Business Valuations for Mergers and Acquisitions
When a business changes hands through a merger or acquisition, establishing fair market value is both a financial and regulatory necessity. Under IRC Section 1060, any transaction involving a group of assets constituting a trade or business requires a purchase price allocation across seven asset classes, with both buyer and seller filing IRS Form 8594 for the transaction year. Discrepancies between filings are a known audit trigger. Financial reporting under ASC 805 adds a parallel obligation, requiring fair value allocations for business combinations to be completed within one year of closing. Our business valuation practice supports all of these requirements with credentialed, defensible appraisals.
AppraiseItNow delivers business valuations for M&A transactions online and onsite throughout the United States, covering companies across a wide range of industries and transaction sizes. Engagements typically require four to eight weeks from start to final report, and we recommend initiating the process 30 to 60 days before anticipated closing to allow adequate time for analysis and auditor coordination. Whether you need a standalone business interest valuation or a full suite of M&A valuation services covering multiple asset classes, our team is equipped to handle the full scope.
Business Interests and Entities We Appraise for M&A
AppraiseItNow appraises a broad range of business types and ownership structures commonly involved in mergers and acquisitions transactions.
- Closely held corporations being acquired in full or partial transactions
- S-corporations and C-corporations with complex capital structures
- Limited liability companies and partnership interests
- Professional practices including medical, dental, legal, and accounting firms
- Manufacturing and industrial businesses with significant tangible asset bases
- Technology companies with substantial intangible assets and intellectual property
- Retail and franchise businesses with multiple locations
- Distribution and logistics companies with fleet and inventory components
- Family-owned businesses transitioning through sale or merger
- Holding companies with subsidiary interests requiring consolidated or individual valuation
How AppraiseItNow Handles M&A Business Valuations
Our appraisers hold credentials from recognized professional organizations including ASA, ISA, AAA, CAGA, AMEA, and NEBB, and all reports are USPAP-compliant and prepared to withstand IRS and auditor scrutiny.
- Clients receive a detailed written appraisal report that documents the valuation methodology, income and market approach analysis, supporting financial data, and final concluded value, formatted to satisfy both IRS Form 8594 requirements and ASC 805 financial reporting standards.
- We work from three years of tax returns, profit and loss statements, balance sheets, and interim financials, and we coordinate directly with attorneys, CPAs, and transaction advisors to ensure the appraisal integrates smoothly into the deal process.
- Report type and complexity affect timeline: summary reports typically complete in four to six weeks, while comprehensive reports for larger or more complex businesses run six to eight weeks, with companies over $50 million in revenue or with multiple locations often requiring additional time.
- Appraisals are delivered online for most engagements, with onsite visits conducted when physical inspection of operations, facilities, or assets is necessary to support the concluded value.