We start the process by understanding the reason for obtaining the value and a few other key pieces of information. We then provide a detailed list of all the items needed to complete the analysis.
Once the initial data is obtained, the process looks like this:
- Initial analysis of the financial data and historical trends – This allows us to develop an understanding of the business history and be ready with informed questions for the Owner / Management meeting.
- Owner / Management meeting and site visit (if necessary) – Business owners love to tell their story and we love hearing it! This phase is where the client can tell their story about the business. How it started, where it is going, what are the challenges, why it is successful, etc. This phase is the time where we can gather non-financial information about the company. We are big believers in there being a story behind the numbers. This is where that story gets told.
- Detailed analysis and application of valuation methods – Once the numbers and the other information is gathered, it is time to incorporate that information into the detailed valuation analysis and incorporate the various methodologies used to value the business. Simultaneous with this phase, we are working to prepare the schedules and reporting (the “deliverables”).
- Review preliminary results with the client – We are big believers in making certain that our clients understand what the analysis means. At this point, we review the information and results and field questions, comments, or other considerations that may impact the final value.
- Finalization – We deliver the valuation in final form to the engaging party or parties.