Valuations Services

Business Acquisitions Brokerage, Inc. can provide various valuations and consulting for all types of businesses.

1. Initial consultation

This meeting or phone conference is discrete, confidential, and without charge (FREE). The goal of this consultation is to determine the following:
  1. The purpose and the scope of the valuation.
    • For example; is a business owner simply looking for a “ballpark” estimate of the current value, or will this valuation be subject to Court scrutiny in a divorce or IRS dissection for an audit? Naturally the process and investment for these are different.
  2. An overview of the process and steps along with a timeline and estimate for the valuation.

If we both agree to proceed, an engagement letter of the mutual understanding of the valuation to be performed along with the data required from the client to complete the work, will be executed

2. Providing Data

Business Acquisitions will provide the client with a list of items necessary for their specific valuation. The data will all be handled discretely and returned at the completion of the analysis. This list will include basic items such as tax returns, internal financials, and a questionnaire on almost all businesses, and specific questions for each different type of business, specific to that industry.

3. Analysis

Because each business is unique as their accounting systems seem to be, we will be in contact with the client throughout the process assuring the most accurate valuation possible. We will visit the business, during off times if necessary for discretionary reasons, as part of the process.

4. Valuation Report

Business Acquisitions will deliver the Final Valuation Report to the level of the agreed upon scope and depth of the valuation, and will thoroughly (as in page by page) explain the report so that the client fully understands not only the final value, but how the value was derived.

Prioritizing Your Needs

Eventually, almost all business owners obtain a valuation for their business.

Below is a sample list of other reasons Business Owners request valuations.

  • Estate Planning
  • ESOPS (Employee Stock Ownership Plans)
  • Divorce
  • “C” Corp. to “S” Corp. conversion
  • Partnership Buyouts
  • Shareholder Disputes
  • Insurance Claims
  • The sale of the Business
  • Litigation
  • Allocation of the Price (for a sale or internal accounting)
  • Mergers

Valuation Products Available

Short Form Valuation Report

A shorter version of the valuation report (below) used specifically to provide a business owner with an approximate value of their business (with or without land). Depending upon the business and land, this will be 20 to 40 pages.

Business Valuation Report

A formal report that is used primarily for non-litigation situations.
This report is typically all that is needed for determining the selling price of a business or assisting in establishing a buy-sell agreement between partners/shareholders. This report, along with “comparables” and market information, will be between 25 and 60 pages in length, and sometimes longer.

Business Appraisal Report

This formal comprehensive report is suitable for litigation support and review by third parties such as the IRS. The report explains in a step-by-step manner what was done and how the value was derived. Unfortunately, this is used most often for Partnership breakups (business) and Divorce proceedings.

Take the Next Step

We’ve listed many of the reasons for a valuation, but the #1 reason (with a far distant #2) that we perform valuations is simply because the owner wants to know what their asset is worth, period.

These can be a simple valuation costing less than $1,000 or more complex valuations with fees from $2,500 to $5,000.

To discuss your specific business valuation requirement, fill out our online form or call us at 678-493-8000 to schedule a discrete, free, initial consultation