When you call about a possible business valuation we will chat briefly about the following to enable us to provide you an estimate of the costs and timing involved (do not email answers to the below to us- a phone discussion is more effective): Purpose of the Business Valuation
Purchase or sale?
Names of the company and individuals involved?
Who is giving, selling, transferring what to whom?
We need to do a conflict check to be sure there is no issue that would preclude our involvement.
When will the completed valuation report be needed?
If the valuation is litigation-related are there dates set for the exchange of reports and trial?
Is the information needed for the valuation readily available? How long will it take to receive it?
Interest to be Valued
If a corporation:
voting or non-voting?
number of shares?
percentage of total?
voting or non-voting
"straight" preferred or convertible into common shares?
If an LLC:
voting or non-voting?
Member interest with a "preferred" return?
Do you have a copy of the LLC's Operating Agreement you can provide us?
If a partnership:
Is the partnership a general or a limited partnership?
Is the valuation of a general partner interest or a limited partner interest?
Do you have a copy of the partnership agreement you can provide us?
Standard of Value to be Used
we help determine this through discussions with you, and, if needed, your attorney
we help determine this through discussions with you and, if needed, your attorney
General Overview of Company (if you do not know all of this detail don't worry)
What does the company do (very generally) and where it is located?
Approximate size (e.g., annual revenues)?
Does the company have any subsidiaries or affiliates, and if so, what do they do?
What is the company's corporate form (corporation, LLC, partnership, etc.)?
Does the company own its real estate, or if not does it lease it from a related party?
Financial statements- does the company get "audited," "reviewed" or "compiled" financials from its accounting firm or only tax returns?
Access to Management and Information Needed for the Valuation
Will we be able to interview management?
Will we be able to obtain all information we will need?
Engaging Party(who will be engaging us to prepare the valuation?)
Party making gift?
Law firm under attorney-client privilege?
If the valuation is divorce or shareholder dispute-related will it be prepared:
for one specific party?
jointly for the parties or under court appointment?
Financial Information Needed for a Cost Estimate for a Business Valuation
In addition to the brief discussion above, provide us the following company financial information:
Annual financial statements
Federal tax return (with all schedules and attachments)
These items are necessary to identify unusual complexities, if any, that will impact the time and costs involved, as every company is unique. Without looking at financial information it is difficult to provide a meaningful cost estimate for the business valuation. We are glad to provide you our non-disclosure agreement if needed.
If You Engage Banister Financial to Prepare a Business Valuation
The Steps From Inception to Completion of Your Business Valuation:
We send our engagement letter outlining the services we will provide and the associated costs.
Sign and return it to us along with the initial deposit.
Information Needs List
We send an initial information needs list targeted to the specific company.
Upload the information items to our secure ShareFile folder.
Once we receive everything (so we can see the entirety of the situation) we begin.
Banister Professionals Prepare for Company Interview
We go over the initial information provided.
We do any other necessary research and analysis to prepare for the interview.
The Company Interview
We schedule and perform the management interview.
If the matter involves litigation and an interview is not possible, we prepare questions for your attorney to ask in a deposition of management.
Valuation Analysis and Preliminary Draft Valuation Report Preparation
Armed with a clear understanding of the company Banister's work intensifies.
Research, analysis, and the conception and development of the appropriate valuation methodologies come together as the valuation report takes shape.
A typical valuation report might be 50 to 150 pages in length (varies by company as every situation is unique).
Preliminary Draft Valuation Sent For Review:
A preliminary draft of the valuation report is sent to you for review.
The draft is your opportunity to see how we assessed the situation.
The draft is very detailed and provides a clear overview of our analysis and valuation.
You can offer any additional facts you think may be relevant or to ask us any questions.
Final Business Valuation Report Is Issued
Comments on the preliminary draft are considered.
Banister makes any necessary revisions it believes are appropriate.
The final signed report is issued!
Location of Our Offices
1338 Harding Place, Suite 200 Charlotte, North Carolina 28204 Phone: (704) 334-4932