Defining the Scope:
Engagements begin with an initial meeting to discuss your situation and valuation needs. After understanding the issues and discussing alternatives, a proposal is developed to outline the scope of the project.
After the scope of work is determined, we will supply you with a list of required documents that will be necessary to collect in order to compile needed financial data. Historical financial statements, tax returns, customer lists, and other information is gathered by the client and delivered to the Valuation & Forensic Partners team.
After the requested financial information is delivered, it will be input into financial models in order to conduct preliminary analysis on the company’s historical earnings and cash flow. Additionally, industry analysis is started.
We will conduct a phone interview or a site visit with key management in order to discuss past and future company trends and to understand company strategies and operations.
Additional Data Collection and Valuation Analysis:
Information from the meeting and additional financial, customer, and industry analysis is compiled. Financial projections and/or normalizations are developed and company risk is assessed.
Client Review and Management Representation Letter:
The company, industry, financial analysis and normalization adjustments are reviewed by the client and/or by company management. This allows for agreement on the underlying information that supports the key valuation drivers and decisions and serves as a sanity check against key assumptions.
Finish Report and Client Review:
Based on the review meeting, the draft valuation report is completed and reviewed with the client and their advisors.
The valuation report is finalized, signed, and issued.