Preparing for a Business Valuation

Whether you’re selling a business, preparing for a merger or acquisition, going through a divorce or conducting estate planning, it’s necessary to understand the value of your company.

As the most valuable asset many individuals possess, knowing the current “value number” is key to making smart financial decisions for today and the future. While the business valuation process can be complex, the good news is that the valuation is actually rather straight forward. The key is to be prepared for the number and type of documents that will be requested as part of the process. To help clients, prospects and others understand how to prepare for a valuation, Hanson & Co, has provided a list of the most commonly requested documents;

Most Commonly Requested Documents

  • A brief history of the company;

  • Information on marketplace, company’s position and any competitive advantages;

  • Organizational chart highlight key positions and their responsibilities;

  • Resumes of the company owner(s), officers and key employees;

  • Copies of any contracts with top executives and managers;

  • Articles of incorporation, business tax identification numbers and related filings;

  • Copies of the company’s tax returns covering the last three to five years;

  • Profit and loss statements;

  • Documentation on any copyrights, patents, domain names and other intellectual property;

  • Details pertaining to any real estate owned or leased by the business and corresponding documentation including appraisal;

  • Information on any pending matters with the IRS, state or local regulators or tax authorities;

  • Details on the value of inventory or supplies owned;

  • Information on any machinery or other fixed assets owned by the company;

  • Details on pending or ended litigation in which the company was/is involved;

  • Information on monthly payroll obligations including the total number of employees and explanation of their function;

  • List of vendors and, suppliers;

  • Information on current customers or customer list including an accounts receivable report;

  • Details on benefit plans and related costs including future obligations;

  • List of all business advisors including attorney, accountant and consultants with information on retainer or other agreements.

Contact Us

There are many documents needed to conduct a valuation. Depending on the type of company being assessed additional information may be needed. If you are considering a business valuation for whatever reason, Hanson & Co, wants to help! For additional information please call us at (303) 388-1010, or click here to contact us. We look forward to speaking with you soon.