Business valuation is the act or process of determining the value of a business enterprise or ownership interest therein. The discipline of valuation, like most disciplines, is a multifaceted field. To truly succeed one must be in constant pursuit of greater knowledge and an expanding skill set. This discipline dynamic has become more apparent in recent years as the wealth of information has blossomed, the demand for services has intensified, and the keen eyes of the judiciary, legal and regulatory communities have put these services under the microscope.

For these reasons, Cendrowski Corporate Advisors is a member in the National Association of Certified Valuation Analysts, and our valuation professionals have earned the Certified Valuation Analyst (CVA) designation. The CVA designation is available only to licensed CPAs who have completed the training and experience certification process, and additionally maintain an annual level of continuing education.

The valuation equation includes a large number of variables depending on the particular situation and purpose of the valuation, thus another reason to ensure the valuation is performed by a certified professional. Every valuation situation, however, requires the objective, methodical determination of fair value.

Situations that frequently utilize professional business valuations include:

> Sale or purchase of a business - In an arms-length transaction, both parties seek to arrive at a fair value for the business being transferred.

> Financing transactions - The finance amount is frequently influenced by the fair value of the underlying business.

> Owner disputes - Owner buy-outs based on fair value of the business.

> Divorce - Divorce litigation requires the determination of the fair value of assets held by the parties.

> Tax filing - Tax calculations are based on the fair value of the company.