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Frequently Asked Questions
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What is
the Valuation Process?
Defining the Scope:
Engagements begin with an initial
meeting to discuss your situation and
valuation needs. After
understanding the issues and discussing
alternatives, a proposal is developed to
outline the scope of the project.
Gathering
Information:
After the
scope of work is determined, we will
supply you with a list of required
documents that will be necessary to
collect in order to compiles needed
financial data. Historical
financial statements, tax returns,
customer lists, and other information is
gathered by the client and delivered to
the BDC team.
Initial Analysis:
After the
requested financial information is
delivered to our team, it will be input
into our financial models in order to
conduct preliminary analysis on the
company's historical earnings and cash
flow. Additionally, industry
analysis is started.
Client Meeting:
We will
conduct a phone interview or a site
visit with key management in order to
discuss past and future company trends
and to understand company strategies and
operations.
Additional Data
Collection and Valuation Analysis:
Information from our meeting and
additional financial, customer, and
industry analysis is compiled.
Financial projections and/or
normalizations are developed and company
risk is assessed.
Client
Review and Management Representation
Letter:
The company,
industry, financial analysis and
normalization adjustments are reviewed
by the client and/or by company
management. This allows for
agreement on the underlying information
that supports the key valuation drivers
and decisions and serves as a sanity
check against key assumptions.
Finish
Report and Client Review:
Feedback from the
client review is assessed and if
appropriate is integrated. Based
on our review meeting, the draft
valuation report is completed and
reviewed wit our client and their
advisors.
Issue
Report:
After incorporating
any feedback, the valuation report is
finalized, signed, and issued.
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