Questions You Can Expect:

  • Nature of business
  • Timeline for delivery of report
  • Does it serve a niche market
  • Where is it located, number of locations
  • Is it a corporation, partnership, sole proprietorship
  • What is the purpose for the valuation: dissolution, litigation, estate, buy/sell, etc.
  • Do you need a value of a partial or 100% interest
  • Does the business own real estate or operating assets
  • Number of years in business
  • Gross sales/income
  • What is the date of value
  • Significant issues impacting the value
  • When do you need completed valuation reports

Some people will have experience with having a business valued, but many will not. During this call you will have an opportunity to ask any questions you have about us and our past work. This is a good time to ask who will be performing the engagement and their qualifications with the particular industry. You will receive a fee estimate for services at this time, followed by a written proposal.

The proposal will outline the following:

  • Pricing and retainer amount
  • Timeframe
  • Analyst credentials
  • Standard(s) of value to be used
  • Purpose and objective of assignment
  • Specific services to be provided
  • List of requested information

Requested Information (initial):

  • Income Tax Returns for the last 5 years
  • Financial statements for the last 5 years and year to date, as applicable
  • Furnish copies of any lease where company is either lessee or lessor
  • Copies of pertinent loan documents or economic transfers
  • Shares/% to be valued as well as a valuation date
  • Other information about the company that materially effects the value
  • Copies of operating agreements, articles of incorporation & bylaws as applicable

Research & Analysis:

  • Identification of the appropriate standard(s) of value
  • Assess economic and industry environment
  • Determine presence and degree of influence of internal & external factors
  • Compare Company performance and outlook.
  • Financial statement analysis, valuation analysis and synthesis
  • Financial statement adjustment, as applicable
  • Determination of appropriate income stream
  • Determination of appropriate rate of return (risk)
  • Selection of viable comparable sales transactions
  • Develop & select appropriate methods within the Asset, Income and Market Approaches to value
  • Application of applicable discounts and premiums
  • Documentation
  • Report Preparation
  • Upon completion of the assignment we will supply two completed reports to you and your advisors.