Business Valuations
Buying or Selling a Business? You Need a Valuation.
With a business valuation, you can move forward with important transactions and enter into negotiations with ensured reliability, reduced financial risk, and unparalleled confidence.
What is a...
Certified Business
Valuation?
the Value of Your
Business?
Through our strategic alliance with our affiliate partner with over 20 years' experience, we'll help position your business for the most favourable outcome in the following areas:
- Mergers and Acquisitions
- Sales and Divestitures
- Buy/Sell Agreements
- Share Redemptions
- Business Planning
- Retirement/Succession Planning
- Employee Benefit Plans
Which Valuation Report is
Right for You?
Business valuation reports can be prepared for many different purposes. That's why we offer two types
of business valuation reports: Informational Valuations and Certified Valuations. Below is a summary of
what these two reports entail, how they differ, and when you might benefit most from each.
Listing Consultation
Broker Opinion of Value (BoV)
Certified Summary Report
Certified Detailed Report
This service is complementary and designed to provide you with a value range for your business. We will provide a suggested listing price as well as discuss current industry trends and expected offer offer ranges.
Contact Us Today To Learn More About Our Business Valuation Services
Informational Reports
Informational Reports are less time-intensive to produce and more affordable.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. All reports are prepared by financial analysts of our valuation team.
Essentials Report: 20+ pages; includes valuation summary based on market and asset approaches. Market approach includes sales and SDE multiples. Available for businesses with less than $2M in revenue.
Standard Report: 35+ pages; includes everything in the Essentials Report plus EBITDA multiples (if applicable), capitalization of cash flow method, multi-stage growth method, financials and industry benchmarking ratios. Partner (you) or client collects required data and completes financials spreadsheet in the BizWorth portal.
- 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 range of a value a buyer would be willing to pay, future exit planning
Turnaround: 5 business days
Certified Reports
Certified Reports are prepared by a certified business appraiser. Typically 65+ pages, these reports include in-depth written analysis of the nature & history of 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+ pages
- 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)
Turnaround: 4 Weeks or less.
When Do You Need A Business Valuation?
Whether you are a business owner contemplating the sale of your business, raising bank capital or investor equity, pursuing a legal claim, preparing your succession or planning any array of accounting and IRS-related reporting events - you will want to obtain a valuation report that is credible and protects you against others from discrediting the valuation.
If you are facing any of these life events or at risk of possible IRS-related penalties or losing more than $5,900 on your transaction, then we highly recommend the insight provided by a business valuation report.
Your business valuation report will:
- Inform the list price and provide the fair market value of your business if you're selling
- Deliver the credible and reliable value of your business if buying out a shareholder
- Provide the value of your shares, as reported to the IRS, if gifting to a family or friend
- Add valuable credibility during negotiations or legal proceedings
In some instances, you may choose to provide the valuation report to your counterparty to further strengthen the reliability of the valuation and remove barriers. In other cases, you may be required to disclose the valuation report as required by the IRS when gifting shares or purchasing a business.