Standard Valuation Services

Market Data and Basic Calculation of Value Report

This review and report results in a benchmark range of value based on typical financial models used by small business buyers, along with actual market data on acquisitions involving companies similar to the subject company. This involves a basic recasting of recent company financials and application of market ratios to the resulting economic benefit stream. The standard for this report is Fair Market Value using M&A methods, and the economic benefit stream used is owner’s discretionary cash flow. This review and report is appropriate only for companies with less than $1,500,000 in annual revenues.

Standard Business Valuation

This review and report results in an indicated value based on a more detailed financial review, analysis of company-specific risks and value-enhancing attributes, and a more extensive review of market data. It involves fully recasted and adjusted 3-year financials and application of multiple valuation methods within all three valuation approaches. The standard for this report is Fair Market Value using methods within the Asset Approach, the Income Approach, and the Market Approach. The result is a single indicated value based on multiple weighted valuation methods. The economic benefit stream selected is based on that which is most appropriate for the subject company. This may include tax-adjusted Net Income, EBT, EBIT, EBITDA, and discretionary cash flow. This review and report is typically appropriate for companies with annual revenues ranging from $500,000 to $10,000,000.

Comprehensive Business Valuation

This analysis and report builds on the Standard Business Valuation. It may include additional research, projections, future cash flow analysis, creation of proforma financial statements, a 5-10 year review, and more complex financial modeling. This analysis and report is typically appropriate for companies with specific risk or value-enhancing factors, those in an industry that is growing or declining rapidly or that is highly specialized, and those that are seeking to sell or acquire a partial interest in the subject company. It is also appropriate for companies seeking valuation to support growth plans in anticipation of a future merger or acquisition, and is often followed with Management Advisory Services to enhance the value of the company.

Consultation Regarding Value

A Consultation Regarding Value is a service that does not result in a report and may or may not include a final indicated value. This custom service often involves a working session with management of the subject company to assist in estimating its value. For the subject company, this is often used when an estimate of value is needed for internal planning or in contemplation of a merger or acquisition, but where a report is not needed to substantiate the value. This may also be followed with Management Advisory Services to enhance the value of the company in contemplation of a future merger or acquisition. This service is also appropriate for the acquiring party in support of making an informed and supportable offer to purchase or in the due diligence process.

Custom Valuation Services 

In addition to the standard valuation services listed above, Burley & Associates also offers more detailed or custom reviews, analyses, consultations, and reports. These may include a full-scope valuation, intellectual property valuation, market surveys, feasibility analyses, multi-stage growth models, and other custom valuation services.

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