> When do you need a business valuation consultant?
> What are the steps taken during a typical business valuation?
> Is a “full-blown” business appraisal always necessary?
> How much will it cost?

When do you need a business valuation consultant?

You may be faced with any one of the following situations in which an independent business valuation, performed by industry experts, is critical to achieving your business or personal objectives:

• You are considering selling your architecture, engineering, or environmental consulting business.
• You are considering buying or merging with another firm.
• You are required to obtain an independent valuation under FASB accounting rules for acquisitions and treatment of goodwill (FAS 142).
• You are involved in ownership transition planning and implementation.
• You are required to annually appraise stock in your firm’s employee stock ownership plan (ESOP).
• You need to establish the value of your firm’s stock for gift and estate tax purposes.
• You are a stockholder involved in a divorce, partnership dissolution, or other litigation matter.
• You are involved with the planning and implementation of a shareholders (buy/sell) agreement.
• You need to establish defendable values for covenants not to compete.
• You are establishing a stock appreciation rights plan and need either a valuation or to design a stock formula.
• You are converting from a C-corporation to an S-corporation and need to establish the firm’s value at the time of the election.

What are the steps taken during a typical business valuation?

The steps taken by ZweigWhite for a complete appraisal generally are as follows:

• Establish the purpose of the valuation and ensure that all client expectations are thoroughly understood.
• Review and analyze the most recent 3-5 years of financial information.
• Visit your firm’s offices to interview owners and key personnel.
• Research the current economic and industry trends.
• Research our in-house mergers and acquisitions database of design and construction firm sale transactions.
• Construct financial earnings models that accurately reflect the firm’s current and future operations.
• Develop public company market analysis as appropriate.
• Compare the results of the various valuation methodologies and determine the most appropriate value.
• Benchmark values against the annual ZweigWhite Valuation Survey.
• Review the draft appraisal report with the client to ensure the accuracy of the approaches and assumptions chosen.
• Issue the final results in the format suitable for the valuation purpose.
• If required, provide expert testimony to support an appraisal in court.
  

Is a “full-blown” business appraisal always necessary?

No. ZweigWhite also provides other business valuation services for firms that do not require a full business appraisal prepared in accordance with all applicable professional and Internal Revenue Service standards.

These services include:

• Fairness opinions to support Board of Director fiduciary needs for acquisitions.
• Executive level valuation studies based on a desk review of a company’s financial records and interviews of the firm’s principals.
• Desktop reviews of appraisals prepared by other consultants.

How much will it cost?

Business valuation services are usually billed by ZweigWhite on a fixed fee plus expenses basis. Fees are greatly dependent on the size and complexity of the company being appraised, the purpose for the appraisal, the quality of available financial information, and the level of analysis necessary for the client.

If you are interested in business appraisal services, please contact any of our expert consultants. Once we have an understanding of the purpose of the appraisal and the nature of your company, we can suggest the most appropriate level of appraisal report and provide you with a written proposal detailing the process, timing and costs.

Valuation & Ownership Planning Services Home

Email a consultant
Contact a consultant via web form
Call 1-800-466-6275