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.