Getting to the Heart of Business Valuation- IV (Business Valuation Process)

After tackling issues like how to select the right business evaluator and understanding the various methods of a business valuation, and checklist of documents to be kept ready, this post will talk about the business valuation process adopted by SunbeltNE business brokers. Adopting a right business valuation process ensures the sale of business will bring in a better sale price compared to arbitrary valuation of business.Business Valuations

Step 1: The Broker meets with the client to determine what type of valuation is required.

Step 2: During the meeting, the Broker will assist in the completion of the Company Profile information needed for the type of valuation selected.

Step 3: Once the Company Profile has been completed and the required financial, company and other general documents and information are obtained, the package of information is mailed, faxed, or emailed to third party Valuation Analyst.

Step 4: The Valuation Analyst will review the documents and begin the valuation. During this process, if the Analyst has any questions or requires additional information, he will contact the Broker to obtain them.

Step 5: The valuation process for a Snapshot, Value Analysis, or Limited Formal will be taken with the help of required financial information. A completed Company Profile is then generated, and all questions that arise are answered. The Mergers and Acquisitions and all Comprehensive reports will take time due to the complexity of the valuation.

Step 6: The Analyst will issue a preliminary review of the valuation. This review is critical to the final report. It assures that all details have been considered and allows for any adjustments that may need to be made based on new information or further clarifications.

Step 7: Once the review with the Broker has been conducted, the Analyst will finalize, print, and send the final valuation report.

Step 8: The Broker will receive hard copies and an electronic copy (if requested) of the final report. This report is sent to the business seller/owner. Thus a planned business valuation involves lot of procedures and systematic planning to ensure the right value is found out to help sell business.

To know more information about SunbeltNE’s business valuation services.

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