Experienced Team of Senior Professionals
HAP provides business valuation services to companies, family offices, private equity groups, business owners and entrepreneurs in Asia and the United States, regarding business interests, securities and intellectual property for situations and needs such as:
• Sale of business or acquisition
• Sale of a minority interest in business
• Private equity and debt security valuation
• Private security portfolio valuation
• Option and equity incentive plans
• Buy-Sell provision in partnership agreement
• U.S. investor visas (E-2)
• Estate and gift tax
• Intellectual property
• Financial reporting
We do not provide appraisal services for real estate assets, machinery or equipment.
The valuation practice of HAP is led by Michael Guthammar, a Certified Valuation Analyst (CVA) with more than 20 years of experience and member of the National Association of Certified Valuators and Analysts (NACVA). To discuss your business valuation needs please contact him at email email@example.com.
We follow the valuation standards set by NACVA and the International Valuation Standards Council (IVSC).
Business valuations are generally based on analyzing the value of assets and liabilities, income and market value as described below.
Asset Based Approach
The asset based approach to valuation involves an analysis of the economic worth of a company's tangible and intangible, recorded and unrecorded assets in excess of its outstanding liabilities. This approach is important to consider for holding companies and other asset rich companies, but should also be considered for companies with poor financial performance. The Asset Based Approach is most commonly applied through the Adjusted Net Assets Method. This method values a business based on the difference between the fair market value of the business assets and its liabilities. The book value of all assets, both tangible and intangible, are adjusted to their fair market value (typically measured as replacement or liquidation value) and then the total adjusted value is reduced by the fair market value of all recorded and unrecorded liabilities.
The income approach involves determining a value based on the anticipated future benefits, i.e. profits or cash flow, from the business. This approach therefore typically analyzes the historical profits or cash flow of the business and/or its projected future performance. Commonly used methods under the Income Approach are Capitalized Earnings and Discounted Cash Flow.
The concept behind the market approach is that the value of a business can be determined by reference to reasonably comparable guideline companies for which transaction values are known. The values may be known because these companies are publicly traded or because they were recently sold and the terms of the transactions were disclosed. Commonly used methods under the Market Approach are Guideline Public Company, Private Company Transaction, and Prior Transactions.