Situations & Pricing
As a small business owner or professional you will run into situations where you need to professionally "value" your business. Business valuations are often done as part of any divorce or estate planning or asset/financial related process you are going through.
Insurance salesmen will often request a business valuation to determine the size of certain types of insurance policies. Business valuations are often conducted when you are anticipating a financial event in your business such as adding a partner or equity owner; the creation of a ESOP (Employee Stock Ownership Program); or prior to distributions to one or more investors.
Whatever the reason Eric Zetterholm, CPA, PLLC has developed a cost effective method of preparing business valuation work through a nationwide network of valuation experts, including CPAs, ASAs, CVAs, business brokers, and consultants that small business owners can utilize to cost efficiently determine the value of their business.
We and our affiliates have participated in hundreds of valuations of business interests in over 100 industries.
We have valued all forms of business ownership:
|
• Tangible and Intangible Assets
• Common Stock
• Preferred Notes
• Promissory Notes |
• Limited Partnership Interests
• General Partnership Interests
• Minority and Controlling Interests
• Stock Options and Warrants |
|
|
|
For all kinds of purposes:
|
• Divorces
• Gifts
• Estates
• Purchase or Sale of Interests
• Buy/Sell Agreements |
• Subchapter S Conversions
• Bankruptcy
• ESOPs
• SFAS 141, 142
• IRS 409a |
|
|
|
We think that by now, we must have seen everything at least once. Our team approach to preparing a business valuation allows us to charge you rates which are fair and reasonable. Below is a table outlining the different levels of valuations we typically perform:
|
BUSINESS VALUATION FEATURES |
SUMMARY |
BUY-SELL |
STANDARD |
HEAVY |
|
Typical Pages |
30-50 |
40-70 |
60-90 |
80-120 |
|
Transaction data sources |
Single |
Multiple |
Multiple |
Multiple |
|
Company Description |
Brief - several paragraphs |
Brief - several paragraphs |
Standard approx 2 pages |
Expanded usually 4-8 pages |
|
Supplementary text (approach, economic outlook, 50-60) |
None |
None |
Standard |
Standard |
|
Risk analysis vs. industry |
Summary |
Standard |
Standard |
Standard |
|
Financial projections |
None |
Summary |
Summary |
Detailed Projections - I/S, B/S, C/F, Ratios |
|
Industry analysis |
None |
None |
Brief |
Expanded |
|
Methods |
Up to 8, excludes DFE, DCF, Div Cap |
All appropriate |
All appropriate |
All appropriate |
|
Conclusion / Opinion vs. Indications / Estimate |
Indication |
Indication |
Opinion |
Opinion |
|
PRICE |
$2,400 |
$3,000 |
$3,600 |
$7,500 |
|
|
SUMMARY |
BUY-SELL |
STANDARD |
HEAVY |
If you don't know the difference between the different types of business valuations like a Standard or Heavy, don't worry. Just give me a call I can explain in 5-10 minutes about the differences and if you give me some background about you and your business, I can suggest what type or level of valuation you may want to use.
To Get Started
To start the business valuation process, send me an email at
ericz@ezcpa.com or call me, Eric Zetterholm, CPA at
828-418-1288 or 866-418-1585.
I'll need to ask you some preliminary questions to determine if and what type of valuation you may want to use. The general questions will be:
-
What INDUSTRY is your company in?
-
What is the PURPOSE for obtaining the valuation?
-
What SIZE is your company (in annual revenues)
The Valuation Process
The entire business process consists of only a few steps so you do not need to invest an inordinate amount of time in it and therefore you are able to continue running your business. We'll also work directly with your accountant, CPA or attorney when needed. The steps are:
-
You contact us for a brief conversation / question-and-answer session that lets us know your industry, why your valuation is needed, and the size of your company.
-
We will send an engagement letter to you that you will sign and send back to us with your full payment amount of the valuation.
-
You send/mail/fax/email us your last 5 years of corporate tax returns or financial statements for us to begin the work on your valuation.
-
We are usually processing 5-7 business valuations at any one time and our average turnaround time is normally 3-4 weeks.
-
We will complete the valuation and immediately email you a PDF copy while putting your official hard copy in the mail to you.
-
You'll receive your business valuation and we will schedule a phone call to review the documents and answer any questions you have about the valuation.
