A Fair Market Valuation (FMV) is a thorough review of the financial and operational attributes of a business enterprise, taking into consideration the inherent risks of the general marketplace as well as the specific risks of the particular firm. Absent a public marketplace for establishing the value of a business, a FMV of a privately held business is the primary means of determining the value of a firm.

We provide valuation services to various firms across the insurance distribution and related sectors. A FMV report provides great insight to management regarding the internal and external factors affecting the value of the business. FMV reports are commonly used to establish the value of a firm for business planning and in support of both shareholder agreements and ownership perpetuation plans. Likewise, FMVs are used to periodically gauge the health and value of the agency. FMVs are required annually for Employee Stock Ownership Plans (ESOPs). In addition, a FMV may be used in conjunction with mergers & acquisitions, fairness opinions and estate planning.

Other common uses of FMV include:

• Valuation of stock options, stock grants, and stock-appreciation rights
• Valuation implications of minority-ownership positions
• Support of purchase-price allocations
• Restrictive covenant and personal goodwill valuations
• “C” to “S” Corporation conversions