Valuation Process

Valuation Process

Valuation Services
Valuation Process
Valuation Experience
Sample Report
Glossary of Terms

When performed on a going-concern basis, the valuation of a company is, in general, based on the projected earning of the company. In other words, how much could a hypothetical buyer of the company expect to receive as a return on his or her investment. These projections are based on the current and historical financial condition of the company as represented by the financial information provided to the appraiser. They are also based on company management’s estimate of future earnings.

The entire valuation assignment generally takes approximately six (6) weeks after all pertinent company information has been received by the valuation analyst. This information includes five (5) years of historical financial statements (or tax returns), including the most recent interim statements (or quarterly returns). This information also includes company background information, year of incorporation/formation, management experience, information on facilities, customer base, competition, employees, shareholder/ownership breakdown, extraordinary expenses incurred during the year, and management’s projected earnings for the next five years.

Prior to the completion of the assignment and at around three (3) weeks into the project, a Discussion Draft is sent to management to verify that an accurate financial picture has been presented to GROCO and that the projections made are a realistic expectation of future results. After this Discussion Draft is reviewed and accepted by the company management, the final report is issued. This draft phase is for the appraiser’s benefit. Any attempt to use this phase to control or affect the ability of the appraiser to perform an independent review of the business will not be tolerated.

We hope you found this article about “Valuation Process” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

GROCO.com is a proud sponsor of The American Dreams Show.

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

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