• Determination of Cash Flow
  • $500-$1,000
  • Determination of Cash Flow is an add-on to a MicroValuation. The Cash Flow is usually determined by the client's CPA or by the clients themselves. If the client does not have a CPA to calculate the Cash Flow or the clients are not capable of determining the Cash Flow themselves, this add-on is required. In preparing this analysis, the analyst will help determine the company's cash flow, SDE (Seller's Discretionary Earnings) or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). This Cash Flow will be determined using the company's source of records including their Profit and Loss statements and/or company tax returns. This information will be analyzed, and adjustments will be made to determine the true Adjusted Profit/Cash Flow/SDE/EBITDA of the business. This information is then entered into the two spreadsheets to determine the value of the business based upon the three aforementioned data sets plus the average.
  • MicroValuation add-on
  • Determination of Adjusted Profit/Cash Flow/SDE/EBITA
  • Usually needed if CPA is not involved
  • Requires input from the client
  • Will require 3-5 years of financial statements

  • Broker Opinion of Value
  • $2,500 to $3,500
  • The Broker's Opinion of Value (BOV) is an in-house restricted use report. It is exactly what the title indicates: “A Broker's Opinion” of the business's value. The BOV is actually a "Calculation of Value". It constitutes a summary report with limited data that includes, recalculation of the company's balance sheet and income statement and the "Determination of Cash Flow/SDE/EBITDA". The data from the two aforementioned statistical databases (Bizcomps & Deal Stats) are utilized as they are in the MicroValuation. While there is more robust data and analysis involved than with a "Conclusion of Value" under USPAP, the BOV is limited in nature and does not rise to the level of a full valuation created under the NACVA or USPAP standards. The BOV's intended use is for buyers and sellers to determine value utilized for selling or buying a business. However, it is more extensive and requires more work and analysis and therefore costs more than a MicroValuation.
  • Complete written report
  • Provides at least one value from all three approaches: Cost, Income and Market Approaches
  • Provides reconciliation from the three approaches
  • Not sufficient for bank, court, IRS or other purposes

  • Complete USPAP Valuation
  • $3,500 to $20,000
  • This report is governed by the reporting standards of professional organizations that are in basic agreement upon the level and extent of research and analysis that must be performed in order to render the official report as a professional with the stated "Conclusion of Value". The information needed includes: company nature, background and history, historical financial reports, owner and management compensation, industry, economic and market research, financial benchmark, industry risk and specific company risk, and other related data. The analyst will attempt to value the entity under all three approaches: Cost, Income and Market. The analyst will then reconcile the three approaches and related values and will then apply appropriate discounts for Lack of Control and Marketability, etc., (if applicable) in order to render a "Conclusion of Value". This written report is what is accepted and required by courts and the IRS and is the basis for expert testimony.
  • USPAP-compliant Valuation
  • Fulfills the requirements of banks, courts and IRS
  • Meets ASA and NACVA standards
  • Full certified report
  • Sufficient for any valuation need

Located in South Orange County, CA
Serving all 50 States

Phone: 949.598.0986
Fax: 949.598.0916