Business Valuation Consulting

HOW CAN WE AS A BUSINESS VALUATION CONSULTANT HELP YOU?

It is a question every business owner asks themselves at one time or another. What’s my business worth? Sometimes, it’s just out of curiosity – sort of I want to know how well I am doing, but most of the times the entrepreneurs are required a formal valuation or they consider selling their business. Consequently, that is when an experienced business valuation consultant comes into play.

If you want to sell all or part of your business, you need to know what your business is worth. Therefore, you and the buyer or investor need to determine what could be an appropriate business valuation because negotiating will be based on it. We as a business valuation consultant can give an independent and objective advice to the owners and investors to determine the fair market value of their business or its assets. Some of the valuation services we provide:

business valuation
intangible asset valuation
investment valuation

PRODUCTS AND STANDARDS

Appraisal Reports and Restricted Appraisal Reports compliant with USPAP (Uniform Standards of Professional Appraisal Practice). The main difference between these two reports lies in the content and level of information provided. The appropriate reporting choice and the level of information necessary in the report are determined by the intended use and intended users.

Indicative Valuations or Calculations where we provide only an indication of value based upon the performance of limited procedures agreed upon by the appraiser and the client that may not meet all the criteria of a specific set of valuation standards. Indicative Valuations can occur for example when the valuator does not make reasonable enquiries as to the validity of information or the valuation is carried out by specific valuation methods only agreed upon by the client and valuator. Indicative Valuation appraisal might be useful for clients in matters related to other than tax, litigation or accounting.

We also offer valuation modelling services in Excel when no written report is issued.

OUR CLIENTS

Our clients include: Business Owners, Accountants, Valuation Firms, Law Firms, Lending Institutions and M&A Firms.

We provide high quality, competitively priced SME business valuation solutions to our clients.

ESTIMATING VALUE

There are three conventional valuation methods/approaches used to derive market value:

income approach;
cost approach; and
market approach

The income approach is predicated upon the value of the future cash flows that the business will generate. Next is the cost approach, which determines the fair value of an asset as an estimate of the current cost to purchase or replace the asset. Finally, under the market approach, the fair value of an asset reflects the price at which comparable assets are purchased under similar circumstances. Valuation is usually done by applying one or all of the above methods. Selecting the appropriate method(s) and applying them effectively require professional judgement and experience. In fact, The ValueTrail business valuation consulting team provides you these professional skills and experience.

Our business valuation process

Here is an example of how a business valuation engagement might proceed. Please note that each engagement is different and a given assignment is governed by an engagement letter that might outline a process different from the presented example.

Step 1. - Initial conversation by email or phone to understand your needs

In this first stage, we try to identify your valuation needs and the appropriate scope of work. So, we discuss among other things the followings: use of the valuation, size of the business to be valued (revenues, earnings, etc.), industry of the business, date of valuation, interest to be valued (percentage of ownership), what access to business information you have, etc. We hold your information in the strictest confidence and use it only to to determine your needs and see how we can help you.

Step 2. - Signing and returning the engagement letter

Based on our assessment of your needs and the cost of our work, we send you an engagement letter with a price quote. When you sign the engagement letter and return it to us with the 50% retainer fee we start our work.

Step 3. - Collecting information

We will gather the requested information (information request list will be sent out to you with the engagement letter) and start our research.

Step 4. - Valuation analysis

We review and analyze economic, industry and business financial data. Subsequently, we choose the appropriate valuation method and carry out the valuation.

Step 5. - Delivery of valuation report

We will email you the valuation report in PDF or Word Format. We will also schedule a phone call to discuss the results with you.

If you have any questions or inquiries, please contact us.