What do I need for a valuation

Once you’ve decided to have your company valued, your valuator will present a company questionnaire. This questionnaire is designed for many types of business so all of the sections may not be applicable to yours. However, the initial reporting requirements are standard for any type of business. Providing this information as the first step of the valuation process allows your valuator to efficiently complete the project. If you don’t have some of the information, or you are unsure about what you can provide, speak to your valuator.

Initial Background Information Request

  1. The past five year's financial statements as prepared by an outside accountant (audited, reviewed, or compiled including footnotes and opinion letter)
  2. Five Years’ Internal Financial Statements (including income statements, balance sheets, and statements of cash flows)
  3. The past five years’ Corporate Tax returns
  4. Most recent interim financial statements for current year
  5. Fixed asset depreciation schedule (include purchase price, date of purchase, total depreciation, and net book value
  6. Accounts Receivable Aging Schedule (as of valuation date, or as close as possible)
  7. Accounts Payable Aging Schedule (as of valuation date, or as close as possible)
  8. Any other information you may deem necessary for the appraisal process
  9. Debt agreements
  10. Any tangible asset appraisals from the past five years
  11. Interest rate swaps, futures contracts, or other hedging agreements
  12. Most recent Real Estate Appraisal for all properties owned
  13. Any business appraisals or appraisals of company-owned intangible assets performed during the last five years
  14. Management's pro forma/forecasted financial statements
  15. Organizational chart
  16. Brochures or other publications describing your business
  17. Any industry or local economic information
  18. Business Plan
  19. Agreements
    • Key Person Life Insurance Policy
    • Stockholder
    • Buy-Sell (if not included in the stockholder agreement)
    • Operating Agreement (if not included elsewhere)
    • Article of Incorporation/By-laws
    • Customer
    • Employee, including non-compete agreements
    • Supplier
    • Stock Option
    • Intellectual Property (Licensing Agreements, Patents, etc.)
    • Other
    • Résumés of Key Management
    • Most recent major industry trade publications
    • Any other information you may deem necessary for the appraisal process

In addition, you’ll receive a questionnaire detailing specific question about your business history, markets, expectations, family participation, employees, and other questions relevant to the operation of your company.