Rollover as Business Startup (ROBS) Providers and Business Valuation: A Comprehensive Guide for Business Owners and CPAs

Introduction: Using retirement funds to start or buy a business through a Rollover as Business Start-up (ROBS) arrangement is an increasingly popular financing strategy for entrepreneurs. ROBS allows business owners to tap into their 401(k) or IRA savings tax-free and penalty-free to fund a new venture – but it comes with complex rules and risks. In this in-depth guide, we explain exactly what ROBS is and how it works, why obtaining a professional Business Valuation is critical in any ROBS transaction, and we provide a comparative analysis of major U.S. ROBS providers (including Guidant, Benetrends, FranFund, Tenet Financial Group, and others). We’ll delve into key IRS and Department of Labor regulations, industry best practices, and the compliance requirements that can make or break a ROBS-funded business. Throughout, we maintain a professional, authoritative tone geared toward business owners and CPAs, emphasizing the value of SimplyBusinessValuation.com for meeting all your ROBS-related Business Valuation needs. The article concludes with a helpful glossary of terms and a detailed FAQ section addressing common concerns. Let’s dive in.

A CPA’s Guide to Business Valuations

A professional Business Valuation provides an objective measure of a business’s worth – an essential step for informed decision-making in sales, mergers, and strategic planning.

Business valuations have become an essential service for accountants and financial advisors in today’s market. As a Certified Public Accountant (CPA), you are a trusted partner for business owners who rely on your financial expertise. Yet many clients will eventually ask a pivotal question: “What is my business worth?” Answering this confidently requires a solid understanding of Business Valuation principles. This comprehensive guide will equip CPAs and other financial professionals with knowledge about the types of valuations, valuation methods, use cases, and the opportunities of white-label valuation services. Written in a professional, approachable tone, this article aims to be a detailed resource that feels both trustworthy and useful. We’ll also show how services like SimplyBusinessValuation.com can assist you in delivering high-quality valuation reports to your clients, even if you don’t have in-house valuation staff. Finally, we include an FAQ section addressing common questions and a glossary of key terms for quick reference.

Why does this matter? In practice, business valuations underpin critical decisions for small and mid-sized businesses – from selling the company or raising capital, to estate planning and shareholder disputes. However, many business owners skip or delay formal valuations, which can lead to costly mistakes. For example, one case cited by a wealth planner described an owner who thought his business was worth $4 million, only to find through a proper valuation it was actually closer to $40 millioncnb.comcnb.com. Clearly, accurate valuation matters. As a CPA, expanding your competency in valuations not only serves your clients better but also differentiates your practice. Let’s dive into the fundamentals and advanced insights of Business Valuation from a CPA’s perspective.

Valuing a Professional Practice (Dental, Medical & Legal Practices)

Disclaimer: This article is for general educational purposes only. It is not legal, tax, or financial advice. Consult appropriate professionals before making decisions based on this information.

Introduction

Valuing a professional practice – whether a dental clinic, medical office, or law firm – requires blending financial analysis with industry-specific nuances. These businesses have unique intangible assets (like patient or client goodwill) and regulatory constraints that typical businesses do not. If you’re wondering how to value a solo medical clinic or a dental practice you own, this guide will walk through the major valuation approaches, benchmark multiples by practice type, and key legal considerations in such transactions. We’ll also provide numeric examples to illustrate the math behind valuations, and include a glossary of terms at the end for reference.

Contents:

• Valuation Approaches – Income (earnings-based), Market (comparables), and Asset-based methods, with examples

• Benchmark Valuation Multiples by Practice Type – Typical profit margins, revenue multiples, and risk factors for dental, medical, and law practices

• Legal and Regulatory Considerations – Practice ownership laws (CPOM and MSO structures), healthcare regulations (Stark Law, Anti-Kickback), selling a law practice (ABA Rule 1.17), etc.

• Goodwill in Divorce Cases – Personal vs. enterprise goodwill in professional practices and how different states handle it

• Frequently Asked Questions – Common Q&As (e.g. handling partner buy-ins, boosting practice value, etc.)

• Glossary of Terms – Quick definitions of key terms (EBITDA, cap rate, goodwill, etc.)