Our services range from the free “brokers opinion” to a formal valuation report for the owners of closely held businesses. The different types of business valuations offered in collaboration with a qualified third party are as follows:
• Value Analysis: The Value Analysis is a limited scope business valuation designed specifically for the “Main Street” business with sales of $1,000,000 or less. The basis of this valuation is discretionary cash flow, since most main street businesses are bought and sold on a multiple of discretionary cash flow. Investment required is $1,500.
• Formal Valuation: The Formal Valuation is also a limited scope business valuation intended for businesses with sales between $1,000,000 and $5,000,000. The report heavily emphasizes ratios, trends and common size analysis. A discounted future cash flow model is also included. Investment required is $5,000.
• Merger & Acquisition Valuation: The Merger & Acquisition Valuation is a comprehensive business valuation for transactional purposes and is developed in accordance with the Uniform Standards of Professional Appraisal Practice. This valuation is intended for the larger small business with annual revenues in excess of $5,000,000, businesses that are expected to sell for more than $1,000,000, strategic acquisitions of niche businesses, and generally any business with significant growth expected in the future. The basis of the valuation is future earnings with the historical performance playing only a limited role in the valuation conclusion. The selection of guideline companies comes from both the private and public markets, which tends to make the valuation conclusion more aggressive. This report is a completely customized report and the number of pages can range from 30 to 200 depending on the information that is used to support the conclusion.