The Business Valuation Process : As soon as you place your order with our online shop, we will email you a login and password, which you will use to access to our user-friendly questionnaire.This questionnaire approximately 30 minutes to complete. If you need to interrupt your session, you can save the information that you have already provided. This Questionnaire will cover all relevant topics including the following: - Your corporate Identity
- The purpose of the valuation from one of the following choices:
- To establish a price for a transaction,
- Due diligence,
- Business planning,
- IRS dispute,
- Divorce,
- Attract capital,
- Aid in estate and gift planning, or
- Meet governmental requirements (SBA).
- Nature of the Business
- Real estate and other Balance Sheet adjustments
- Compensation to the owners and non-recurrent incomes.
Additionally, you will be asked to upload your financial statements and any relevant documents, such as balance sheets and profit & loss statements, in Excel, QuickBooks, or MYOB formats.
Step two : Verification of business valuation inputs and assumptions We will contact you if we need to confirm or complete the valuation inputs and assumptions to make sure that all special circumstances are incorporated into the final valuation results. Step three : Our expert Valuers will begin the business valuation Our expert valuers will adjust your financial statements to capture the true economic value of your company by choosing a combination of business valuation methods that are best suited to your business activity. We use up to 22 business valuation methods with an emphasis on discounted cash flow (DCF) methods. - Income Approaches (4 methods)
- Income-based methods determine the probable future income of the business and capitalize this income stream to determine the business' value. The adjusted or normalized income stream, which is the probable future income stream, can be determined by adjusting each revenue and expense item on the income statement (to its probable future value over the near term.) Capitalizing the income stream involves determining an appropriate discount rate to apply to the income stream to arrive at its present value. The present value of the income stream in a profitable business is what gives the business its highest and best value. In a profitable, closely held business, income-based methods are usually the best to use.
- Market Approaches (12 methods)
- These methods use data from comparable business sales to determine the value of a business.
- Cost Approaches (3 methods)
- These methods include adjusting each asset and liability on the balance sheet to fair market value, then the values are summed. This approach ignores the earnings of a business and should receive minimal attention when valuing on-going closely held businesses which generate earnings by selling products or rendering services. Asset-based methods are appropriate for businesses such as bank holding companies whose principal function is to manage income-producing assets.
- Custom Methods
- These methods have been developed over time by Business Matter Valuation and are exclusive to this company.
During the business valuation process for your business, we will also access extensive and comprehensive industry-specific databases - including Bizcomp, RMA, SBBI and IRS corporate ratio - to generate a cash-flow-based business valuation for any company in one of the 981 non-agricultural industry sectors in the US. These databases allow us to compare your business to similar ones with similar sales transactions. Step four : Writing the Business Valuation Report After this comprehensive analysis of your business is complete, our expert business valuers will produce your tailored business valuation Report, that details our professional opinion related to the market value of your company. Your report will include a letter of opinion, to state the value of your business and our justification for that opinion. We will also send you an electronic copy of your comprehensive Report, along with a cover letter and a letter of opinion signed by our Chairman. We offer the best value for the money in the business valuation industry, which is the reason for our success. Our professional and independent business valuation Report will definitely save you money and time.
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