Valuation Engagement Pricing
Based on a single entity, single location, and single revenue stream business.
MOST POPULAR
IRS, BANKS, & LEGAL
30 Minute Consult
FREE
Introduction
This consultation period is used to help me understand your needs and to determine what type of Valuation Engagement you require. It covers some basic valuation theroy and sets some parameters with regard to your time-frame. This is all about the big picture and defining the purpose of your valuation.
Analysis
$1,595
Conclusion of Value
The analysis includes both the Income Approach and Market Approach. This will help you determine if you need to move forward with a Letter of Opinion or Written Report. This comprehensive analysis includes re-casting of financials, calculating excess cash, determining capitalization rates, creating correlation studies on the market data and generating graphs based on revenue and earning metrics. It will provide a Conclusive of Value.
Deliverables:
A PDF file with:
- My informal notes
- Re-casted Financials
- Excess Cash Calculation
- Industry IRS Ratio Analysis
- Capitalization of Earnings
- Raw Market Data
- Regression Analysis
- Metric based Graphs
- Coefficient of Variance
- Rules of Thumb
- Conclusion of Value Table
Letter of Opinion
(Includes: Analysis)
$1,995
Opinion Letter
This engagement is if you need a formal certified Letter of Opinion to help negotiate the sale of the business, settle a shareholder dispute, getting owners on the same page, internal business discussions, marital dissolution handled by a mediator, or for immigration matters... or for assessing if further reporting is necessary
Deliverables:
Everything under "Analysis" plus:
Additional PDF file with
- Certified Letter of Opinoin
- Analyst's Representations
- Statement of Assumptions
- Limiting Conditions
- Analyst's qualifications
Future updates: $1,595
Summary Report
(Includes: Analysis & Letter of Opinion)
$3,995
Written Report
This engagement includes a comprehensive explanation of all of the analysis. This report is typically used by the IRS for estate tax, banks for SBA loans, and for legal counsel in Court proceddings as it is a common report for litigation. This report DOES NOT include a national or local economic review nor an industry review; which is only required for the IRS (see "Add-ons" below).
Deliverables:
Everything under "Analysis" and "Certified Opinion Letter" in a written report
PDF Written report explaining:
- Standard of Value
- Premise of Value
- Control Characteristics
- Marketability Characteristics
- Assumptions
- Scope Limitation
- Company History
- Nature of the Business
- Ownership
- Competition
- Recasting (Normalization)
- Ratio Analysis
- Valuation Approaches
- Control Discounts
- Marketability Discounts
- Glossary of Terms
Future updates: $2,195
Required for Analysis, Letter of Opinion, or Summary Report:
1. Completed Business Valuation Questionnaire*
2. Previous 3 to 5-years Profit & Loss Statements and Balance Sheets
3. If Valuation Date is not end of fiscal year, trailing 12-months' (TTM) financials for previous 12 months leading up to the valuation date (e.g., if the Valuation Date is May 13, 2025, then for the period May 14, 2024 thru May 13, 2025)
4. Signed Letter of Engagement
* Business Valuation Questionnaire:
This questionnaire is to be completed by the owner, seller, broker or attorney. Typically, this questionnaire takes approximately 60 to 90 minutes to complete. If I am required to interview management and/or owners to compile this information, the Client will be billed at my normal hourly rate of $275 per hour.
Add-ons: (upon request only)
National & Local Economy Review $395
Disc. Cash Flow-DCF Forecast Modeling $795
Site Visit (transportation costs not incl.) $795**
Guideline Public Company Method $1,495
Hourly Rate (additional work) $275
Hourly Rate (Courtroom & Deposition) $375
Disclaimer:
The valuation estimate or Conclusion of Value will be based upon future earnings projections that may or may not materialize. I do not provide assurance on the achievability of the results forecasted because events and circumstances frequently do not occur as expected; differences between actual and expected results may be material; and achievement of the forecasted results is dependent on actions, plans, and assumptions of management. Fees are not contingent on the outcome of the engagement. Any additional time requested by the Client beyond the report requirements listed above, will be billed at my normal hourly rate of $275 per hour, and deposition and Court appearances will be billed at $375.00 per hour in four-hour increments for each half-day session. I cannot serve as a retained, disclosed, or designated trial expert witness without a fully executed Letter of Engagement.
** Site Visit:
If the Client deems a site visit is necessary, site visit fee does not include any expenses relating to travel (see "Travel Expenses" below).
Travel Expenses:
In the event, I am requested to travel for a site visit or for any deposition or Court appearance, travel expenses will be charged. For intrastate engagement within the state of California, travel time will be billed at $150.00 per hour. For interstate engagements within the United States or Canada, travel time will be billed at $1,200 per day for each travel day or any portion thereof and my air fare and hotel cost shall be paid by the Client.
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