When Do You Need a Business Valuation?

Placing the right value on your business is critically important. It’s not as easy as looking at financial numbers on an excel spreadsheet and then doing a quick calculation to determine what the business is worth. Each business is different even though the numbers look all the same.

The true value of a business comes down to its ability to earn profit and how much effort it takes from the new owner to generate that profit. 

An accurate business valuation will include:

  • The true value of your business when compared to other businesses just like yours that have sold in the recent past.
  • The true value of the actual profit your business receives on the revenue generated.
  • How much the future earnings are worth today when you consider growth opportunities, your market segment growth predictions, and the business’s ability to take full advantage of those.
  • The value of the culture and the team you have created. Culture beats strategy every time. A great culture and a high-performing team add to the bottom-line value of your business.

An accurate valuation report takes all of these critical factors plus hundreds more into consideration to determine what your business is worth to a potential buyer. 

Which Business Valuation Report is Right for You?

There are generally two types of business valuation reports. Informational Valuations and Certified Valuations. Below is a summary of what these two reports offer, how they differ, and when you should choose each one.

Broker’s Opinion of Value

Informational / Broker’s Opinion of Value Reports is typically used when determining how much a business is worth to be listed for sale. Typically 30-40 pages, these reports provide valuable insight to establish a market price, support exit planning, or inform internal business planning decisions. This report is best suited for individuals who don’t need a certified valuation and are comfortable with more limited procedures and reporting. Financial analysts of our valuation team prepare all reports.

  • 30-40 pages
  • Includes valuation ranges based on asset, income, and market approaches; benchmarking to industry peers, market multiples based on comparables data
  • Uses: price opinions, educate sellers on the range of a value a buyer would be willing to pay, future exit planning

Price: $3,000

Certified Business Valuations

Certified Reports are prepared by a certified business appraiser. Typically 65+ pages, these reports include an in-depth written analysis of the nature & history of the company, industry & economy, financial analysis, and conclusion of value. This type of report is best when you expect a lot of scrutiny over the value or when there is a high level of interest in detailed support and explanation of the valuation.

  • Typically 65+ page 
  • 1-hour consultation
  • Includes executive summary and more in-depth written analysis of nature & history of company, industry & economy, financial analysis, and conclusion of value
  • Uses: substantiating information presented to third parties (e.g., acquisitions, divestitures, IRS submissions, partner disputes, and bank loan reports)

Price: $6,500*

*Typical cost. Request a quote. Turnaround: 4 Weeks or less.

Will My Information Be Secure?

Yes. As a new client, you will register to gain access to our secure portal. The portal will be used to collect information and provide your completed valuation report once it is ready. You will not send us sensitive documents and information over unsecured email.

For returning clients, please log in anytime to add or edit your information. You will be notified via email when your report is ready for download.