Las Vegas Business Valuation Lawyer
Entrepreneurship is a tenet of the American Dream. Many of us dream of someday operating our own businesses and for some of us, that dream becomes a reality.
When a small business comprises part or all of your marital income, it must be divided during your divorce. This is true for all business types, whether you operate a restaurant, a retail venue, a service business, or a professional practice like a law firm or medical practice. Contact our Las Vegas business valuations lawyers today, we can help.
Determining the Future of your Business
How your business is valued depends on what you want to do with the business. Some divorced couples choose to continue to operate their businesses together. This might be an option if you are capable of working amicably with your former partner and if you both do not want to leave the company. If only one of you wants to continue to operate the business, you might consider a buyout. Through a buyout, one partner purchases the other’s share of the company, then continues to operate it alone. If you both want to leave the business, you might be best served by selling it and sharing the profit.
Valuing your Business as a Marital Asset with a Las Vegas Business Valuation Attorney
There are three methods you, your partner, and your lawyers can use to value your business for division. You might work with a professional business appraiser to determine its value accurately. The methods you might use are as follows:
The Market Approach. With this approach, your business is compared to similar businesses in its niche that have sold recently to determine its value. For the market approach to work, there needs to be enough available data about similar businesses in your area. If your business deviates from the standard for its niche in some way, such as being much older or operating on a different business model, the market approach might not be ideal;
The Asset Approach. The asset approach can seem simple, but it involves many components. To determine a business’ value through the asset approach, its liabilities are subtracted from its assets. Its assets include all office equipment, profits, and equity. Its liabilities include its debt; and
The Income Approach. The asset approach determines a business’ value by comparing its current profitability with its projected growth. The business’ risk level is also considered with this approach. This is the most common way to value a business.
Work with an Experienced Las Vegas Business Valuation Attorney
If you are a business owner going through the divorce process, you will face challenges that non-entrepreneurs do not face. In order to protect your rights and your interest in the business, work with a divorce attorney who has specific experience handling divorces for business owners. Our team at Kainen Law Group is equipped to help you work through the challenges you face with your divorce because of your position as a business owner. To learn more about how we can help you, contact our office today to set up your initial consultation.