With each certified small business valuation appraisal, it will be necessary for our business valuator to determine the:

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1. Type of Engagement will be conducted (Valuation or Calculation)

2. Standard of Value will be applied (Fair Market Value, Fair Value, or Investment/Strategic Value)

3. Premise of Value (Net Asset Value, Going-Concern Value, Liquidation Value, or Replacement Value). 

4. Purpose of the Valuation

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These factors will be determined through a mutual agreement with the Client.  The business valuator will then gather historical financial statements, national and local economic data, industry data, company specific data including risk & management assessment as well as forecasting data pertinent to the appraisal.  A 10-page company valuation questionnaire also reveals any non-operating assets/liabilities and non-operating income/expenses.  Certified Valuation Analysts and Certified Business Appraisers (business valuators) have numerous tools to assess an accurate benefit stream and risk rate.  These tools include the latest valuation software such as BVM-Pro along with many data basis including RMA and IRS industry ratios, cost of capital analyzers, premium and discount data, compensation data, and transactional data for both private and public stock sales.  For the appraisal, a business valuator will use multiple approaches (Asset Approach, Income Approach, and Market Approach) to determine an opinion of value.  This value may be a specific value or may be a range.  This final Conclusion of Value or Calculation of Value may be expressed to the client, by the appraiser in either oral or written form.  If in writing, it may be submitted in either a Summary Report or a Detailed Report.  This selection will be determined by the Client's needs and budget constraints.  Clients can save a substantial amount towards the appraisal by helping gather the initial data and completing the 10-page company valuation questionnaire.

Certified Business Valuations are an opinion of the Analysts/Appraiser/Valuator and in no way directly express that a shareholder can receive that value if the shares are put up for sale.  The valuation appraisal should only be used by the Client for the sole purpose stated which is driven by the type of Engagement, Standard of Value and Premise of Value.  Many factors go into a formal business valuation appraisal and a change of circumstances can greatly affect the final opinion.

Note: The date of valuation is critical as information after that date is not used to alter the original value (as of that date) unless the Client specifically notes that the data or information revealed later was available before the date of valuation.

Be sure to use a Certified Valuation Analyst or a Certified Business Appraiser for your Business Valuation.  A thorough investigation of the data and a relevant opinion of value can help dramatically in shareholder disputes, divorce settlement mitigation, shareholder transactions, gift tax and estate tax claims, and litigation.  Always seek out a professional to protect your investment as your business is usually one of the larger assets in your portfolio.  All of our analysts are CVAs certified by the National Association of Certified Valuators and Analysts (NACVA) and many of our CVAs have multiple appraiser certifications.

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*This is for Clients looking for a broad range in estimated value for the entire business (single entity & single location only).  Clients can take this information to determine if they need to move forward with a written report.  This is especially helpful for shareholder buyouts, shareholder disputes and initial marital dissolution assessment. The Analyst will review the company's previous 5-years' financials and the Client's business valuation questionnaire and complete a quick Income & Market analysis along with applying any industry rules of thumb.  This is a quick an easy way to get everyone on the same page.