For larger transactions we recommend an Independent Third Party Business Valuation. While we can prepare an internal valuation to determine the market value of the company, on larger transactions it is important to have an independent valuation from a Certified Valuation Analyst.
The independent valuation is unbiased and gives both buyers and sellers confidence in the methodology employed in the calculations and the resulting value. This gives the asking price credibility and defends the asking price during negotiations.
We use a nationally recognized professional valuation firm with Certified Valuation Analysts for our M&A and middle market business valuations.
For more information please Contact Us.
The Formal Valuation or Complete Appraisal is used for businesses with sales between $5 million and $50 million to determine the asking price in a prospective sale and also for SBA financing where a formal Third Party Valuation is required. It is also used for estate planning and in some cases litigation support.
There are three types of Formal Valuations:
The Formal Valuation Limited Scope is the least expensive and used to determine an independent market value for prospective sale.
Complete Appraisal – Summary Report is more comprehensive than the Limited Scope Valuation and used for determining the market value of larger businesses, SBA financing, and simple estate matters.
The Complete Appraisal Self Contained Report is the most comprehensive valuation and used for large transactions, litigation support, and ESOP (Employee Stock Ownership Plan) valuations.
M&A valuations are used for businesses with sales over $20 million. For these valuations the more comprehensive Complete Appraisal Summary or Self Contained Report may be used depending upon the transaction and complexity.