, we ensure you understand every step.
"We strive to provide clear explanations of the types of reports, their uses, and the process," says Jim Lisi.
Lisi continues, "Having been a business owner, I understand the needs of business owners and know when valuation discussions get overly technical. At that point, we spend a little more time explaining. We aim to ensure clients fully comprehend the reports they receive and the debriefing is an important part of the process."
We start wiht a comprehensive assessment that informs the analyst about your business. Then, this data feeds the three core valuation approaches demanded by professional standards, which are:
Cost Approach: Appraising the tangible and intangible assets on replacement basis.
Market Approach: Comparing your business to sales of similar businesses.
Income Approach: Valuing the business' cash flows and potential earnings.
When the right variables are applied in the right approaches, the valuation report supplies the right information so that stakeholders can make the right strategic business decisions.
Ready to speak with a valuer about your Santa Monica business? Reach out today for your free consultation.
Types of Valuations Offered
Litigation Valuations
Legal disputes may require a business’s value to be determined, or damages to the business to be presented in court.
We craft litigation valuations that withstand scrutiny and help resolve disputes effectively. The power of scientific method is demonstrated in actual cases.
Jim Lisi shares, "Presentation of a valuation often lead to settlement if the data is clearly shown and the reasoning is transparent. In one case, a strategic sale fell apart when one of four partners refused to sign-off on the deal. We showed how this led to $15 million of damages to the other investors, and the case settled within a week.
In another case, we defended a client against a $14 million IRS assessment by providing scientific evidence to support our discounts.
Rather than argue in Tax Court where the evidence would be made public, the IRS dropped the case entirely.
Estate and Gift Planning
Transferring assets as gifts at significant discounts in Santa Monica requires a dependable valuation to avoid IRS challenge.
SB Valuations offer clear assessments that align with tax regulations and provide peace of mind.
409a Valuations
Stock options can be a valuable compensation tool for Santa Monica businesses, but they require compliance with IRS regulations.
Our ‘current value’ 409a valuations ensure fair stock options pricing, helping companies offer competitive employee benefits.
Current value appraisal is necessary for companies that have not yet raised an independent round of capital, and one option beyond this stage.
Mergers and Acquisitions
In Santa Monica's dynamic business landscape, mergers and acquisitions can unlock tremendous growth opportunities.
Our M&A valuations provide data-supported values and critical insight into the range of possible deals to help you negotiate and make confident decisions.
Partner Exit Valuations
When a partner exits a Santa Monica business, it is crucial to determine the company’s value at that point in time.
Our valuations consider the effect of the exit, foster smooth transitions and account for business disruption if change is present.
Investor Valuations
Investors prioritize clear projections and returns.
Our investor valuations assess potential cash flow, exit strategies, and other factors to provide a genuine picture of the investment’s value.
Real Estate Company Valuations
Navigating estate taxes can be complex, especially in Santa Monica’s high-value real estate and business markets.
We can handle the complete project of valuing real estate holding companies from property appraisal through business appraisal and discount appraisal.
This simplifies the process for trustees and attorneys handling the estate.
Frequently Asked Questions About Business Valuations in Santa Monica, California
What sets SB Valuations apart from other firms in Santa Monica?
Our services blend top-tier valuation with accessibility. We provide personalized attention at about half the cost of multi-person regional firms, ensuring high-quality reports tailored to the specific needs of your business in Santa Monica.
How do you ensure reliability in your valuations?
We apply good data with transparent models providing a logical, engineered value. This includes compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) and the National Association of Certified Valuation Analysts (NACVA).
Why do you focus on M&A data for valuations?
M&A data reflects the true character of private business, making it a more reliable basis for valuations than volatile public stock market data. Companies and stock are very different animals.
How do your services benefit small businesses in Santa Monica, California?
We tailor our reports to your budget and needs. A simple need only requires a simple report, and a complex issue requires deep analysis. We always work to provide a 'best value' solution.
What feedback have you received from clients?
Clients often express confidence in our transparent process. They feel better equipped to make decisions, knowing that our methods reflect the realities of their situations.
Ready to speak with a valuation specialist? Reach out today for your free consultation.
Santa Monica Client Success Stories
SB Valuations has supported numerous California businesses through pivotal moments.
Here are some examples:
ESOP Valuation: A medium size company’s annual ESOP valuation consistently came in less than the value of its inventory.
We identified the issue—improper separation of operating and non-operating assets—and corrected it. This change ensured that the founders were no longer unfairly diluted each year.
Franchise Sale Defense: A franchise seller faced claims from the buyer that the business under-performed after the sale.
Our valuation pointed out changes in the buyer’s management practices differed from the seller’s practices. The buyer’s management raised costs, helping prove that the original sale price was more than fair. This saved the seller hundreds of thousands of dollars.
Large Block of Public Stock: After a company founder had gone public and then passed away, the estate had a large block of public company stock to value.
By assessing market ‘blockage’ of the public stock, a significant discount was available, which reduced the estate tax.
Jim Lisi reflects, "Whether it's defending a sale, correcting a flawed valuation or assessing the market, our role is to uncover the truth. By addressing core issues and presenting logical analyses, we give clients the confidence to stand by their decisions."
Our Commitment to Santa Monica Business Owners
SB Valuations values its role in supporting Santa Monica’s business community. We actively engage with exit planning and estate planning organizations and provide services that empower businesses to make good decisions. From startups to established companies, we remain dedicated to helping our clients achieve their goals.
If you are preparing to sell your business, resolve a legal dispute, or plan for the future, SB Valuations offers the expertise and reliability you need. Let us help you understand the value of your assets so you can make confident, informed decisions.
Speak with a Santa Monica Valuations expert today to learn how we can assist with your business valuation needs
