The Business Valuation Process
What are the 7 Steps to a Valuation Report?
Our commitment is to make the valuation process as enjoyable as possible for you. Here are the 7 easy steps to complete a valuation report for your business.
1. Quotation
We require the most recent three (3) years of financial statements in order to provide you with a quote. Please also advise the purpose of the valuation. Virtual meetings and phone calls can be arranged to further clarify your requirements and our services.
2. Engagement Letter
After we review the above, we will present you with an engagement letter which outlines the terms of the engagement. Upon signing the engagement letter, a retainer is due, which will be applied against the final invoice.
3. Disclosure Request List
We require certain documents from you to complete the valuation. The length of our disclosure request list will depend on the mandate. You can find a sample disclosure request list here.
4. Valuation
This is where our team of experts crunch the numbers and research the industry. We may request additional documents/information from you as we discover more about your business. This process typically takes 2 to 4 weeks.
5. Draft Report & Discussion
Upon the completion of our analysis, we will issue you a draft report for your review and discussion. Although it is called a draft, all the required work has gone into the report. This is where we fine-tune the report, should you unearth additional factors that influence the value.
6. Representation Letter & Invoice
After your review of the draft report, we will send you a client representation letter for signature, which essentially states that you have provided us with information that is truthful and accurate. Payment on the invoice less the retainer paid is due at this point.
7. Final Report
Voilà! Our office will issue you the final report, which is signed by the CBV. The valuation report will be issued in accordance with the CICBV guidelines, meaning it is recognized by various Canadian entities and professionals, including the legal system, the CRA, institutional investors, and many others.