Professional Business Valuation Process

A transparent, step-by-step guide to how professional business valuations are conducted. Understand what to expect from engagement to final report delivery.

Why Process Matters

A professional business valuation follows established standards and methodologies to ensure accuracy, credibility, and defensibility. Our structured process delivers consistent, reliable results you can depend on for important business decisions.

Professional Standards

Complies with NACVA, ASA, and AICPA professional standards

Defensible Results

Thorough documentation and analysis withstands scrutiny

Efficient Timeline

Streamlined process delivers results in 2-3 weeks

Step-by-Step Process

1
Initial Consultation & Engagement

Timeline: 1-2 Days

We begin with a detailed consultation to understand your valuation needs, timeline, and specific requirements.

Key Activities:

  • Define the purpose and scope of valuation
  • Determine standard of value (fair market value, etc.)
  • Establish valuation date and timeline
  • Review business overview and industry
  • Execute engagement letter
2
Information Gathering & Document Review

Timeline: 3-5 Days

Comprehensive collection and review of financial records, legal documents, and operational information.

Key Activities:

  • Financial statements (3-5 years)
  • Tax returns and supporting schedules
  • Legal documents (articles, bylaws, agreements)
  • Management interviews and discussions
  • Industry and competitive analysis
3
Financial Analysis & Normalization

Timeline: 2-3 Days

Detailed analysis of historical financial performance with adjustments for non-recurring items.

Key Activities:

  • Ratio and trend analysis
  • Owner compensation adjustments
  • One-time expense normalization
  • Working capital analysis
  • Cash flow projections (if applicable)
4
Market Research & Comparable Analysis

Timeline: 2-3 Days

Research of market conditions, industry trends, and comparable transaction data.

Key Activities:

  • Industry research and benchmarking
  • Comparable company analysis
  • Transaction multiple research
  • Economic factor assessment
  • Risk factor evaluation
5
Valuation Analysis & Calculations

Timeline: 3-4 Days

Application of appropriate valuation methodologies to determine business value.

Key Activities:

  • Income approach calculations
  • Market approach analysis
  • Asset approach (if applicable)
  • Discount/premium adjustments
  • Reconciliation of value indications
6
Report Preparation & Quality Review

Timeline: 2-3 Days

Comprehensive report preparation with detailed explanations and quality assurance review.

Key Activities:

  • Draft report preparation
  • Supporting exhibit creation
  • Internal quality review process
  • Compliance with professional standards
  • Final report production

What You Receive

Comprehensive Valuation Report

  • Executive Summary: Concise overview of valuation conclusion and key findings
  • Business Description: Detailed analysis of operations, markets, and competitive position
  • Financial Analysis: Historical performance review with normalization adjustments
  • Valuation Methods: Detailed application of income, market, and asset approaches
  • Value Conclusion: Final value determination with supporting rationale

Supporting Materials

  • Detailed Workpapers: All calculations and analysis supporting the valuation
  • Market Data: Industry research and comparable transaction information
  • Assumptions List: Clear documentation of all valuation assumptions
  • Certification: Professional certification of independence and qualifications
  • Follow-up Support: Discussion of results and answers to your questions

Timeline & Investment

Typical Timeline
Standard Valuation:2-3 weeks
Complex Valuation:3-4 weeks
Rush Service:1-2 weeks

Timeline depends on business complexity and document availability

Investment Range
Small Business:$5,000 - $12,000
Mid-Market:$12,000 - $25,000
Complex/Large:$25,000+

Fixed-fee pricing based on scope and complexity assessment

Learn More About Valuation

Valuation Methods

Learn about different approaches to business valuation

Explore Methods

Valuation Glossary

Learn about valuation terminology and methods

View Glossary

Choosing a Valuator

How to select the right valuation professional

Learn More

Ready to Begin Your Discovery?

Get started with a free consultation to discuss your valuation needs and learn how our proven process delivers reliable results.