Valuation Services

The valuation of a business depends on its purpose. The amount of precision and work that can go into a valuation must be balanced against the size of the business and the purposes of the valuation. Generally speaking, the larger the deal the more time and money can be spent on the valuation of the business.

We provide simple main street valuations at no cost to our clients and potential clients. This valuation is based on a simple cash flow analysis and industry specific ratios. You can request yours here.

For situations where more rigor is required, we partner with certified valuation analysts to provide a variety of valuations depending on the purpose and size of the business.

Snapshot Valuation

This report is intended for small companies with sales less than $250,000. It is approximately 11 pages and provides only a brief synopsis of how the valuation conclusion was determined. The basis of this valuation is a market comparison with like companies within an industry.

Value Analysis

The Value Analysis is a restricted use business valuation designed specifically for the “main street” business with sale of $1,000,000 or less. The report is intended for “asset sale, financial buyer” and is approximately 40 pages providing only a summary of how the valuation conclusion was determined. The basis of this valuation is discretionary cash flow, since most Main Street businesses are bought and sold on a multiple of cash flow. The value considers primarily historical and current financial performance and very little time is spent with the Balance Sheet.

Limited Formal Valuation

This report is a restricted use business valuation intended for the standard small business with sales between $1,000,000 and $5,000,000. The report is intended for “asset sale, financial buyers” and is approximately 70 pages providing a detailed review of all aspects that were considered in determining the final valuation conclusion. The bulk of the report is financial analysis and the valuation conclusion is supported on much more detail. In addition to reviewing the company’s historical and projected earnings, the report also contains a detailed review of the Balance Sheet.

Other Valuations

Additional, specific requirements valuations are available, such as merger & acquisition and IRS Revenue Ruling 59-60.