Information Needed for a Business Valuation
In order to complete a valuation assignment, the following information is generally needed:
-
Five years of complete historical financial statements (income statements, balance sheets, cash flow statements, and statement of changes in retained earnings and notes to financial statements) plus current year to date interim financial statements and the same interim financial statements for the proceeding period.
-
If available, projected financial statements, income statements, balance sheets and cash flow statements including your notes to the projections that indicate what assumptions are used and how any changes from historical performance are justified under the alternative scenarios provided.
-
Five years of corporate tax returns.
-
Articles of incorporation, by-laws, restrictive agreements, or any other important documents (employment, covenant not to compete, non-solicitation, supplier and franchise agreements, equipment lease or rental contracts, loan agreements, labor contracts, customer agreements, royalty agreements, employee benefit plans, and so on).
-
Detailed real property & fixed asset information, including any recent appraisals, or estimated market values, if no appraisals exist..
-
Copies of sales materials or other promotional literature.
-
Officers’ compensation for the last five years.
-
Addresses and descriptions of all facilities.
-
History of Company and major competitors.
-
Detail of Company ownership and any recent transactions involving company stock or stock options.
-
List of ten largest customers and their sales for each of the last five years.
-
List of ten largest suppliers by purchase amounts and terms of payment for each of the last five years.
-
Additional information may be required after we have reviewed the above requested information.
After we have evaluated this information we conduct a site visit with management in order to gain a better understanding of the company's current and future prospects.