Exit Planning: Segment B
assemble and complete a company valuation
Once you have set your financial objective, the next step is to complete a valuation on your business to see if your current operating numbers will meet your financial goals.
business exit planning
The Process Flow
1: Exit planning review:
- discuss goals and objectives of the valuation
- review tax implications
2: Complete the business valuation report:
- collect data
- select value parameters
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CFOne Advisory 1.571.306.3590 (DC) 1.804.527.1103 (Richmond) or e-mail your questions to: |
business exit planning
Types of Valuations
An Value Assessment Report
Provides an approximate indication of value based upon the performance of limited procedures agreed upon by the appraiser and the client. The results can be expressed as a single dollar amount or as a range.
The valuer will only consider limited relevant information and will perform only a limited analysis. This type of report is generally used by smaller companies.
This type of report is complimentary at no cost or obligation. It is a good starting point when designing your business exit strategy.
A Limited Scope or
Market Valuation Report
Provides a fair market value opinion. It is a more extensive analysis: Asset, income and Market Approaches are considered. Market methods are based on generic group multipliers. Discounted Future Cash Flows and Discounted Future Earnings methods may be available; sometimes historical methods only. Public company comparisons are non-existent, or at best, very limited.
A limited review of business risk factors is performed and the competitive environment is examined, and there is an abbreviated company description. This is the most common report to support a business sale and the results are often used to support the pre-approval of a business for Commercial financing, thus limiting your need to hold a Seller's Note!
A Comprehensive or
Self Contained Report
Provides an extensive analysis. All valuation methods are applied as applicable. Comparable sales transactions and multipliers for the Market methods are very specific to the Company's business. Public company comparisons are available and used when needed.
A comprehensive review of the business risk factors is undertaken, a detailed description of the company and its positioning is provided, and a review and assessment of the prevailing economic conditions in the specific industry is undertaken.
A member of our team will discuss the type of valuation need based on our financial goals and tax implication. Let's discuss:
Helpful Tools
Some helpful forms business owners:
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