ARTICLE | January 27, 2025

The value of business and personal assets is a central component in the execution of business and legal proceedings. With extensive experience in this area, our accredited business valuators are widely sought after for their skilled ability to assist clients with these delicate issues.

Understanding the different types of valuations, knowing when a valuation is appropriate and selecting the most qualified provider are key to making a sound decision.

What Is a Business Valuation?
A business valuation is a process similar to an appraisal of a home, in which a professional financially analyzes your entire business. This process includes several different steps, including a valuation of your business’s assets, among other factors, in effort to determine the monetary value of the business at a certain date.

There are a few different methods for valuating a business, and the method selected typically depends upon the circumstances of the valuation. While all methods are considered during the valuation process, the valuator ultimately selects the method that demonstrates the best representation of value.

When Would You Need a Business Valuation?
Here are some reasons why you might need a business valuation report:

• You’re considering selling all or part of your business;
• You need help obtaining financing from a lender;
• You’re planning for a merger or acquisition;
• You’re thinking about estate, gift or tax planning to protect your wealth;
• You’re planning to transition ownership of your business and prepare for retirement;
• You need to update or create a buy-sell agreement for your business;

The Importance of a Business Valuation
Having a professional provide an updated and accurate valuation of your business can bring you enormous benefits and opportunities. For example, you may find an opportunity to sell or merge your business, or add a new partner to your ownership group. In these cases, a business valuation provides you with the tools to make effective and timely business decisions about purchase or buy-in prices.

Additionally, a business valuation can help you plan for the future. You may be reaching retirement age and need to know the value of your business to begin detailing your exit strategy over several years. A business valuation can be used as one of your most strategic business tools.

Selecting a Service Provider
Business valuation is a complex process requiring broad knowledge of accounting, finance, economics, expert application of recognized valuation methodologies, and diligent adherence to professional standards.

We have six team members who have earned the Accredited in Business Valuation (ABV) credential from the American Institute of Certified Public Accountants or the Certified Valuation Analyst (CVA) from the National Association of Certified Valuation Analysts, making us the largest accredited team of any other accounting firm in Whatcom, Skagit, and Chelan Counties. The ABV and CVA certifications ensure our team has the sophisticated understanding of all aspects of business valuation.

To meet our business valuation team, see below.

Our Business Valuation Team

Bethany Andrew CPA/ABV Partner

“Business valuations aren’t always about providing reports that support legal needs. It’s oftentimes much more personal than that. We were helping a client create a financial plan to ensure he and his wife had enough money for retirement. Part of that plan meant selling their business to key employees.

We put together a valuation of the business that helped them understand its worth and how that played into checking off their bucket list items in retirement.”

John Simmons CPA/CVA Partner

“In my experience, I’ve found that business owners can sometimes wait too long to begin thinking about retirement and may have unrealistic expectations of what their businesses are worth. I have found that guiding my clients through the valuation process provides us both with a deeper understanding of the businesses they have built and level sets expectations and provides confidence for future financial decision-making.”

Alan Knutson CPA/ABV/CFF Principal

“I always start with asking my client, “What do you want to get out of this?” In the case where I was performing a valuation for my client going through a marriage dissolution, her response was simple: ‘I don’t know how to answer that because I don’t know what I have.’ Providing a valuation for her meant empowering her to be able to ask better questionsand make informed decisions about her future.”

Adrienne Stewart CPA/ABV Senior Manager

“Watching my clients lose a loved one is always difficult. Seeing them stressed about the logistical tasks they face amidst grieving is even more difficult. Valuing their business for death taxes is one way I can be of assistance. It’s not just making sure their compliance needs are met. It’s bringing them peace of mind and confidence during a time of turmoil, and I’m honored to do that for them.”