Calculation of Value
What it is
A faster, less expensive valuation for planning and decision-making.
A Calculation of Value is a limited-scope business valuation performed under NACVA Professional Standards methodology. It uses agreed-upon procedures instead of the full set required for a Conclusion of Value, which is why it comes back faster and costs less. The methodology is still defensible. The deliverable just isn't built to survive cross-examination. Use it when you need a real working number to plan around, not a courtroom-ready opinion.
When a Calculation of Value fits
Before you go to market, so you can set a realistic expectation with your spouse, your partners, and yourself. Owners who skip this step routinely get talked out of a number they should have held.
Track value year over year for strategic planning, board reporting, or buy-sell agreement maintenance. The same methodology applied year after year gives you a trend line, not a one-time snapshot.
Get a working number for partner buy-outs, equity refreshes, or compensation analysis without paying for, or waiting on, a full Conclusion of Value.
Model exit timing with your financial planner, your CPA, or your estate attorney off a defensible value input. Not a number someone scribbled on the back of an envelope.
What's included
- Recast financial statements, normalized for owner compensation, one-time items, and non-operating adjustments
- Market multiples review, comparable transaction data across Upper Main Street and Lower Middle Market deals in your industry
- Range opinion of value, a defensible low-to-high range instead of one made-up number
- One-hour walkthrough, a live call covering findings, the assumptions behind them, and the levers that move your range up or down
- Written summary document, concise and clear. This is not a full Conclusion of Value report.
Calculation vs. Conclusion of Value
| Calculation of Value | Conclusion of Value | |
|---|---|---|
| Scope | Limited, agreed-upon procedures | Full, all procedures required by methodology |
| Methodology | NACVA Professional Standards | NACVA Professional Standards |
| Defensibility | Directional, for planning & internal use | Defensible, suitable for litigation, IRS, ESOP |
| Deliverable | Written summary | Full written report with documented assumptions and limiting conditions |
| Typical timeline | 2–3 days from documents in (24-hour rush available) | 1–2 weeks from documents in (72-hour rush available) |
| Best for | Sale-prep pricing, planning, partner buy-outs, exit math | Court, IRS gift/estate/income tax, ESOP, major transactions |
Not sure which one you need? Get on a quick intake call and we'll tell you. We will not push you toward the bigger product if your purpose doesn't require it.
How we deliver it
Need it in 24 hours?
Rush Reports are available when the timeline is not negotiable. Board meetings, partner negotiations, financing deadlines, or an unsolicited offer you have to answer this week. 24-hour turnaround from the moment your documents are in.
Scope a Calculation of Value engagement
Tell us what the valuation is for. We'll confirm whether a Calculation is the right product, give you a timeline, and tell you what we need from you.
Request a Calculation of ValueNeed a defensible report instead?
If the valuation is for litigation, IRS gift or estate filings, ESOP, or a major transaction, you need a full Conclusion of Value. More rigorous, takes longer, built to withstand scrutiny.