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
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
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
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)
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
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
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
Timeline depends on business complexity and document availability
Fixed-fee pricing based on scope and complexity assessment
Learn More About Valuation
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