RVFF Consulting offers certified value examinations, defensible value measurements and written Detailed or Summary explanations for the Conclusion-of-Value achieved in accordance with the professional and regulatory guidance that define the Standard-of-Value and the Premise-of Value to be applied in support of the Purpose for the Business Valuation Engagement.
If a more restricted examination and measurement is required, where specific approaches and methods are agreed to in advance, a more limited Calculation-of-Value can be achieved and reported in a Calculation Report as specified within SSVS.
The Standard-of-Value achieved will define the type of equivalency to be received in an exchange of value:
The Premise-of-Value defines the expected utility of the business as a "Going-concern" or as if in "Liquidation"
Both the Standard-of-Value and the Premise-of-Value impact the valuation methods applied in the measurement.
Treasury Department Revenue Ruling 59-60 "...the amount at which the property would change hands between a willing buyer and a willing seller, when the former is not under any compulsion to buy, and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts"
FASB ASC 820-10-20 "...the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date"
FASB ASC 820-10-35-5 "...a fair value measurement assumes that the transaction to sell the asset or transfer the liability either occurs in the principal market for the asset or the liability or, in the absence of a principal market, the most advantageous market for the asset or the liability" (an 'exit' price).
The value to a particular buyer, in contrast to the value to all willing buyers (see Fair Market Value). This value is not for a representative buyer within a large population of buyers, but rather the value to a specific individual with unique investment criteria that are met through the transaction.
Represents the value based on an analysis of the fundamental characteristics of the business assets, earnings power, dividends, capital structure, management quality, etc. regardless of their immediate appeal among other market participants.