Each business valuation assignment presents a unique set of circumstances that requires a customized approach to create valuation reports suitable for a client’s needs. Our policy is to perform a free initial consultation, prepare a customized “Valuation Project Plan” and provide an accurate project quote prior to formally being engaged and accepting any project fees. We work closely with the owner and management team to gain an understanding of a company’s history and the circumstances that might have an impact on its value.
Preliminary Discussion
The valuation process begins with a discussion with the business owner and management team to determine the use, scope and objectives of the project.
Project Proposal
Upon gaining a complete understanding of your objectives, Estate Valuation Group will provide a written Valuation Project Proposal. This Project Proposal will define the scope of the project, the expected timeline for completion of the project/report, and a free quote for our valuation services.
Data Gathering
We compile information about your company through detailed questionnaires, owner and key personnel interviews, and review of various financial documents. Proper valuation techniques require a thorough understanding of financial statements and adjustments for owner benefits/perks, one-time events and non-recurring revenue/expenses.
When applicable, we use a collaborative approach with clients to generate projections of anticipated future performance and profits.
Research and Analysis
A thorough valuation involves researching industry trends, competitors, general and local economic factors, potential company specific risks and opportunities, and available public and private transactions involving similar size and situated companies.
Report Preparation and Presentation
The valuation report includes a write-up of the data, research, and analysis performed during the project. Also included is a conclusion of value, along with any relevant assumptions and disclaimers.
A draft valuation report is provided for the client’s review, and the client is encouraged to provide clarifying information and comments. After the review process, a final report is issued by Estate Valuation Group to complete the valuation project engagement.
Our Fees:
Estate Valuation Group provides timely business valuation services at reasonable fees. In establishing our fees, variables taken into account are the number of assets valued, travel time and expenses, availability of accurate and complete financial reports, accessibility of owners and key management personnel, and the type, methods, and purpose to be incorporated into the final valuation report document. Below is a list of the valuation services we provide and the estimated fees for such services.
Business Purchase/Sale Consultation: This consultation involves the determination of the true net profit or owner’s discretionary cash flow, a comparison to BIZCOMPS market data, and a Summary Report with an estimated range of value.
TOTAL FEES $3,500-$5,000
Basic Business Appraisal: This valuation project results in a Calculation Report that includes the examination of one to three years profit/loss statements, tax returns and the determination of adjusted net earnings. It does not include the verification of financial information supplied by the owner or verification of the values of fixtures, furniture and equipment. This report is not suitable for the Internal Revenue Service or Court Purposes.
TOTAL FEES $6,000-$8,000
Management Information Appraisal: This valuation project results in a Calculation Report that includes a review of three to five years financial statements, recasting of profit/loss statements to find discretionary profit, an analysis of the balance sheet and depreciation schedule including adjustment of machinery and equipment to Fair Market Value, the use of as many approaches to valuation as practical, reconciliation of the approaches used, and application of minority and/or marketability discounts.
TOTAL FEES $8,500-$11,000
Comprehensive Business Appraisal: This valuation project results in a Certified Valuation Report is for an operating company that includes a statement of purpose and function, an analysis of national, local and industry economies, a review of five years financial statements with comparison to tax returns, recasting of profit and loss statements, an analysis of the balance sheet and the depreciation schedule including adjustment of machinery, equipment and other company assets to Fair Market Value, the use of as many approaches to the valuation as practical including Discount Future Earnings and Market Data or Guide Lince Company approaches, reconciliation of approaches used, and application of minority or marketability discounts. This report is ideal for Internal Revenue Service or Court purposes.
TOTAL FEES $15,000-$20,000
Holding Company Appraisal: This valuation project results in a Certified Valuation Report is for a non-operating, holding company (such as a limited partnership or a limited liability company used primarily as an asset holding company for asset protection or tax planning purposes) that includes a statement of purpose and function, an analysis of national and local economies, a review of five years financial statements with comparison to tax returns, recasting of profit and loss statements, an analysis of the balance sheet and the depreciation schedule including adjustment of assets to Fair Market Value, the use of as many approaches to the valuation as practical including Discount Future Earnings and Projected Liquidation approaches, reconciliation of approaches used, and application of minority or marketability discounts. This report is ideal for Internal Revenue Service or Court purposes.
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TOTAL FEES $12,500-$17,500