The Valuation Process

Our typical engagement begins with, in response to an inquiry, a review of as much information about the underlying business as you are comfortable sharing at this very early stage. We then prepare a written proposal, which outlines the entire valuation process and scope of the engagement. Most often, we quote a fixed fee or narrow range of fees, so that you are able to budget with a high degree of certainty. Once we are authorized to proceed, we request additional background and financial information, which facilitates our preparation for the on-site management interview. Our interviews are thorough, and our goal is to get our finger on the pulse of your company. This is the essence of the valuation process. Following the due diligence meetings, the bulk of the work takes place in our offices, with telephonic and e-mail follow-up as needed.


In virtually every case, we consider the applicability of the three approaches to value: Cost (Asset-Based), Income and Market.  Typically, a holding company (e.g., a family limited partnership invested in real estate or marketable securities) involves the application of the net asset method under the cost approach.  A profitable manufacturing or service business more readily lends itself to the application of market and income-based approaches and methods.

In most engagements, we first derive a value or range of values in work paper format for presentation to the client as an oral report. We then proceed with the preparation of a narrative appraisal report, designed to outline our entire methodology, assumptions and conclusions. Our opinions and reports comply with the Uniform Standards of Professional Appraisal Practice (“USPAP”) and the relevant business valuation standards. We clearly communicate every step taken in the valuation process, and we avoid the use of jargon and overly technical terms and descriptions that, more often than not, confuse rather than explain.

We are available to discuss our reports and findings at any time. In fact, in tax-related valuation matters, we make this commitment: The initial fee for the original valuation report contains an allowance for an initial consultation on any subsequent Government inquiry or audit.