Closely-Held Business

Why should Closely-Held Businesses consider valuation?

It takes more than basic accounting when assessing the value of your closely-held business. Sure, focusing on maximizing the bottom line is important, but that’s just one of many considerations that goes into determining a business’ worth. At South Park Advisors, we believe there is no one-size-fits all approach, and every process is uniquely based on each business, sector and industry. We’ll approach your valuation with confidence, competency and industry-specific knowledge to ensure a credible and well-reasoned outcome.

If you’re contemplating retirement or just planning for the future, South Park Advisors will better prepare your company for a smooth transition down the road. We have the knowledge and experience to work with your business throughout various exit planning strategies—whether you’re selling a business over time, selling to a management team, or just selling a business outright, South Park Advisors can guide you throughout the entire valuation process.

How South Park Advisors can help

In addition to ESOPs and Estate & Gift tax matters, South Park Advisors also has experience in other types of ownership transition and business valuation advisory for closely-held businesses.

Buy/Sell Agreements

Setting up a Buy/Sell Agreement between business owners is a strategic way to avoid any potential problems with company ownership down the road. The agreement, which contractually outlines what happens to company stock in the case of any death, disability, dispute or a general transfer of ownership, requires an independent valuation to determine a per-share price. The buy/sell agreement should be reviewed periodically to adjust share prices and requires a qualified valuation professional.

Mergers & Acquisitions

If you’re considering merging with another company or selling your business, an objective valuation is necessary to give peace of mind to negotiating parties in a transaction. The value of a company ultimately could make or break a deal—an outside analysis of your company’s market value is needed to ensure the transaction is fair and reasonable.

Insurance Funding

Increasingly, insurance companies require appraisals on businesses they insure. Life insurance is often purchased to fund a buyout of an owner so a business can continue in the event of an unforeseen change, such as death, disability or dispute. If the value of a business has grown, the benefits of a life insurance policy may not be adequate to fund the buyout, which can lead to legal issues or put businesses at risk.


A business valuation is likely necessary when seeking financing for your business. Many outside investors require an independent business valuation as validation they are making sound investment decisions. Same is the case for small businesses seeking SBA loans—in most packages, a independent business valuation is required.

Recent Podcasts

Business Valuation and Succession Planning Click Link

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