Houlihan Valuation Advisors

Credible Persuasive Opinions of Value

Background

Houlihan Valuation Advisors was founded in Salt Lake City, Utah in 1987 by David Dorton and Richard Houlihan (founder and named partner of Houlihan Lokey). Today, Houlihan Valuation Advisors has offices in Salt Lake City, Indianapolis, Chicago, and Washington D.C. Since its founding, Houlihan Valuation Advisors has served thousands of clients across the country, including many of Utah’s leading companies. Our clients receive independent valuation services of a quality typically associated with national firms at comparatively low fees and a high level of customer service. These include Litigation Support Services, Business Valuation Services, Fairness Opinions, and Consulting on Valuation Issues.

The Role of a Valuation Expert

A Valuation Expert provides an independent, objective estimate of value. Unlike attorneys, we are not advocates. A Valuation Expert relies more heavily on quantifiable, objective data in performing a valuation, and attempts to remove as much subjectivity as possible.

Whether the valuation is for IRS reporting, a filing with the Securities and Exchange Commission, or a matter before the Court, a Valuation Expert should be able to support the Opinion and his/her reputation as an expert in the field. Should the valuation expert fail to support his/her opinion, the “expert” and the valuation report may be disqualified leaving the client in limbo before the Court, the Internal Revenue Service, or the Securities and Exchange Commission.

According to IRS Section 170(f)(1l)(E)(ii) the term “qualified appraiser” means an individual who

Has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements outlined in regulations prescribed by the Secretary;
Regularly performs appraisals for which the individual receives compensation; and
Meets such other requirements as may be prescribed by the Secretary in regulations or additional guidance.

Upon completion of a project, our clients receive a valuation report that is independent and thorough, which can serve as an objective source for use by third-parties and reduce the risk of shareholder actions against the company’s Board of Directors and Executives. Houlihan Valuation Advisors reports apply widely accepted principles of financial analysis and business valuation such as those outlined in Internal Revenue Ruling 59-60,1959-1 CB 237, and are prepared in accordance with the Uniform Standards of Professional Appraisal Practice and Business Valuation standards through IX set forth by the American Society of Appraisers.

The Gold Standard in Valuation… USPAP & ASA

The Uniform Standards of Professional Appraisal Practice (USPAP)

The Financial Industry Reform, Recovery, and Enforcement Act (FIRREA) makes compliance with USPAP mandatory for all federally related real estate transactions. Standards VIII and X of USPAP apply specifically to business valuations and appraisals utilized by lending institutions backed by federal agencies required to comply with USPAP, which has become widely recognized as the generally accepted standards of appraisal practice.

The American Society of Appraisers (ASA)

The ASA, formed in 1936, is a long-standing multidisciplinary organization that offers education and professional accreditation in many appraisal disciplines including real property, machinery and equipment, personal property, and a number of technical valuation specialties, as well as in business valuation.

Standards Published by Business Valuation Professional Organizations

Numerous valuation industry professional membership organizations also have addressed the issue of business valuation reporting standards. These trade association standards do not have the same legislative authority as USPAP. Three professional associations in the United States that offer education and accreditation in the discipline of business valuation also publish business valuation standards. These are:

American Society of Appraisers (ASA)
Institute of Business Appraisers (IBA)
National Association of Certified Valuation Analysts (NACVA)

In all cases, the standards published by these organizations listed above are considerably more detailed than USPAP, while none of them is in direct conflict with USPAP. Of the above organizations, the standards developed by the Business Valuation Committee of the American Society of Appraisers are the most comprehensive.

Source: Valuing a Business (Fourth Edition – McGraw Hill); Shannon P. Pratt, Robert F. Riley, Robert P. Schweihs.