|
Types of Reports
Estimate of Value
An estimate of value is our most basic level of
valuation service offered. We estimate your Company’s
fair market value using commonly accepted valuation
approaches deemed by us to be most appropriate. An
estimate of value report is based on the gathering of
limited relevant information and application of limited
valuation procedures. Our estimate of value is
communicated in the form of a small bound report that
consists of our valuation schedules with a two page
cover letter. An estimate of value is not an opinion of
value. Furthermore, an estimate of value is not in
conformity with the requirements for an appraisal as
required by the Uniform Standards of Professional
Appraisal Practice (USPAP). However, an estimate of
value does provide the business owner with an estimate
of the approximate value of their business without
incurring the additional costs associated with an
opinion of value.
Letter Report Opinion of Value
A letter report opinion of value is our middle level of
valuation service offered. Our opinion of your Company’s
fair market value is determined through consideration
and application of one or more methodologies from all
three commonly accepted valuation approaches. Our
opinion of value is based on the gathering of all
relevant information and the application of extensive
valuation procedures including, but not limited to, a
complete review and analysis of the Company’s history
and operations, analysis of historical and projected
financial data, and analysis of the economy and the
industry in which the Company operates. Our letter
report opinion of value is communicated in the form of a
bound report that consists of our valuation schedules
and an abbreviated report that is approximately 10 pages
in length. The abbreviated report summarizes and
describes the valuation methodologies employed and other
relevant issues regarding the valuation. Our file for
the letter report opinion of value contains all of the
necessary information to prepare a Comprehensive Opinion
of Value report, if requested (the Comprehensive Opinion
of Value is discussed below). However, the letter report
opinion of value provides the business owner with an
opinion of value for their business without incurring
the additional costs associated with a comprehensive
opinion of value report.
Comprehensive Opinion of Value
A Comprehensive Opinion of Value report is our highest
level of valuation service offered. Our opinion of your
Company’s fair market value is determined through
consideration and application of one or more
methodologies from all three commonly accepted valuation
approaches. Our opinion of value is based on the
gathering of all relevant information and the
application of extensive valuation procedures including,
but not limited to, a complete review and analysis of
the Company’s history and operations, analysis of
historical and projected financial data, and analysis of
the economy and the industry in which the Company
operates. Our comprehensive opinion of value is
communicated through a bound report that consists of our
valuation schedules and a detailed report narrative that
is 30-50 pages in length. The comprehensive report is an
Appraisal Report, pursuant to Standards Rule 10-2 of the
Uniform Standards of Professional Appraisal Practice (USPAP).
The comprehensive report provides a complete review,
analysis and discussion of the history and operations of
the subject company, all relevant financial data, an
industry and economic analysis, a discussion of all
valuation methods utilized, analysis and discussion of
valuation discounts (if appropriate) and our final
reconciliation of value resulting from the various
methods. The comprehensive opinion of value provides the
business owner with a completely self-supporting
valuation report. The comprehensive opinion of value is
often required for most gift and estate tax purposes to
satisfy the adequate disclosure rules set forth by the
Internal Revenue Service (IRS).
|
