Business Valuation

The story behind the numbers is as important as the numbers themselves. Markets, risk, rights, and restrictions drive value — and explaining those drivers clearly is where Arch Canyon Partners excels. We meld the art and science of valuation to deliver well-reasoned opinions for tax compliance, disputes, transactions, and financial reporting.

Counsel, CPAs, fiduciaries, and business owners rely on valuations that can be explained to a third party: the IRS, a court, an auditor, a trustee, or a board. Our work is built for that audience — documented methodology, supportable assumptions, and conclusions that hold up under scrutiny.

What business valuation is

A business valuation is an independent opinion of value for an enterprise, a business interest, or related equity rights as of a defined date and for a defined purpose. The standard of value, the premise of value, and the ownership characteristics of the interest all matter.

Arch Canyon’s professionals value operating companies, holding entities, and complex capital structures across industries. We tailor the approaches — income, market, and asset — to the facts, and we document why the selected methods fit the engagement.

When a business valuation is needed

Valuation needs arise throughout the life of a closely held business and the ownership of private equity interests. Common triggers include:

• Gift and estate tax compliance and planning transfers
• Shareholder disputes, buy-sell events, and corporate dissolutions
• Employee Stock Ownership Plan (ESOP) formation and annual updates
• C to S corporation conversions
• LLC to C corporation conversions in connection with §1202 / QSBS planning
• Fair value measurements for financial reporting
• Transaction diligence support and related advisory contexts
• Restricted stock, blockage, and other marketability analyses
• Carried interest and preference-structure analyses

If the question is “what is this interest worth?” — and the answer will be relied upon by advisors, regulators, or a tribunal — an independent appraisal is typically the right tool.

What we do

We prepare independent valuations designed for the purpose of the engagement. That includes clarifying the interest being valued, gathering and testing company and market information, selecting and applying appropriate methods, and presenting conclusions in a report format suited to the audience — whether tax counsel, litigation counsel, an audit team, or a fiduciary.

Our business valuation services include:

• Gift & estate tax compliance valuations
• Discount studies (DLOC/DLOM) and fractional interest analyses
• Shareholder disputes and related-party valuations
• Employee Stock Ownership Plan (ESOP) valuations
• C to S corporation conversions
• LLC to C corporation conversions in connection with §1202 / QSBS planning
• Fair value for financial reporting
• Restricted stock studies and blockage discounts
• Carried interest and preference-structure analyses

Process / what to expect

1. Engagement scoping. We confirm purpose, standard of value, valuation date, interest to be valued, and report requirements with counsel or the client’s advisors.

2. Information request and interview. We request financials, governing documents, capitalization, and other materials, and we discuss operations, markets, and known risks with management or advisors as appropriate.

3. Analysis and modeling. We apply valuation approaches supported by the facts, address discounts or premiums when applicable, and stress-test key assumptions.

4. Draft review. We walk through methodology and conclusions with the engagement team so questions can be resolved before finalization.

5. Final report. We deliver a well-supported written opinion ready for filing, negotiation, audit, or dispute use as the engagement requires.

Timelines vary with complexity, data readiness, and the number of entities or classes of equity involved. Multi-entity structures, preference stacks, and dispute matters typically require more development time than a straightforward operating-company appraisal.

Why Arch Canyon

Arch Canyon is a boutique valuation and litigation support firm founded by Adam McArthur, CFA, ASA, ABV, MAFF. Our professionals bring credentials from every major U.S. business valuation credentialing organization, and our work is informed by deep experience in gift and estate, discount studies, QSBS-related valuations, and courtroom settings — including qualification and testimony in California Superior Courts, the U.S. Bankruptcy Court, and the Delaware Court of Chancery.

We do not treat valuation as a template exercise. Rights, restrictions, and economics differ from interest to interest. That is the work.

Our highly credentialed experts provide well reasoned, supportable, and defensible opinions.

Contact: 818.449.6300 | info@archcanyon.com | Agoura Hills, CA

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A controlling interest in an operating company is not the same analysis as a minority interest in a holding entity, a carried interest, or preferred equity with complex preferences.