Business Valuation

Business Valuation 2024

Trak business valuations are performed by CPAs who have completed hundreds of certified business valuations. Our team enjoys working with our clients, getting to know their businesses, building relationships, and scrutinizing financial information to provide arguably the best business valuation services in the valuation industry. The end result is a solid business valuation at a reasonable price.

We have access to data for all industries, so we can value a company in any industry.

Even though we can perform a valuation in a week with all-hands-on-deck, we normally perform valuations in 3 weeks.

We perform valuations for nearly every situation: buying a business, selling your company, M&A, buy-sell agreements, partner separation, succession planning, divorce, tax issues, estates, financing, ESOPs, ROI analysis, acquisition price allocations, and more…

When our clients need to compare our valuation report to our competitors, we provide the similar or superior report.

What is your business worth?

Have an existing business and want to know what it is worth? Smart! We recommend business owners know the value of their business. Once you know the value of your company, our consultants or your financial advisor can then help you grow it the best way.

Looking to sell with a broker? Good idea, just don't rely on a Broker Opinion to value the company. Instead, rely on a standards-based Business Valuation that is accurate. Top-notch business brokers do not sell a business without a Business Valuation.

Business Valuation Report

Our business valuation reports are accurate, professional and understandable. We tailor the report to your company and needs. Once the valuation process is complete, we walk you through the report. It is important that you get exactly what you want out of your report. We help you withstand any scrutiny.

Our valuations meet IRS, SBA, and USPAP requirements. The valuations are prepared in accordance with the “Statement of Standards for Valuation Services No. 1” (SSVS) of the American Institute of Certified Public Accountants and Uniform Standards of Professional Business Valuation Appraisal Practice (USPAP).

Know Thyself, Accurately

Example Report Contents

1-10: Intro | Scope | Company Overview
11-41: Economic & Industry Reports
42-52: Financials: Historical | Normalized | 5-Year Projection
53-55: Valuation Approach Overview
56-60: Risk Components
61-74: Business Valuation Methodologies (9)
73-84: Conclusion of Value | Discounts | Gut-Checks
85-90: Concluding Items

Valuation Special Features

Professional Market Data compared to BizBuySell analysis
5-Year Projected Financials
Industry & Economic Reports
9 Business Valuation methods: 2 asset, 3 market, and 4 income
Discount calculations (marketability discount & minority interest discount)
Tailored multiples & risk factors, not from a book
"Gut Checks" - Does the valuation amount make sense?

Guarantee

We guarantee this valuation for 2 years from the valuation report date. This means we make any necessary adjustments to the valuation for its time period. We also back our valuation for this time period, meaning we meet with interested parties concerning the valuation for up to 2 years.

We simplify the complex valuation process

Business Valuation Process

Part I: Research and Analysis

Interview management, reviewing business and financial operations.
Document the interview(s) for business valuation purposes.
Compile business documents. We request all the pertinent documentation we need for the valuation: up to 5 years of tax returns and other financial documents such as P&Ls, balance sheets, AR aging report, AP aging report, customer revenues by percentage of revenues over 3 years, Operating/Partnership Agreement, asset listing (depreciation schedule), and building lease copy.
Review and synthesize business information.
Research and analyze the industry and market in which the business operates, obtaining significant relevant industry data that will be included in the final report, providing industry risk profile for valuation calculations.
Determine NAICS code for industry report and industry comparables.
Study and document economic conditions as of the valuation date.
Analyze company financial data:

Up to 5 years of financial records detail
Analyze and reformat financial information
Ask financial-related questions
Analyze business financial condition, performance and trends
Calculate and examine relevant financial and/or operating ratios
Compare financial performance to the industry
Normalize financial data to provide the proper basis for valuation

Part II: Client Questions and Review

Ask detail questions to client regarding operations, outlook, market environment, financials, adjustments and assumptions.
Review the financials, industry report selection, adjustments and assumptions with the client.
Make any adjustments as needed, then review until client is satisfied with financials and adjustments. Many times this is done via multiple emails, but it may be a virtual meeting as well.

Part III: Business Valuation Service Method Analysis and Calculations

(1) Market Approach. Under the Market Approach to business valuation, we consult the marketplace for indications of business value. We generally use the private company sales data, but use publicly traded sales data when needed. Our team selects companies which resemble the subject business in terms of their financial and operational characteristics. The team then statistically analyzes and calculates appropriate market multiples: price/earnings, price/revenue, price/book value, etc. We also show you how you stack up to the thousands of businesses sold each year on the BizBuySell.com website.

(2) Asset Approach. The asset approach to business valuation considers the underlying business assets in order to estimate the value of the overall business enterprise. The business valuation methods under the Asset Approach include:

(3) Income Approach. The methods under the Income Approach include:

Part IV: Produce and Deliver the Valuation Report

Write an understandable report in the agreed-upon format. A full report presents relevant facts, explains the analysis and procedures used, and provides supporting evidence for conclusions.
Review, proof-read and finalize the report.
Upon final payment, set up a meeting to go over the report virtually with Client and other interested parties of Client choosing.
Deliver the final report to Client, in a professional PDF format.

Our Locations

Bay Area | Orange County | LA

21771 Stevens Creek Blvd #100, Cupertino CA 95014

Business Valuation Colorado

20969 Woodside Ln Parker CO 80138

Business Valuation Florida

1781 Bridgewater Dr Melbourne FL 32934

Business Valuation Philadelphia

1930 Nester St Philadelphia PA 19115

Business Valuation Arizona

Phoenix Business Valuation Office: We are expanding!

Business Valuation Utah

10889 N Panorama Dr Highland UT 84003