Family Business Valuation - crucial process helps to protect family business legacies. One of the nation's leading family business consultants, Don Schwerzler, founder of Atlanta-based Family Business Institute, announces new joint partnership with business valuation experts, SPARDATA

Atlanta-based Family Business Institute and their Internet organization Family Business Experts announced a new strategic relationship with SPARDATA one of the nation's leading business valuation firms.

(PRWEB) April 1, 2004 -- Don Schwerzler, founder of Atlanta-based Family Business Institute and their Internet organization, Family Business Experts, announced a new strategic partnership with SPARDATA, one of the nations premier valuation firms.

Brad Davidson, founder of SPARDATA, and a much sought after speaker on business valuation, is proud of his firms success. Few business valuation firms have more experience and credibility than SPARDATA," says Davidson.

Schwerzler noted that since 1990, SPARDATA has done more than 25,000 business valuations.

What makes SPARDATA so important to family businesses is their special expertise in Family Limited Partnerships", added Schwerzler. FLPs are one of the most important tools used to transfer assets from one generation to the next".

Family Limited Partnerships (FLPs) are recognized by attorneys, accountants and other professionals as an outstanding tool for estate planning, asset preservation and charitable giving. The FLP takes advantage of a well known partnership attribute: assets held by a partnership are worth less (often 30% to 40% less) than otherwise due to the partnership interests lack of control and marketability. SPARDATA expert appraisers value the FLP in a manner complying with Revenue Ruling 59-60," notes Davidson. That ruling is one of the most important guides for professional appraisers for estate and gift tax purposes.

Hundreds of law firms, accounting firms and financial advisory firms use SPARDATA as their business valuation provider. Some of the most prominent include New York Life, Morgan Stanley, MassMutual, PNC Bank, Transamerica, MONY and Piper Jaffray.

Federal regulatory agencies using SPARDATA include the IRS, Department of Labor and the Securities Exchange Commission.

So many family business owners fail to recognize that a business valuation is not a one size fits all", says Schwerzler. There are many different reasons for doing a valuation and each has a different emphasis on how the valuation is structured.

Davidson suggests 9 reasons why family business owners would need a business valuation:

Owner Wants To Retire

How big is your retirement nest egg? It is impossible to say unless you know what your business is worth.

Owner Wants To Sell

A valuation protects you from low-ball offers as well as unrealistic expectations. It also makes your business look more credible to buyers.

Owner Has Kids

If one gets the business and the other(s) do not, knowing your business' value lets you treat them all equally.

Owner Has Partners

To insure business continuity if one leaves or dies, the partners should have a buy-sell agreement pegged to the business' value and funded with life insurance.

Owner Wants To Expand

Lenders and investors like third-party appraisals.

Owner Doing Estate Planning

Do you have an estate tax issue or not? Impossible to say without a business appraisal.

Owner Has Employees

Smart employers use stock options pegged to the business' value as "golden handcuffs" to retain key employees.

Owner Getting Divorced

Having the business valued by a nationally respected appraisal firm makes negotiations much easier.

Owner Likes Bragging

It is fun to know your business grew 25% more valuable last year. Having it valued regularly makes it possible!

For more info: www.family-business-experts.com