Valuations for Other Corporate Transactions
Blue Abaco Consulting also provides valuation services for other corporate transactions such as:
- Valuations for Buy-Sell Agreements and/or Life Insurance Funding: Closely-held business owners should have a buy-sell agreement in place to ensure that if a triggering event occurs (such as death, disability or retirement), there is a method in place to determine the price that will be paid and how the sale of the stock is to be funded. If a buy-sell agreement specifies that the Company must obtain an annual valuation or if it requires a valuation to be performed upon a triggering event, our firm is available to provide companies with the needed valuations. We will also consult with business owners to ensure they understand the terms of the buy-sell agreement and what will happen if a triggering event occurs. Oftentimes, a buy-sell agreement will specify that a life insurance policy be obtained as a funding mechanism in case a shareholder dies. Our valuations can also be used to help business owners determine the amount of life insurance coverage that may be necessary to fund the sale of the stock.
- Valuations of Stock Options: We work with companies to ensure that they understand how specific terms in their option agreements (such as market conditions, performance conditions and vesting terms) will affect the overall fair value of the stock options and the related compensation expense. We also assist private companies in determining the value of the common stock underlying the options.
- Business Enterprise Valuations for Sale of a Business or Transition Planning: We provide valuations for companies that are contemplating the sale of their business or are considering transitioning their business for growth or eventual retirement.