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Subchapter S
Conversions and Bankruptcy
Last time I mentioned 2 of
the 9 different scenarios we’ve identified where your clients
may WANT or NEED a business valuation.
They were Buy-Sell
Agreements and Shareholder and Partnership Buyouts and
Disputes. Today I want to briefly touch on two more
of them.
The first
is Subchapter S Conversions.
If one of your clients is
planning to convert from "C" to "S" or "LLC" corporate status,
they should have a valuation done as of the conversion date to
determine the tax calculation for the IRS. If their company is
sold prior to the ten year holding period, there is a tax due
on the built-in gain of value from the date of conversion.
The
second scenario is Bankruptcy.
Bankruptcy is a legal
admission of the inability of a company’s ability to meet and
pay its liabilities. Therefore knowing the bankruptcy value of
their business and its assets is critical to the restructuring
process and is influential to maintaining the confidence of
your client’s creditors' committee or trustee.
Marketing
Business Valuations to your Clients
Now if you look at the
original email, I’ve attached a new
2-page flyer in a PDF
format that explains WHY a business valuation is important to
small business owners, how to get started and the Valuation
Process itself. I would suggest you distribute this
information physically through the mail or electronically via
email to your client list.
When you do this you’ll
begin to attract questions and initiate discussion with
your clients who may WANT or NEED a business valuation.
My personal suggestion is
to print, personalize and distribute this flyer to your
business clients so if and when they find themselves in one of
these situations, they’ll contact you to perform the business
valuation they need.
If you mail out monthly
statements to your clients just insert this flyer into an
envelope with the owner’s name on it so it gets forwarded to
them.
Next time I’ll talk about
3 new different scenarios you’ll run into with clients
where they may want or need a business valuation.
If you want to listen to
this information in audio,
just click on the link and it will
take you back to the audio postcard. Congratulations
again for joining our Business Valuation network. This is Troy
Patton and I’ll talk with you soon.
How To
Start Your Business Valuation Process:
Our process consists of
only a few steps to start a valuation for your client:
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You contact us to find
our how much to charge for the valuation. Let us know the
industry, why the valuation is needed, and the size of the
company.
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We will prepare and send an
engagement letter to your client from our firm which they
will sign and send back to us with payment in advance.
This takes the risk and conflict of interest out of your hands
and off your E&O
Insurance. (This is how 98% of our valuations are
prepared. The others we prepare are for firms who want their
name on the valuation.)
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Complete the input forms
for the valuation (we will provide them to you) and then you email them
back to us.
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We will complete the
valuation and email a copy of it to you for review before
we issue the report to the client.
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You get paid. It's that simple.
Patton Business Valuations
becomes your outsourced partner for business valuations
where we prepare the valuation, deliver it to you to present
to your client (or deliver it directly to your client if you
prefer) and you make nearly $800 to $1,200 for a few
hours of work.
Our standard pricing is
just $2400 for a Divorce valuation, $3000 for
Buy/Sell and $3600 for an Estate valuation. For
any other type, just email me at
tpatton@pattonvaluations.com or call me toll-free at
800-800-1776.
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To get started on a valuation
right now call me at
800-800-1776, I'm at extension 52 and if I'm not in
just leave me a message. |
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Troy C. Patton, CPA |
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PRIVACY POLICY -
Patton Business Valuations respects you and your
Client's privacy and
will not give, rent, sell or lend your Client's contact
information, business valuation information, email address or
other contact information to any outside 3rd party,
group or company. |
Call our offices at 800-800-1776 if you have any questions or if you have another client in need
of a Business Valuation.
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