What is Adams Brown’s valuation process?
- We first look at the company’s financial history (generally five years) and apply an income approach (using the company’s normalized cash flow).
- From there, we research comparable company transactions to apply a market approach.
- We request 5 years of tax returns or financial statements from you to go through our analysis.
- Once we have reviewed the requested information, we schedule a 45-minute client interview to ask more detailed questions about the financial statements and the company’s operations. We can issue a draft report about 1-2 weeks after the client interview.
- We request another 30-to-45-minute call to discuss the draft and our findings with you.
- If there are multiple owners or shareholders, then they generally need to be part of the process.