Business Valuation Process

By KW Economics Editorial Team · Updated

A business valuation engagement moves through 5 steps, from the conflict check to testimony. Each step ends in something counsel can review, and the typical timeline shows how long each phase runs.

Engagement process

  1. Retention and conflict check: We confirm conflicts, identify the interest to be valued, the valuation date, the standard of value, and the purpose, establish the retainer, and set the deadline.
  2. Records and data request: We request historical financial statements, tax returns, general ledger detail, ownership and governance documents, budgets and forecasts, and any prior valuations or buy-sell agreements.
  3. Analysis and modeling: We normalize the financial statements, analyze the industry and economic conditions at the valuation date, apply the income, market, and asset approaches as appropriate, reconcile the indications of value, and support any discounts applied.
  4. Draft report and counsel review: We deliver a draft that documents the approaches, inputs, and reconciliation, and review it with counsel for factual accuracy before finalizing.
  5. Final report and testimony support: We issue the final report and provide deposition and trial testimony and critique of opposing valuation reports.

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References

Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.