This informal business valuation is for the purpose of establishing an “estimated” value of your business. The informal business valuation is produced to assist in developing various business strategies such as buy-sell strategies, business transition planning, estate planning or retirement planning.


We study and review the following documents necessary to begin an accurate picture:

  • Corporate Income Tax Returns– most recently filed (additional years if available)
  • Income Statements (3-5 years)
  • Balance Sheets (3-5 years)
  • Interim Statement– as of most recent completed month end


This engaging interview will give you an opportunity to step back and assess the strengths and weaknesses of your business. The interview is designed to inspire reflection and challenge complacency as we discuss questions that impact your business.


To arrive at our conclusion of Fair Market Value, we perform the following procedures:

  • Collect the company’s relevant historic financial statements.
  • Analyze the historic financial statements by calculating financial ratios and common-size financial statements for each historic year in order to identify trends.
  • Compare the company’s financial ratios and common-size financial statements to industry guideline data to identify any significant variances.
  • Assist management in preparing a (-or-review management’s) 5 year projection of the financial statements based on management’s assumptions as to the company’s future outlook.
  • Develop risk-adjusted Capitalization and Discount Rates to apply to the company’s historic and projected earnings, respectively.
  • Adjust historic earnings to eliminate the effects of excess and discretionary expenses, nonoperating revenues and expenses, and non-transferable revenue streams.
  • Applied Asset, Income, and Market valuation approaches to determine an estimate of Total Equity Value. The following methods could be considered:
    1. Asset Approach– Net Asset Value
    2. Income Approach– Capitalization of Earnings, Discounted Future Earnings, and Discounted Net Cash Flow.