In the current economic downtown business appraisers are finding opportunities in playing a new role – undertaker. There is a death ritual for businesses and appraisers can play an important part in closing a company. Business owners just can’t lock the doors and walk away when it is time to close a business – there are certain legal and financial steps to take. An attorney, a tax CPA, and a business appraiser are the valuable advisors in winding down the business.
A recent Reuters article – “A Chronology: A Road Map to Closing Down Your Business” - listed 14 steps to closing down a business. Step 2 was to put together a dissolution team that includes a valuation expert and Step 4 is to get a valuation. The article outlined two benefits of doing a valuation at this time - preventing future disputes from arising among the business's owners and providing evidence justifying the information for the final tax return.