Situation
An elderly man passed away and his estate needed to be settled. The man had been an active entrepreneur and led the management of ten businesses in related industries. A CPA who had been involved in some of the accounting work for the businesses contacted Lou Pereira, President of Merrimack Business Appraisers, to participate in the vetting process of selecting a business valuation expert.
Six attorneys led the evaluation to select a business valuations professional for this complex valuation need. Some of the ten businesses had different and multiple business partners. Financial statements and tax returns were inconsistent and incomplete and would require careful analysis and adjustment for each of the business entities to calculate total valuation and ownership interest to settle the estate. The attorneys, the decision makers in selecting the business valuation expert, conducted interviews to assess business valuation professionals and their track record, process, and relevant industry experience.
The vetting process concluded and Lou Pereira was hired.
Merrimack Business Appraisers’ Approach
- Lou Pereira methodically and thoroughly analyzed and adjusted the financial statements for each of the ten businesses, removing incorrect data and accounting for missing information over the years, based on available information.
- The information gathering process included interviewing current employees.
- The valuation of each business was determined and documented to then determine ownership interests including the decedent’s valuation based on shares.
Valuation Outcome
The valuation of the decedent’s interests in each of the ten businesses was determined to then settle the estate.
When Values Matter, contact a proven and certified business appraiser.
