There are as many reasons why and clients who approach Rosetta to value a business as there are business scenarios. Each case is unique, but all require backup that is supportable, repeatable, and conclusive. The more common examples are:
Buy/Sell, Key Man Insurance. Typically, an internal situation where responsible owners are looking to ensure the continuation of the enterprise for all concerned—owners, spouses, employees, and clients. Not only can Rosetta offer a fast and economical analysis, but also provide methodologies to forecast future values in between periodic formal updates.
Most Probable Selling Price (MPSP). Often, management needs to know this for strategic planning, potential sale, and for their own personal financial planning reasons as for their professional advisors. Determining the exact purpose of a valuation means Rosetta can also help position the business in the proper context to any and all potential outside parties.
Bank/SBA Loan Valuations. Lending institutions require specific Standards of Procedure (SOP) for calculating the value of the firm, which determines the maximum loan amount according to their Loan-to-Value (LTV) ratio. Whether the funds are to be used for expansion, acquisition, or sale, Rosetta ensures the valuation effort never hinders the loan process.
Estate and Gift Scenarios. The IRS has strict guidelines not only on the standard of value to use, but also the definition of what is being valued for different sections of the Code. Rosetta clearly identifies the exact reason and parameters of each valuation in the beginning, so you and your professional advisors know what the final product will be. The completeness of the reports offers the confidence that the value will stand up to close scrutiny.
Litigious Situations. Divorce, partnership dissolution, and IRS investigations are sometimes the events that befall even the most conscientious of planners. When having professional support on your side is critical, Rosetta provides the experience, analysis, reporting, and other ancillary services. We work with all of your other professional advisors all the way through whatever level of conflict resolution is required. If Rosetta is not comfortable with supporting your particular situation, our network of experienced associates is there to work with you.