Business Valuations
The Bankability Method™
Is the business bankable - ie. can the business obtain bank financing for acquisition and merger purposes? Innovative Business Advisors' signature process for valuation - The Bankability Method™ - measures the ability of a company to obtain bank financing.
WHAT IS A BUSINESS VALUATION?
Business valuations are commonly referred to as business appraisals that are performed by certified valuators who adhere to published valuation standards set forth by well-known, accredited organizations. A business valuation report issued by a firm with certified valuators holds credibility. Our valuation experts are certified by the National Association of Certified Valuators and Analysts (NACVA) – the most recognized and esteemed organization in the valuation industry.
WHEN DO YOU NEED A BUSINESS VALUATION?
Whether you are a business owner contemplating the sale of your business, raising bank capital or investor equity, pursuing a legal claim, preparing your succession or planning any array of accounting and IRS-related reporting events – you will want to obtain a valuation report that is credible and protects you against others from discrediting the valuation.
If you are facing any of these life events or are at risk of possible IRS-related penalties or losing more than $5,900 on your transaction, then we highly recommend the insight provided by a business valuation report.
Your business valuation report will:
- Inform the list price and provide the fair market value of your business if you’re selling
- Deliver the credible and reliable value of your business if buying out a shareholder
- Provide the value of your shares, as reported to the IRS, if gifting to a family or friend
- Add valuable credibility during negotiations or legal proceedings
In some instances, you may choose to provide the valuation report to your counterparty to further strengthen the reliability of the valuation and remove barriers. In other cases, you may be required to disclose the valuation report as required by the IRS when gifting shares or purchasing a business.
WHICH BUSINESS VALUATION REPORT IS RIGHT FOR ME?
Business valuation reports can be prepared for many different purposes. That's why we offer three types of business valuation reports: Informational Valuation, Quality of Earnings Report and Certified Valuation. Below is a summary of what these three reports entail, how they differ, and when you might benefit most from each.
INFORMATIONAL VALUATION REPORT
Informational Valuation Reports are less time-intensive to produce and more affordable. Typically 30-40 pages, these reports provide valuable insight to establish a market price, support exit planning or inform internal business planning decisions. This report is best suited for individuals who don’t need a certified valuation and are comfortable with more limited procedures and reporting. All reports are prepared by financial analysts of our valuation team.
CERTIFIED REPORT
Certified Valuation Reports are prepared by a certified business appraiser. Typically 65-100 pages, these reports include in-depth written analysis of the nature and history of the company, industry and economy, financial analysis, and conclusion of value. This type of report is best when you expect a lot of scrutiny over the value or when there is a high level of interest in detailed support and explanation of the valuation.
QUALITY OF EARNINGS REPORT
A Quality of Earnings (QoE) Lite report provides a faster, more affordable way to validate the past performance of a business to support the due diligence phase of an acquisition. Typically around 65+ pages, the QoE Lite report includes a careful analysis of historical revenues and expenses, sales, major customer concentrations and expense add-backs. This report is prepared by our in-house team of NACVA-Certified Master Analysts in Financial Forensics (MAFF).
START THE PROCESS WITH A FREE CONSULTATION
Your engagement starts with a free consultation to discuss your valuation needs. You’ll engage directly with our team and will experience an organized and secure data collection process if you choose to move forward.
As a new client, you will register to gain access to our secure portal. The portal will be used to collect information and provide your completed valuation report once it is ready. You will not send us sensitive documents and information over unsecure email.
For returning clients, please login anytime to add or edit your information. You will be notified via email when your report is ready for download.