When a business is part of the marital estate in an Illinois divorce, it is essential to value that business as accurately as possible in order to divide the assets fairly between the spouses. However, business valuation can be a tremendously complex process, requiring the input of a team of professionals with knowledge in accounting, finance, and management. Today, we will discuss what you can expect during a business valuation as part of asset division during an Illinois divorce.
Necessary Steps During a Business Valuation
The first step in a business valuation is to identify all of the assets and liabilities associated with the business. This includes tangible assets, such as equipment, inventory, and property, as well as intangible assets, such as goodwill, customer relationships, and intellectual property. It may also include liabilities such as outstanding debt and unpaid taxes.
Once the assets and liabilities have been identified, the next step is to determine the value of those assets and liabilities. This is typically done through a combination of methods, such as cash flow analysis, comparative market analysis, comparative market analysis, and asset-based analysis. The specific methods used will depend on the nature of the business and the industry in which it operates.