In This Section

Assessing the value of a family business

A Pennsylvania divorce is an emotionally charged process, even if in the best of circumstances. Despite the turmoil at home, the rest of your life must continue. If you or your spouse have a business, chances are it is the largest asset you own. As a result, it becomes part of the settlement, which means an accurate valuation is critical when dividing property. The team at Bononi & Company, P.C., understands the challenges clients face navigating a divorce while operating a business. They help prepare you for the financial decisions that occur throughout the process.

According to Ellrich, Neal, Smith & Stohlman, P.A., a closely held family business has a unique set of challenges when it comes to assessing its value. While an experienced appraiser looks at the organization impartially, they apply subjective judgments to come up with a fair market value. There are three approaches utilized in business valuations: 

  • The asset approach looks at the value of the company based on its net assets.
  • The market approach uses qualitative factors when identifying recently sold comparable companies within the same or similar industry, including risk, growth, products and services and business size.
  • The income approach considers the current value of the future revenue stream.

After completing an initial valuation, the expert discounts for lack of liquidity, lack of marketability and if the owner does not possess full control of the company. They also apply normalization adjustments and regulatory requirements, which can have significant ramifications in the final business valuation. Visit our webpage for more information on this topic. 

No Comments

Leave a comment
Comment Information

We look forward to helping resolve your legal issues.

Call 866-343-8555 today to arrange a confidential consultation with an experienced lawyer at our firm. Or, if you prefer, complete the brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Bononi & Company, P.C.
20 N Pennsylvania Avenue
Suite 201
Greensburg, PA 15601

Toll Free: 866-343-8555
Phone: 724-972-4180
Fax: 724-836-0370
Greensburg Law Office Map

Latrobe Office
1315 Ligonier St
Latrobe, Pennsylvania 15650

Map & Directions

Johnstown Office
319 Washington Street
Suite 320
Johnstown, Pennsylvania 15901

Map & Directions

Review Us Google Map Google Map Google Map
Email Us For A Response