Sample of Business Valuation Report
Certified Business Appraisals, LLC
Business Valuation Report
Prepared for: John Doe Client Business, Inc.
1 Market Way Your Town, CA
July 25, 2010
1 Market Street Suite 100 Anytown, CA 95401 Web: www.yourdomain.com | Tel 1-999-BUS-NESS | Email appraisals@yourdomain.com
Table of Contents
Description of the Appraisal Assignment............................ 6 Standard and Premise of Value .......................................... 6 Scope of the Report ............................................................ 6 Information Sources........................................................... 7 Business Description .......................................................... 8 Industry Overview .............................................................. 9 Financial Statement Reconstruction and Forecasts .......... 10 Business Valuation Approaches and Methods .................. 16 Asset-Based Business Valuation Results .......................... 18 Market-Based Business Valuation Results........................ 20 Income-Based Business Valuation Results....................... 24 Conclusion of Business Value ........................................... 27 Business Value and Selling Price Considerations ............. 28 Business Price Justification .............................................. 30 Statement of Limiting Conditions ..................................... 33 Appraiser Credentials and Certification ............................ 35 List of Abbreviations ......................................................... 36
2
List of Tables Table 1. Income Statement Reconstruction ........................12 Table 2. Income and Expense Forecast ..............................13 Table 3. Balance Sheet Reconstruction ..............................14 Table 4. Additional Balance Sheet Related Items .................15 Table 5. Equity Discount Rate Build Up ..............................19 Table 6. Business Valuation Multiples
Business Valuation Report
Prepared for: John Doe Client Business, Inc.
1 Market Way Your Town, CA
July 25, 2010
1 Market Street Suite 100 Anytown, CA 95401 Web: www.yourdomain.com | Tel 1-999-BUS-NESS | Email appraisals@yourdomain.com
Table of Contents
Description of the Appraisal Assignment............................ 6 Standard and Premise of Value .......................................... 6 Scope of the Report ............................................................ 6 Information Sources........................................................... 7 Business Description .......................................................... 8 Industry Overview .............................................................. 9 Financial Statement Reconstruction and Forecasts .......... 10 Business Valuation Approaches and Methods .................. 16 Asset-Based Business Valuation Results .......................... 18 Market-Based Business Valuation Results........................ 20 Income-Based Business Valuation Results....................... 24 Conclusion of Business Value ........................................... 27 Business Value and Selling Price Considerations ............. 28 Business Price Justification .............................................. 30 Statement of Limiting Conditions ..................................... 33 Appraiser Credentials and Certification ............................ 35 List of Abbreviations ......................................................... 36
2
List of Tables Table 1. Income Statement Reconstruction ........................12 Table 2. Income and Expense Forecast ..............................13 Table 3. Balance Sheet Reconstruction ..............................14 Table 4. Additional Balance Sheet Related Items .................15 Table 5. Equity Discount Rate Build Up ..............................19 Table 6. Business Valuation Multiples