To produce a comprehensive business valuation that is more than numbers – a valuation that tells the story of your business – a valuation professional will interview you and your key managers to learn about your business and what makes it operate efficiently.

The valuation professional will also learn about your industry, your customer base, how you do business and whether you are operating in a high-risk or low-risk environment.

Before you call a valuation professional:

  • Have a working idea of where you see your business in five years. Will you be running it, or are you looking to exit in that timeframe?
  • Make sure your financials are in order and your books are clean. Get any personal items such as loans and car leases off the balance sheet. Make sure all adjustments are made and the reporting is consistent.
  • Check the accuracy of your operating agreements and other legal documents and bring them up to date.
  • Be prepared to walk through the strengths and weaknesses of your business with candor.

 The documentation the valuation professional will need includes:

  • Financial statements
  • Tax returns
  • Operating agreements
  • Buy-sell agreements
  • Governing documents
  • Contracts
  • Customer lists

The documentation list may seem overwhelming, but it helps establish important information and intangible factors that impact valuation, such as risk.