Masonry Magazine March 2001 Page. 36
PUTTING
A VALUE
ON THE
BUSINESS?
By Mark E. Battersby
H
ow much is your masonry business worth? Of all the things asked of contractors, placing a value on the masonry operation is often the most difficult. This is, in part, because the value of any business often varies depending upon who is asking the question.
A contractor attempting to sell his or her masonry business will, quite naturally, place the highest value possible on his or her operation while the potential buyer wants to acquire the business as inexpensively as possible and place a lower value on the operation. From these differing vantage points a market value sometimes results.
Fair market value is defined as the price which property will bring when offered for sale by a willing seller to a willing buyer, neither being obliged to buy or sell. While a variety of factors can and do affect the selling price of many masonry businesses, the Intenal Revenue Service has its own views of the value of a business.
There are those unfortunate occasions when it is both necessary and painful to place a value on the masonry operation. Obviously, when death occurs, it is far better for the survivors or the estate to place a value on the masonry operation rather than have a value forced upon the estate by the IRS.
Whenever the owner of a masonry business dies without a buy-sell agreement in place, no keyman insurance in effect or some other established valuation of the operation, the danger is that the IRS will attempt to place its value on the
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Removes excess mortar from block or brick
6 foot pole
• Removes fins and burs from concrete wall form joints
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Less standing on Scaffold Rungs
Less Reaching
Less Dropping of Rubbing Block
Less Down & Up by Dropping Block
Can Clear Room & Hallways of Scaffold
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(Continued on page 38)
WHAT
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FOR?
CONTINUE THE
ONGOING
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36 MASONRY MARCH, 2001