1. Letter Report
This is a statement which presents a single estimate of value for the business based on three years of financial data. It is approximately two to three pages in length. A community market analysis including a formal site visit is optional, but not common with a Letter Report.
2. EBIDT Report
(Earnings Before Interest, Depreciation, & Taxes)
This is often recommended as a first step toward the contemplated sale or purchase of a business. Through a specialized income or investment value approach, the Report specifically determines a sale or purchase price that we deem fair and reasonable for the business, and typically includes the real estate. This approach uses a firm’s earnings as the basis for establishing its value. The general principal is based on income analyzed according to the dividend-paying or “earning” potential of the revenue of the business. An EBIDT Report is typically based on three years of financial data. It includes a discussion of the overall desirability of the firm, as well as a service-by-service contract analysis. In addition, we include relevant demographic information and recommendations to assist in a sale or purchase, such as financial changes necessary or advantageous for new management or ownership.
3. Abbreviated Appraisal
This Report is a narrative appraisal using at least two methods of evaluation based on three years of financial data. It often is used for internal purposes or as an update of a previous appraisal. A community market analysis including a formal site visit is optional.
4. Regular Appraisal
At least three methods of evaluation based on five years of financial data are used in this comprehensive narrative appraisal. The text describes the steps used to derive the various estimates of value and explains the financial tables which analyze the business. A Regular Appraisal includes a discussion of the business operation, comments and suggestions about the various elements of business worth, and recommendations to assist in decision-making. A community market analysis including a formal site visit is common with this Report.
5. Expanded Appraisal
This extensive narrative appraisal utilizes at least five methods of evaluation based on five years of data. It includes all of the items in a Regular Appraisal Report, as well as extra explanatory discussion, including Return on Investment (ROI) and Price Earnings. Additionally, it offers an in-depth discussion of the methodological procedures, their application, use and meaning, and a justification of the various appraisal techniques utilized. A community market analysis including a formal site visit is usually required with an Expanded Appraisal.
6. Litigation Appraisal
This Report goes beyond the scope of the Expanded Appraisal, addressing the specific requirements of the case. An Appraisal Report that involves litigation or potential judicial action requires a community market analysis including a formal site visit.
All of our six types of Appraisal Reports may discuss the firm’s real estate. In most cases, we carry out an imputed real estate appraisal which we base on an income approach. However, for some circumstances, it may be advisable to procure a real estate appraisal from a qualified local real estate appraiser. If this is the circumstance, we will notify you.
Our business appraisals can be prepared to cover a specific time-frame often required for legal purposes such as the settlement of an estate, an audit, or lender requirement.