Valuation Steps & Procedures

The following is provided as an overview of Advanced Business Valuations’ appraisal process. Each step in the process is necessary to ensure the highest degree of quality.

Introductory Phase

  • The Company and Advanced Business Valuations are introduced, usually by referral from one of our existing clients or from one of the Company’s professional advisors.
  • Advanced Business Valuations provides its qualifications and requests sufficient financial and descriptive data from the Company for initial review. Telephone conversations and/or initial meeting clarify the scope and purpose of the valuation assignment.

Engagement Phase

  • We develop an Engagement Letter which specifies the major elements of the valuation assignment, including the standard of value, the purpose, the “as of’ date, the scope of the expected valuation report and opinion, the expected time requirements for completion, and the proposed arrangement for fees and expenses.
  • The Company executes the Engagement Letter with our retainer and collects information outlined on Advanced Business Valuations’ Information Checklist.

Valuation Phase

  • Advanced Business Valuations receives information from the Company, as requested on the Information Checklist.
  • Preliminary analysis of the Company is begun and appropriate industry background research is initiated.
  • An on-site visit is scheduled with Company management. We will visit with management at Company Headquarters in order to:
    1) Review in detail the Company’s background, financial position, operations and future prospects with appropriate management personnel,
    2) Review appropriate corporate documents not normally exchanged by mail unless necessary,
    3) Tour the operations, respond to questions from management.
  • The financial and valuation analyses are completed and a draft report developed, which is sent to Company management for review. Our consultant will discuss the appraisal in draft form with management in order to assure factual correctness and to clarify any possible misunderstandings.
  • The valuation report is finalized. It is then reproduced in sufficient number for the Company’s distribution or documentation requirements.