Valuation Services

Duran Advisors offers a full array of valuation services for their clients. Each of these levels of reporting have different requirements. To get more information of documentation, pricing or just to get help to determine the report needed, please call our office or use the scheduling link at the top of our web pages.
Broker’s Opinion of Value (BOV): This opinion of value of the business is determined using the Income, Asset, and Market approaches. From these approaches, several of twelve different models will be selected. This report includes current industry-standard rules of thumb and a recasting of the financial statements to show the business’s true net profit, called Sellers Discretionary Earnings or “SDE”. The report will contain complete explanations as to how numbers were calculated. The report also includes a glossary to help our sellers better understand the terminology.
 Typical uses are as follows:
  • Selling price for companies with under 5 million in gross revenues or under 2 million in EBITDA “Main Street” business transactions
  • Real Estate Opinions of Value are available add-ons for an additional fee
  • Our most popular requested report, by far
  • Quick turn-around – The report is typically generated in approximately a week.

Calculation of Value: Although Uniform Standards of Professional Appraisal Practice (USPAP) has eliminated language referring to “Limited Appraisal”, the American Institute of Certified Public Accountants (AICPA) recognizes a “Calculation of Value” also known as “Value Calculations”. A calculation of value is NOT an appraisal because the appraiser is not coming to a “conclusion of value”, but merely a “calculation of value” based on a limited amount of investigation and due diligence. Although a Calculation of Value does not meet USPAP or IBA Standards, it can be a very valuable tool for business owners or professionals.Typical uses are as follows:

  • Assisting an owner or broker to establish an initial asking price for the potential sale of a business
  • Estate planning
  • Business planning
  • Developing a “preliminary” value for litigation matters
  • Any matter where an “initial” or “calculation” of value is acceptable

Complete Appraisal – Summary Report: Although USPAP and the American Society of Appraisers address only a single format for written reports, many practitioners offer a “summary report”. The Institute of Business Appraisers acknowledges this report in IBA BV Standard 4.1 and notes that “By its nature, the letter form of report is an instrument of brevity. It should contain at least a summary of the material factors that led to its conclusions but is usually intended by the parties [to the appraisal engagement contract] to reduce the normal appraisal burden of writing a comprehensive report, and thereby allow the client to realize some economic benefit. However, the appraiser is still required to perform materially the same investigation and analysis as would be required for a comprehensive report and maintain in his files the work papers necessary to support the conclusions stated in the letter form report.” Our summary reports are usually between 30 and 60 pages and are typically used for the following purposes:

  • Merger or acquisition
  • SBA or conventional financing
  • Estate tax or gifting purposes
  • Any matter where the intended users are “familiar” with the subject to be valued

Complete Appraisal – Self-Contained Report: This is a formal presentation of the value of a business in a self-contained written report. If a valuation has the potential to go to court, or if the report needs to be reviewed by others, such as the IRS for tax implications, this type of report explains in full detail how the value was derived. Uniform Standards of Professional Appraisal Practice (USPAP) and American Society of Appraisers (ASA) address the above as a “Comprehensive, Written Business Valuation Report”. The Institute of Business Appraisers (IBA) addresses the above as a “Formal Written Report”. Typical uses are as follows:

  • Litigation support
  • Large, complex transactions
  • Initial implementation of an Employee Stock Ownership Plan (ESOP)
  • Any matter where there are many “intended users”

Documents You Will Need To Value Your Business (May Vary By Valuation)

  • 3 Years Profit and loss/Year to Date Profit and Loss statements
  • 3 Years Tax Returns
  • 3 Years Balance Sheets/Current Balance Sheet
  • Itemized list of all furniture, fixtures, and equipment (FF&E)
  • Value of inventory
  • The legal description of the real estate and any legal maps or plats or recently dated appraisals or if leasing space, copy of the lease