Business Valuations
What is a business valuation?
A business valuation is a result of determining the monetary worth of a business, using objective metrics and other value identifiers.
What kind of valuation is right for me?
Complete Appraisal
The most thorough presentation of a business valuation, a Complete Appraisal, looks at every aspect of the business and documents the methodology and assumptions used to arrive at the value conclusion. This level of valuation comes with significant depth and detail. If you need an appraisal as part of litigation or other circumstances in which the valuation would be challenged, the Complete Appraisal is right for you.
Complete Appraisal Summary (Summary Appraisal)
If you’re looking for a valuation that gives you the big picture, the Summary Appraisal is right for you. To complete this appraisal, we conduct the same investigation and analysis of your business assets that we do in a Complete Appraisal. Then, we deliver a summary of the most important information so that you don’t get caught up in the details.
Business Appraisal (Restricted Use)
This is a USPAP Restricted Use Appraisal report designed specifically for when the intended user(s) are not sharing the report with outside parties. This report should be considered for those transactions involving the sale of 100% of the company and is formatted to be SBA compliant which only requires a minimal update (by the lender) when used as part of an SBA Loan.
Calculation of Value
Depending on the purpose of your valuation, a basic understanding of the business assets may be enough for the task at hand. Also known as, “value calculations,” a Calculation of Value is NOT an appraisal, but a calculation based on a limited amount of investigation and diligence. Usually, these reports are used for management planning or other less-formal purposes.
Appraisal Review
If you’ve already received a valuation and you’re looking for a second opinion, you’re looking for an Appraisal Review. This review offers commentary and any critique on an appraisal previously prepared.
Additional Services
Income Statement Adjustment (Add-Back)Tracing
Cash flow is one of the primary drivers in determining the value of a business, therefore proper support for your cash flow adjustments is the key to an accurate business valuation. Our Income Statement Adjustment Report identifies qualified add-backs supported with proper documentation that traces those expenses back to the financial statements being used in the analysis. Additionally, the report will calculate the total cash flow for both Seller’s Discretionary Cash Flow (SDE) and Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA).
This service is a great tool to Strengthen Credit Memorandums, Lender Underwriting Packages or to help M&A Advisors, Business Appraisers, and Business Owners calculate supportable cash flow as part of prospective sale or acquisition.
Working Capital Analysis
Our staff of appraisers and financial professionals will analyze your financial statements and develop the specific monthly working capital needs of the Company for a proposed post-close deal structure using the last three years and a trailing twelve-month as a baseline. Our staff will look for and identify large fluctuations in the company’s history, as well as monthly operating cash flow needs. Our final analysis will report our findings along with working capital averages compared to the subject company’s industry.
This service is a great tool that can be used by BDOs, Credit Analysts, and Bank Underwriters to mitigate credit risks and better understand the true needs of their client’s liquidity in order to help them better structure new or existing revolving lines of credit.
When would I need a business valuation?
Whether you are a small business owner or someone who serves small business owners, there will come a time when you’ll need to know the value of a business to guide key decisions.
Here are our top 8 scenarios in which you’ll need a valuation:
- SBA Lending
- Listing a Business for Sale
- Business Planning
- ESOP
- Gift Tax / Estate Tax
- Corporation Tax Filing Status
- Partner Buy-Outs / Disputes
- Marital Dissolution
For more information about why you may need an appraisal, read our blog.
Learn more about business valuations:
Download our free guide: How to Navigate the Business Valuation Process Successfully
Read: Why & When You Need a Business Valuation
Read: Different Types of Business Valuations
Start the Process
Are you ready to learn more about the value of your business? Contact us to get started.
Business Valuation Accreditation
Your GCF Business Valuation appraisal team has one or more of the following accreditations:
Accredited Senior Appraiser (ASA) – is recognized as having achieved the highest level of education, training, and report writing for business valuations. The ASA designation is the gold standard for a business valuation professional. (source: American Society of Appraisers)
Certified Business Appraiser (CBA) – a very prestigious credential in the eyes of all who are familiar with it as it earned the reputation of being a difficult credential to obtain. (source: National Association of Certified Valuators and Analysts®)
Certified Valuation Analyst (CVA)
Accredited in Business Valuation by the American Institute of CPAs (ABV by AICPA) – a credential granted exclusively by the AICPA to qualified valuation professionals who demonstrate expertise in valuation through knowledge, skill, experience, and adherence to professional standards. (source: American Institute of CPAs)- Accredited in Business Valuation (ABV) – credential is granted exclusively by the AICPA to CPAs and qualified valuation professionals who demonstrate considerable expertise in valuation through their knowledge, skill, experience, and adherence to professional standards. (source: American Institute of CPAs)
- Certified Public Accountant (CPA)
Over 25 years of experience and expertise in business valuations and appraisals. An accredited appraiser receives extensive training, remains in good standing, and follows specific industry practices to determine the value of a business.
GCF’s Machinery and Equipment Appraisal Accreditations
Expert Equipment Certified Appraiser (EECA) – Our appraisers are recognized with a deep understanding of valuation principles and extensive experience by the Institute of Equipment Valuation.
- Certified Machinery and Equipment Appraiser (CMEA) – a CMEA professional has the expertise and certification to conduct a third party machinery and equipment appraisal.
The GCF Business Valuation Process
