Certified Valuation Report Overview

The report begins with an executive summary that provides a concise overview of the subject company, the purpose of the business valuation, the valuation date, and the final opinion of value. This section highlights the key assumptions and factors that influenced the conclusion and gives readers an immediate understanding of the results.

As part of the valuation process, we identify and analyze the industry in which the subject company operates. The appropriate industry classification is determined using recognized sources, including IBISWorld, to ensure the company is evaluated within the correct market and economic context. This section includes an overview of U.S. economic conditions, industry trends, risk factors, and operating characteristics relevant to the business.

The company’s financial statements are then analyzed in detail. Historical income statements and balance sheets are reviewed and adjusted, where necessary, to present a normalized view of ongoing operating performance. This analysis may include removing non-recurring, discretionary, or personal expenses, adjusting owner and related-party compensation to market-based levels, and ensuring consistency across reporting periods. The company’s financial performance is also compared to RMA industry benchmark data for businesses with similar revenue levels to provide additional context and support.

Once the financial analysis is complete, the valuation methods most appropriate for the company, ownership interest, and purpose of the engagement are applied.

The income approach evaluates the company’s ability to generate future economic benefits by converting normalized earnings or cash flows into a present value using capitalization of earnings or discounted cash flow techniques. Key assumptions related to growth, risk, and required rates of return are developed using recognized market data and professional judgment.

The market approach estimates value by analyzing pricing multiples observed in transactions involving comparable privately held companies. These multiples are evaluated and adjusted, when appropriate, to reflect differences in size, profitability, growth, and risk characteristics between the subject company and the guideline companies.

When relevant, the asset-based approach is also considered, particularly for asset-intensive businesses, holding companies, or situations where asset values are a primary driver of value. This approach focuses on the company’s underlying assets and liabilities and evaluates whether reported book values reasonably reflect economic value.

If the engagement involves a non-controlling ownership interest or an interest that is not readily marketable, discounts may be applied where appropriate. A discount for lack of control reflects the limited ability of a minority owner to influence key business decisions, while a discount for lack of marketability reflects the restricted liquidity of privately held ownership interests. Any such discounts are developed using recognized empirical studies and are applied only after careful consideration of the specific ownership rights, restrictions, and facts of the engagement.

The report concludes with a certified opinion of value issued by an accredited valuation analyst in accordance with NACVA professional standards and IRS Revenue Ruling 59-60. This conclusion is suitable for partner buyouts, shareholder disputes, mergers and acquisitions, estate and gift tax matters, divorce proceedings, SBA or bank financing, and strategic planning.

Comprehensive supporting schedules and appendices are included to provide full transparency. These materials document financial adjustments, valuation calculations, industry data, benchmarking analysis, and key assumptions, allowing the report to withstand professional, legal, or regulatory review if required.