When you call us about a potential business valuation, we will chat briefly about the following in order to provide you an estimate of the costs and timing involved (do not send email answers to the below to us- it will be much more effective for us to pursue a full discussion with you on the phone):
> Purpose of the business valuation (e.g., estate, gift, purchase or sale, divorce, shareholder dispute, business damages, etc.).
> Parties involved (if the matter is litigation-related it will also be necessary for us to do a conflict check).
> Interest to be valued (e.g., a 30% minority interest, a 100% controlling interest, a non-controlling membership interest in an LLC, etc.).
> Standard of value to be used (e.g., fair market value, fair value, etc.- if you don't know we will figure that out).
> Valuation date- the date the value is be determined as of (e.g, date of death for estate, date of separation in a divorce, etc.).
> Project timing- When the completed valuation report is needed. If the matter is litigation-related, we will need to know when valuation reports by the experts must be exchanged, the date (if set) of the trial, etc.
> General overview of the company/practice/partnership/LLC to be valued- What it does, where it is located, size (e.g., annual revenues), presence of any subsidiaries or affiliates, corporate form (C or S corporation, LLC, limited partnership, general partnership), does it own any real estate, etc. We will pursue general questions with you on these and related issues to gain a better understanding.
> Access to management- Will we have direct access to interview management, or will your attorney need us to prepare questions in order to take management's deposition?
> Engaging party- Who is the client that would be engaging us if you move ahead (e.g, company, estate, party making gifts, specific shareholder, law firm under attorney-client privilege)?
Financial Information Needed for a Cost Estimate for a Business Valuation
In addition to the brief discussion above, you will need to provide us a recent detailed annual financial statement and federal tax return (with all attachments) for us to determine if there are any unusual complexities, as every company is unique. Without looking at financial information it is difficult to provide you a meaningful cost estimate for the business valuation. We keep all information submitted confidential and are glad to provide you our non-disclosure agreement if you need it.
If You Engage Banister Financial to Prepare a Business Valuation
> Engagement letter- We will send an engagement letter outlining the services we will provide and the associated costs. This is to be signed and returned to us along with an initial deposit.
> Information needs list- Once engaged, we will send you a list of information to send to us to get the valuation underway. Every company is unique, so we will prepare a list targeted at the specific company based on its industry, company specifics, and from a review of initial financial information provided. You can and other parties involved can upload information to a password protected, encrypted ShareFile folder created for your matter.
> The company interview- Once the information is received and reviewed by us, we then set up a time to go to the company for a management interview. If the matter involves litigation and a company interview is not possible, we will instead prepare a detailed list of questions for your attorney to ask in a deposition of management. Alternatively, if the valuation is for a confidential potential sale and our presence would create concern by employees, we are glad to make alternative arrangements for the interview. In some asset holding entities a site visit may not be needed. For a good overview of the general types of issues covered in a valuation interview read our article on the subject, The Effective Valuation Interview.
> Business valuation report preparation and issuance- Upon completion of the interview, Banister Financial prepares its detailed analysis of the company in a business valuation report, submitting a full, preliminary draft to the client for review. After making any necessary revisions (if any), we then issue the final, signed valuation report.