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 calculation is the key to an accurate business valuation. Our Income Statement Adjustment Report identifies qualified add-backs along with proper supporting documentation that traces those expenses back to the financial statements being used in a cash flow 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). (Identified cash flow can be utilized in the valuation report).
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 Exit Planning.
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, which helps you identify the required working capital needs for a proposed post-close deal structure using the last three years and a trailing twelve-month period 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.
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.