Valuation Reports

BizValue offers several options of reports depending on the client’s needs and requirements. An ‘Opinion of Value’ is usually written up in a “Full Report” or “Summary Report”.

Full Report (40 to 100 pages)

A “Full Report” conveys an ‘Opinion of Value’ in a comprehensive manner including an explanation of the methodologies used; complete datasets of the business and the relevant economic environment that the company operates in, and a comprehensive overview of the business. This option is advised when the conclusion may (or must) be defended in court, and when the intended users of the report have limited knowledge of the business.

Summary Report (20 to 30 pages)

A “Summary Report” is suitable for most purposes including taxes, shareholder disputes, and legal purposes. A summary report assumes some knowledge of business principles and so tends to contain just that information that a knowledgeable user (such as a CPA or business attorney) would require to understand how the conclusion was reached.

Calculation Report (10 to 20 pages)

A “calculation of value” is usually conveyed in a ‘calculation’ report’ that is limited to a scope of analysis and to methodologies agreeable to the client. A ‘calculation of value’ contains the disclaimer that it is not an “opinion of value” and so the conclusion may be different. A “calculation of value” is generally advised in order to determine a value or a range of values as an aid in negotiating the purchase or sale of a business. Since the users of the report are usually very familiar with the business, a lengthy narrative is not required.    

Getting Started and the Process:

1. Prospective client contacts us to discuss basic information about the business and which type of report meets your needs.
2. We will provide a quote and estimate of report completion date.
3. Upon client’s approval we send a services agreement, and preliminary information request. This initial request will include:
   1. Three years of financials & Tax returns plus YTD.
   2. Contracts pertinent to the valuation such as 'franchise agreements'.
   3. A detailed questionnaire about the business.                                             
4. Client returns signed services agreement, requested information, and payment to BizValue Inc.
5. BizValue will follow up with additional questions for client as analysis proceeds.
6. BizValue will provide a draft report (PDF) for review by the client.
7. BizValue prepares finished report, signs and delivers PDF to client.