• Business Valuation

    “You must look within for value, but must look beyond for perspective.” — Denis Waitley

    Limited Scope Valuation

Business Valuation: What Is Your Business Actually Worth?

Knowing what your business is worth is a critical part of basic business planning. There are many things you just can’t do, at least not in an informed way, unless you know what your business is really worth:

  • Borrow

    Borrow against the value of the company to finance operations or expansion

  • Plan

    Plan for the future of the business if you retire or something happens to you

  • Sell

    Sell the business for maximum profit under current market conditions

  • Give

    Give a gift of stock that is valued correctly for IRS purposes

  • Plan Your Estate

    Do your own personal estate planning in an informed way

Getting a Full Scope Valuation can be costly, but in some cases, you must know the exact value of your business so it’s unavoidable. At other times, a Limited Scope Valuation— an informed estimate of the value of your business— is enough.  We can do both.

When Is a Limited Scope Valuation Appropriate?

A Limited Scope Valuation can be used for the following purposes:

  • Financial Planning

    To determine a value so you can leverage the business, gift stock or plan for current/future operations, growth or expansion

  • Succession Planning

    To determine a value so you can take advantage of the many tools available to properly plan for the succession of the business

  • Estate Planning

    To determine a value based on an informed analysis so you can plan your own estate with a reasonable degree of accuracy

For these purposes, a Limited Scope Valuation is a more cost-effective option than a full valuation, and it still gives you the information you need.

What Goes Into Preparing a Limited Scope Valuation?

Preparing an accurate Limited Scope Valuation takes a substantial amount of time and effort. We include the following things, among others, to prepare a valuation that you can rely on in making business decisions:

  • Company Overview

    Compiling a broad company overview of products and/or services offered, processes, operations and finances

  • Team Assessment

    Assessing the breadth and depth of the knowledge and competencies of your executive team and managers

  • "Going Concern" Valuation

    Gauging how long your company would enjoy goodwill after a transfer of ownership to accurately value your “going concern”

  • Tax Testing

    Back-testing the last 5 years of your business tax returns to look at trends over time and ensure nothing has been missed

What Information Do We Need to Do a Limited Scope Valuation?

What we need to complete a Limited Scope Valuation varies depending on the business, but typically includes:

  • Executive Summary

    a summary of your products/ services and management team

  • Balance Sheet

    your current balance sheet showing all assets and liabilities

  • Adjusted Earnings

    a breakdown of your annual adjusted earnings

  • Key Plans

    your business and marketing plans

  • Taxes

    5 years of tax returns

When you request a valuation, we’ll give you a list of the information we need based on the specifics of your particular business.

We Have the Knowledge and Experience to Do It Right

We have over 10 years of experience doing Limited Scope Valuations. We have assisted over 50 local, regional, national and international companies in a variety of sectors, including:

  • Manufacturing

  • Distribution

  • Retail

  • Professional Services

Our clients have successfully relied on our valuations to obtain operations, inventory and equipment financing; to create Employee Stock Ownership Plans (ESOPs) and other employee benefits; to plan for a smooth succession with reduced tax liability, either by transfer of ownership or sale to a third party; and for their own estate planning.

Frequently Asked Questions About Limited Scope Valuation

It varies depending on the specifics of your business, but it generally takes about 2 weeks for us to complete our analysis and prepare and submit our findings.

When you engage us to prepare a valuation, we will let you know when we expect to complete it.

The total cost varies depending on the complexity of the business. A full scope valuation can cost $20,000 or more, but the cost of a Limited Scope Valuation usually starts at around $2,500.

When you request a valuation, we will provide a quote customized for your particular business.

If you have other questions, please contact us— we’ll be glad to answer all of your questions about our Limited Scope Valuation services.

Knowledge Is Power— Make Sure You Know the Value of Your Business

Whether you’re planning for the future needs of your business or for the day you hand it off to someone else, it’s important to have a complete, accurate picture of your business’s value.

To find out what your business is worth, or to find out whether a Limited Scope Valuation will work for you, please contact us. We will be happy to help you determine the true value of your business.

Contact Us to Schedule a Free Consultation
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