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Business Valuation example agreement
A JPAbusiness Business Valuation provides:
- Detailed evaluation of business and financial performance
- Competitive position versus others and industry dynamics
- Sworn valuation, for various purposes depending on scope of valuation, including:
- Mortgage security purposes
- Business exit, business sale
- Family and business succession
- Stamp duty and structuring purposes
- Family Court proceedings
- Comparable sales, multiple of earnings, discounted cash flow and return on investment assessments (depending on specific scope and business attributes)
- Specific valuation and detailed report, plus related decision-support recommendations (as per the valuation scope).
If you choose to engage JPAbusiness to conduct a Business Valuation on your behalf, we will outline the scope of services to be provided in a Market Valuation Report engagement agreement.
Below is an example of a JPAbusiness Market Valuation Report engagement agreement:
|Project||Business Advisory Services: Market Valuation Report|
To provide Client A with a Market Valuation Report on Business A, with decision support information on the potential range of interest, the fair market value, recommendations on marketing strategies and asking prices, and likely probabilities of success if Business A was offered for full and/or part sale in the context of the shareholders’ exit plans.
Risks and opportunities that are relevant to consider in moving to selling Business A will also be included.
Provision of a Market Valuation Report on Business A and associated assets.
The report will include an assessment of the fair market value of the entire business.
Methodology will include, but not be limited to:
- market cap rate analysis
- comparable sales
- discounted cash flow
- net tangible assets analysis.
Analysis and considerations undertaken during the Market Valuation Report assessment will cover:
- projected, current and historical financial performance of Business A
- suppliers and sourcing relationships
- inventory and product lines
- customers, agents network, contracts and agreements
- opportunities, intellectual property and work in progress
- plant and equipment
- international networks and goodwill associated with the business and the brand(s)
- potential market comparisons and possible target interested parties.
The project will run for approximately four weeks from commencement of this engagement.
Interested in seeking a valuation or market appraisal?
If you are considering buying or selling a business, consider appointing an advisor to provide you with a market appraisal or business valuation. Make sure the person advising you can provide comparable and up-to-date information on similar businesses and what sale prices they have achieved.
Contact JPAbusiness for an obligation-free consultation today.