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Since 1979, Davis/Chambers has delivered independent, defensible valuations for closely held businesses, partnerships, and a host of financial securities and intangible assets. Our reports adhere to the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice (USPAP), the American Society of Appraisers’ Business Valuation Standards, and IRS and Department of Labor guidelines as applicable, including Revenue Ruling 59-60. Challenges to our valuations have been extremely rare.
We serve clients across industries – manufacturing, distribution, energy, technology, construction, professional services, healthcare, you name it – and across geographies. We value entities of all sizes – from startups and Main Street businesses to large corporations with revenues over $1 billion. We have deep expertise in complex valuation matters, and our team includes Accredited Senior Appraisers (ASA), CFA charterholders, MBAs, and JDs.
We are available to discuss specific valuation requirements with prospective clients and their trusted advisors – attorneys, accountants, financial advisors – without charge to determine how we may be of service.
Defensible, well-reasoned valuations are critical for tax planning and regulatory compliance. At Davis/Chambers, we have decades of experience providing fair market value opinions to business owners, executives, and wealthy individuals and families in the following areas:
When you transfer ownership of a business – whether during your lifetime as a gift or at death as part of your estate – the IRS requires that the value of that business interest be reported accurately. This value determines the amount of gift tax or estate tax owed and ensures compliance with federal tax laws.
Because privately held businesses don’t have a readily available market price like publicly traded stocks, a professional valuation is needed to establish fair market value. This valuation must follow IRS guidelines and withstand scrutiny in case of an audit.
Davis/Chambers prepares IRS-compliant valuation reports to support your transfer of interests in closely-held businesses, family limited partnerships, and LLCs.
409A Valuations and 83(b) Elections
When companies grant equity, such as stock options, restricted stock, or other ownership interests, tax rules require that these grants be valued correctly.
409A Valuations. If a company issues stock options or similar rights, the IRS requires that the exercise price be at least equal to the fair market value of the company’s stock on the grant date. A formal valuation ensures compliance with Section 409A of the tax code. Without it, employees could face penalties and extra taxes if the IRS later determines the price was too low.
83(b) Elections. When someone receives restricted stock, they can choose to pay taxes upfront on the current value rather than later when the stock vests (and may be worth much more). To make this election wisely, you need an accurate valuation of the stock at the time of grant. This helps minimize tax risk and avoid disputes with the IRS.
Davis/Chambers prepares defensible, IRS-compliant valuations that protect both the company and the recipient from unexpected tax bills and penalties in connection with the equity grants.
Charitable Gifts
When you donate shares of a privately held company to a donor-advised fund, foundation, or other charitable organization, the IRS requires you to report the fair market value of the gift for tax purposes. Unlike publicly traded stock, there’s no market price for closely held shares, so an independent appraisal is necessary to determine what those shares are truly worth. A qualified valuation ensures:
Davis/Chambers provides defensible, IRS-compliant valuations that establish a credible, objective basis for your charitable gift and help avoid potential disputes or penalties.
S Corporation Elections, Deemed Liquidations, and Other Restructurings
There are numerous entity restructurings, tax elections, and corporate transactions that give rise to the need for a defensible, independent determination of fair market value.
An ESOP is a retirement plan that allows employees to own shares in the company they work for. It’s a way to give employees a stake in the business, often as part of succession planning or to reward long-term service. Because ESOP shares are not publicly traded, there’s no market price to reference. The Department of Labor and IRS require an independent, qualified valuation every year to determine the fair market value of the company’s stock. This annual valuation ensures:
Davis/Chambers performs valuations for initial ESOP transactions and ongoing annual updates in compliance with ERISA and Department of Labor requirements.
Personal Goodwill refers to the value of a business that is tied specifically to an individual’s personal reputation, relationships, skills, or expertise – rather than to the company/entity itself. For example, if customers stay loyal because of the owner’s personal connections or specialized knowledge, that value is considered personal goodwill. Personal goodwill often comes into play in situations where ownership changes or legal matters require separating the value of the business from the value attributable to the individual. The 2 most common scenarios include:
Davis/Chambers provides personal goodwill valuations in the context of both tax planning and litigation. Our independent valuations provide a defensible, well-documented analysis that can withstand IRS scrutiny or legal challenges and help avoid disputes and unexpected tax consequences.
Valuation opinions from a credible, independent expert often play a central role in strategic and legal matters that have long-term consequences for the business, its owners, and their employees. At Davis/Chambers, we assist clients with a range of these critical valuation issues, including:
Selling a business is often a once-in-a-lifetime event, and getting the value right is critical. A professional valuation provides a clear, defensible estimate of what your company is worth, helping you set realistic expectations, negotiate confidently, and maximize after-tax proceeds. It’s the foundation for a successful exit strategy.
Davis/Chambers regularly provides pre-transaction valuations to inform exit planning or guide negotiations and maximize after-tax proceeds.
If you need help with sales process, don’t hesitate to call! Please see our M&A Advisory Services for more information.
When owners part ways – whether through retirement, restructuring, or dissolution – a valuation ensures fairness and compliance with the terms of buy-sell agreements. Independent appraisals are crucial to prevent disputes (and hard feelings) by providing a transparent basis for dividing or transferring ownership interests.
Davis/Chambers prepares objective and well-reasoned valuation analyses to support ownership transitions and dispute resolution.
Shareholder disagreements, contract disputes, and other legal matters often hinge on the value of the underlying business. A qualified valuation offers objective, well-documented opinions that can withstand scrutiny in court or arbitration, protecting your interests and supporting a fair resolution.
The Davis/Chambers team prepares defensible valuations and gives expert testimony for shareholder disputes, mediation, and arbitration. In addition, we have been engaged as consulting experts to assist in analyzing a case during its early stages, including:
In divorce proceedings, valuing a closely held business accurately is essential for equitable property division. An independent appraisal provides clarity and credibility, reducing conflict and ensuring that both parties have a fair basis for negotiation or settlement.
Davis/Chambers has been called upon to provide expert testimony at trial or arbitration and engaged as consulting experts to assist in the following areas:
Patents, trademarks, software, and other intellectual property often represent significant value…but that value isn’t always obvious. A specialized valuation identifies and quantifies these intangible assets, supporting transactions, tax planning, and financial reporting with defensible figures.
Davis/Chambers has experience valuing a wide range of intellectual property, including customer lists, patents, trademarks, brands, software, and copyrights, among others.
When a company undertakes a merger, acquisition, or major transaction, boards and fiduciaries must ensure the deal is fair to all shareholders. A fairness opinion provides an independent assessment of the transaction terms, while valuations for dissenting shareholder actions help resolve disputes over buyout prices.
Our experience and fluency in business transactions enables our firm to efficiently analyze the deal structure, terms, price, legality and potential conflicts. We also perform intensive analysis of the risks (general economic, industry, company specific, etc.), comparable transactions, and other internal and external factors that help determine whether the transaction is fair.
Public companies and many private businesses must follow accounting standards that require certain assets and liabilities to be reported at fair value (as described in ASC 820) rather than historical cost. Because these values affect financial statements, auditors and regulators expect them to be objective, well-supported, and prepared by a qualified appraiser. At Davis/Chambers, we provide independent valuations to ensure compliance with accounting standards, reduce audit risk, and provide transparency for stakeholders. Our valuations for financial reporting typically include:
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