Small Business Valuations in Bakersfield

Determining the worth of your business or assets is crucial for business, estate and wealth planning decisions. At SB Valuations, we serve small businesses in classic California towns like Bakersfield that often started in oil and agriculture in the early 1900s, and have now diversified their economies. This article delves into the importance of valuations of Bakersfield companies, introduces SB Valuations, and explains why we are the best option for business valuations in between Los Angeles and San Jose. Reliable valuations are important for:

Mergers and Acquisitions

Mis-valuation of a business can create situations where the negotiation gap annoct be closed and break a deal. A study by Deloitte highlights the significant role of valuations in successful mergers and acquisitions.

Litigation

In disputes between partners and investors, a dependable valuation is essential for fair settlement. Bringing SB Valuations into a dispute early, while the situation is amicable can aid settlement negotiations because a clear, transparent valuation can help both sides understand the realistic settlement range.

Estate and Gift Planning

The IRS is tightening up rules so that poor appraisers can be disqualified. The risk of employing valuers that do not follow good procedure is higher than it has ever been. Proper valuations ensure compliance with tax laws and while helping to reduce taxes.

Ready to receive a valuation in Bakersfield for your business and/or assets? Reach out today.

Introduction to SB Valuations and Our Expertise

At SB Valuations, we specialize in providing expert small business valuations in the cities towns of California. We offer a unique blend of personalized service, experience in three counties and extensive industry knowledge.

Why Choose SB Valuations?

Led by James Lisi, a seasoned professional in the field, we have a track record of delivering comprehensive valuations, and are highly respected in the profession - writing and teaching nationally.

We take a client-centric approach, ensuring that each valuation is tailored to the specific needs of your business.

With a deep understanding of California's business landscape, we apply insights that large firms and out-of-state firms cannot match.

"Our commitment to reliability and personalized service sets us apart. We don't just provide valuations; we offer peace of mind." - James Lisi

To learn more about how SB Valuations can help with your specific valuation needs, please reach out directly for a consultation.

Our Services and Approach

We offer a wide range of services to meet the diverse needs of our clients. Our comprehensive approach ensures that every valuation is thorough, dependable, and tailored to your specific requirements. Other reports offered are

409a Valuations

We provide current-value 409a valuations to ensure compliance with IRS regulations. These reports are required for companies offering offer stock options to their employees. Management can decide whether to dilute founders when they issue options, or not. These are key decisions that become part of valuation. Choosing SB Valuations is best for valuations made before external capital has been invested into the company.

Divorce and Partner Exit Valuations

When a partner exits a business, knowing the value of their share is crucial. We provide fair and dependable valuations to support these transitions.

Complex Valuation Situations

We appraise securities in complex capital structures, help with business damages and value private company financial instruments like promissory notes, tenant-in-common interests, and complex equity capital structures.

Frequently Asked Questions about Valuations

Q: Why do I need a business valuation?

A: Business valuations are essential for making informed financial decisions about your largest family asset, whether you're selling your business, planning your estate, or involved in litigation.

Q: How often should I get my business valued?

A: The closer ownership is to exit, or if the business plan includes a capital event, it is a good idea to get a valuation every two years. Otherwise, a five year cycle is sufficient to keep succession and wealth planning on track.

Q: How long does the valuation process take?

A: Part of the time is collecting information, and that is client-dependent. After everything is collected we aim to complete valuations within three weeks.

Q: What information is needed for a business valuation?

A: Typical information includes financial statements, tax returns, details about business operations, and market data.

Q: How do you ensure the dependability of your reports?

A: We start with M&A data and build the report from sales of similar businesses - in the industry, similar in revenue and matched for profitability.

Q: What sets you apart from larger firms in terms of service and pricing?

A: We provide top-level valuation reports, and provide direct access to the valuer at about half the cost of multi-person regional firms.

Q: What trends are you seeing in the business valuation industry, particularly for small businesses?

A: Valuation multiples move with inflation and the ten-year treasury, but they don’t move dramatically or quickly like public markets. Artificial intelligence is helping us do our work better and faster while avoiding price increases.

Client Engagement and Success Stories

SB Valuations has multiple successes in reducing share value for real estate holding companies. One notable case was a $14 million tax assessment from the IRS that was turned away without going to Tax Court. SB Valuations defended the client's position with detailed briefs, ultimately causing the IRS to abandon the case. This defense work became a key element in a discounts paper published in the Journal of Forensic and Investigative Accounting.

In another case, SB Valuations corrected a competitor’s ESOP valuation. The company was previously appraised by a competitor at less than the value of the cash and inventory on hand. SB Valuations' proprietary models separates non-operating assets from operating assets, avoiding this mistake - every time. Solving the problem for the client stopped ridiculous dilution of the founders that occurred every year when the ESOP participants were credited with their shares.

Get Started with SB Valuations Today

For those in Bakersfield and throughout California looking to understand the value of their small business or its securities, SB Valuations is ready to assist. Whether you are preparing for a sale, handling a transition, or navigating legal challenges, SB Valuations' team is equipped with the expertise and experience to provide clear, actionable insights.

By choosing SB Valuations, you're not just getting a number at the end of a report; you're gaining a partner in making key decisions.

Contact SB Valuations today and take the first step towards understanding the true value of your Bakersfield business and/or assets.