The following are the types of business valuations and reports that are commonly required or requested by clients:
- Complete Valuation with a Comprehensive Valuation Report involves collecting, analyzing and reporting all data necessary to provide our client with an unambiguous conclusion of the value for the business, business interest, security or note. The “full” or “self-contained” report contains all of the data, information, descriptions, assumptions and references needed for another business valuation analyst to replicate the valuation.
- Complete Valuation with a Summary Valuation Report is a comprehensive valuation that is reported in a summary report. According to the AICPA standards and USPAP, all of the required elements of the report are there; however, some of the data, information, description, or procedures for the valuation may be documented in the analyst’s file and summarized in the report.
- Limited Valuation (as compared to a “complete valuation”) generally involves valuation scope limitations (possibly fewer procedures than would be recommended by the circumstances) or limitations in available data. These limitations and assumptions are disclosed in the business valuation report.
- Hypothetical Valuation is based on facts that are completely or partially determined by the client, instead of actual data. Generally the client wants to know the business value under a specific set of assumptions or uncertain future circumstances. A business valuation of this type must be clearly labeled as “Hypothetical” to comply with professional ethics.
- Calculation of Value and Calculation Report is prepared by the analyst when the client needs an oral report or a calculation report prepared for planning or internal owner discussion and requests an approximate indication of value, or range of values, based upon the performance of agreed upon valuation methods by the analyst and the client. A consulting arrangement of this kind is not an adequate basis for an expert conclusion of value.
- Consulting about Valuation needs for a company or subject interest for a family law case or company planning.