SP&H was hired by a business owner of a privately held wholesale business to determine the value of the Business. The business owner needed the value of the business to determine how to plan for his retirement and estate.

• The business began as a small wholesale operation in the 1920s.
• The second generation of the family is running the business and the third generation is in a management position.
• The size and scope of the business' operations had grown significantly. During the late 1990s the business reached its highest level of sales and annual cash flow increased from approximately $400,000 to over $800,000.

The issue faced by the second-generation business owner was to determine what to do with the business. Should he sell it to a third party, gift interests in the business to his son over time, establish a buy-sell agreement and sell the business to his son, or maintain control and ownership of the business until he dies?

SP&H provided the owner with a cost-effective preliminary opinion of value, which enabled him to plan for his estate and determine the future of ownership of the business.