Types of Formal Valuation Reports
An independent valuation should be conducted by an individual who has no vested interest in the target business. Usually a valuation specialist is called in for this reason as business owners and their legal advisors usually have no proper knowledge and/or skillset to perform a quality independent valuation.
A typical business valuation report produced by the valuer will contain a sound and unbiased analysis of a business and equally objective results of that analysis. For such reports, the valuer will have to practice professionalism, tap on their past experiences and conduct fair valuation research.
The Types Of Objective-Based Valuation:
● Calculation Valuation Report
This has the conclusion of the value of shares, assets or interest in the business derived from minimal review or analysis using little or no supporting evidence. It is typically seen as a brief valuation report.
● Estimate Valuation Report
This has the conclusion of the value of shares, assets or interest in the business derived from a basic review and analysis using some supporting evidence. It is typically seen as a less detailed valuation report.
● Comprehensive Valuation Report
This has the conclusion of the value of shares, assets or interest in the business derived from a detailed and in-depth review and analysis of the business, its industry and all the important influences, using substantial amount of supporting evidence. It is typically seen as a detailed valuation report.
The types of analysis commonly used in the above report types are the economic, the industry, the company operations, the company financial results and the review and analysis.
Engaging a valuer and selecting the appropriate report type for a business valuation involves a great deal of important considerations, such as the size and nature of the target business, the amount of publicity it has been receiving, the level of dispute and risk involved and the amount of data available for use.
Our comprehensive business valuation reports are prepared by specialists with over 15 years of combined field experience. Each valuation case is carefully strategised and reviewed by our in-house team of chartered accountants and valuers.
Contact us for a non obligatory review of your company’s valuation.