[WSBAPT] Small Business Valuation

[Eric Nelsen]

I'd say, value only the tangible property, plus A/R if any. There is no value as a "going concern" because sole proprietor is deceased, so there's nothing else left. Anybody who bought "the business" would just get a bunch of used tools and maybe a client list (if it's the kind of business that is primarily repeat customers), so an appraiser isn't going to find much value there.

Under those circumstances I might not even list the "business" as an asset, but just the tools and A/R if any. If decedent had a great reputation and there might be some value in copyright/trademark for the business name, I might reconsider that.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA  98101-2837
phone 206-625-0092
fax 206-625-9040



From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Cyrus Field
Sent: Thursday, April 09, 2015 11:18 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Small Business Valuation

Does anyone have any suggestions on how to value a small sole proprietor business for probate purposes that has less than a $1,000 worth of tools of the trade and less than $20k/year in gross revenue?  Given its small size, and that of the estate in general,  we'd like to avoid the expense of getting a full blown business appraisal if possible. Thanks in advance, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)
phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA
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