We prepare business valuations most commonly for marital or shareholder breakups, and for purchase and sale of a business.
There are three types of reports available, the level of report required will depend on what you need it for.
A Calculation valuation report, sometimes prepared as a “draft” report, provides the lowest level of assurance and relies heavily on information provided by the client. This report is useful as a starting point where both parties are amenable to settling and there is no question as to the accuracy of the financial information being provided. These reports are also often used for tax transactions, or management buyouts where all parties understand the business well. A Calculation report can be subsequently upgraded to another type of report.
In preparing an Estimate valuation report the valuator undertakes a limited review and analysis of the information provided. Certain relevant information is corroborated by outside sources, and some detail with regards to the analysis is provided in the report.
A Comprehensive valuation report, formerly referred to as an “opinion” provides the highest level of assurance. A comprehensive review and analysis of the business and industry is performed, and all other relevant factors are corroborated. The report is detailed and is appropriate for court proceedings.