Business Valuation


Our Business Valuation ProcessBusinesses evolve, and now it’s more important than ever to know your true value every step of the way.

Besides being valuable information for your day-to-day operations, a thorough review and appraisal of your company will also help if you’re trying to obtain a loan, computing for executive compensation, filing for bankruptcy or divorce, or any other current and short-term business issues that need to be addressed promptly.

Our ValuEdge package provides the information you need to make informed decisions about your company’s future.

ValuEdge incorporates the most common business valuation methods – asset, income, and comparables approach – that determine the true financial worth of your company offered from various perspectives of the business. It is particularly beneficial in minimizing tax implications, and includes a review of historical data to come up with the company’s financial trends. ValuEdge also features a live consultation with your assigned valuation expert to discuss your objectives for the business.

Think of ValuEdge as the business valuation service that clarifies your company’s needs and goals at present and for the near future. Sign up for the ValuEdge today to receive your true business value.

The Process

The valuation process typically takes 30-60 days and consists of the following steps:

  1. To start, we need three years of financial statements or tax returns
  2. A financial analyst will then contact the client and review the additional information we need including:
    a) Operational (products, services, manufacturing process, geographic reach, competition, barriers to entry, facility, employee base, etc.)
    b) Financial (recasting for one time expenses, management perks, non-operational expenses, fiar market salaries, fair market value of fixed assets, etc)
  3. The analyst will collect the data via email and interviews over the phone
  4. The analyst will review recast financial statements with client and develop a 5 year pro forma including footnotes for historical and projected financials.
  5. Client approves historical recasting and projected financial statements
  6. After this information has been collected, the valuation document will be finalized over the next two to three weeks.
  7. A valuation committee consisting of experienced M&A professionals will review the information and determine final value
  8. Valuation is sent to client
  9. Conference call with M&A professional to:
    a) Explain valuation document and conclusion
    b) Review the client’s objective for the valuation
    c) Discuss possible options to increase the value of the company, market the business, timing for meeting financial objectives, etc.

The Deliverables

The valuation document consists of:

  1. Business summary
  2. Recasted historical income statement
  3. 5 year pro forma income statement summary
  4. Supporting detail for historical and projected income statement
  5. Recasted historical balance sheets
  6. 5 year projected cash flow statement
  7. Analysis of valuation on a cost basis
  8. Analysis of valuation on future income
  9. Value conclusion
  10. Net value that an owner would receive from selling the company

 

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