Independent, credentialed valuations of privately held businesses for transactions, tax planning, financial reporting, strategic decisions, and dispute resolution — built on institutional methodology and signed by senior professionals.
Request a ValuationThe value of a privately held business is not a single number — it is a conclusion reached through a structured analytical process, calibrated to the specific purpose of the appraisal, the standard of value required, and the particular facts of the business and its industry. The same company can have meaningfully different values for a tax filing, a shareholder buyout, a financial reporting engagement, and a potential sale.
At LA Valuations, every engagement is led by a credentialed senior professional — CFA, CBV, ABV — with experience across institutional buy-side, sell-side, and valuation contexts. We apply the same rigorous methodology used by major accounting firms and investment banks, delivered with the responsiveness and direct access that a boutique practice provides.
Our valuations are used by business owners, investors, attorneys, tax advisors, auditors, and courts. Whatever the purpose, our reports are built to meet the standard required by the audience that will rely on them.
Business valuation is governed by three recognized approaches — income, market, and asset-based. A credible appraisal considers all three and applies professional judgment in reconciling and weighting the results. The appropriate methodology depends on the nature of the business, the purpose of the appraisal, and the availability and quality of relevant market data.
Values the business based on its capacity to generate future economic benefits, discounted or capitalized to a present value.
Best suited for: stable businesses with projectable cash flows, professional practices, and service businesses.
Values the business by reference to actual transactions or public company trading multiples for comparable businesses.
Best suited for: businesses with readily identifiable comparables in active M&A markets.
Values the business based on the fair market value of its underlying assets, net of liabilities.
Best suited for: asset-intensive businesses, holding companies, and investment entities.
The concluded value of a business interest often requires the application of valuation discounts or premiums that reflect the specific characteristics of the interest being valued — its size, degree of control, and marketability.
When valuing a minority interest in a closely held business, the lack of control over distributions, management decisions, and liquidity events warrants a discount relative to the pro-rata value of the enterprise. We support DLOC analyses with robust empirical data from control premium studies and court-accepted methods.
Private company interests lack the instant liquidity available in public markets. Our DLOM analysis draws on restricted stock studies, pre-IPO studies, and option-based models to support a well-documented discount that reflects the specific liquidity characteristics of the subject company.
When business performance is substantially dependent on the skills, relationships, or reputation of a key individual, the risk of that individual's departure warrants consideration. We size key person discounts based on owner dependency analysis, revenue concentration by relationship, and market evidence.
In acquisition contexts where a controlling interest is being valued, a control premium — reflecting the ability to direct corporate policy and realize synergies — may be applicable. We provide empirically supported control premium analyses consistent with current M&A market data.
The appropriate report format depends on the purpose of the valuation and the requirements of the party relying on it. We prepare valuation reports in formats consistent with USPAP, AICPA SSVS No. 1, and applicable professional standards.
A comprehensive, self-contained report documenting all analyses, assumptions, and conclusions. Required for audit support, IRS submission, litigation, and regulatory purposes. Includes full methodology disclosure and source citations.
A concise report presenting the valuation conclusions and key supporting analysis. Appropriate for transaction support, shareholder communications, and planning purposes where a full detailed report is not required.
A limited-scope engagement that applies agreed-upon procedures to produce a value conclusion. Used for planning purposes, preliminary negotiations, and situations where the parties have agreed on methodology in advance.
We serve clients throughout Los Angeles, Orange County, and the greater Southern California region. Contact us to discuss your needs.
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