What Information is Needed to Perform the Valuation?

Initially, we will need to review the financial statements of the company to gain insight into the operations, formulate a plan for the valuation and prepare an engagement letter. For a family limited partnership, it is beneficial for us to review a schedule of assets and liabilities and the partnership agreement prior to preparing the engagement letter. For promissory notes, we will need to review a copy of the note. Once engaged, we will generally request that you send us copies of the following items (emailed PDF copies is preferred if possible):

For Operating Companies

  • Five years of financial statements or tax returns.

  • The organizational documents of the entity (Articles of Incorporation, Bylaws, membership agreement, etc.).

  • A schedule of ownership as of the valuation date.

  • A copy of any budgets or projected financial statements that have been prepared.

  • A schedule reflecting the base salary, bonuses and any other compensation
    paid to the owners of the company for each of the last five years.

  • A schedule of any nonoperating assets owned by the Company and any
    nonrecurring income and expenses incurred over the past five years.

  • A schedule reflecting any concentration in customers or suppliers in the most recent year.

For Family Limited Partnerships

  • A copy of the limited partnership agreement.

  • A schedule of the assets and liabilities as of the valuation date.

  • Tax returns for the past five years.

  • A schedule of ownership as of the valuation date.

  • The market value of any real estate, equipment, livestock or mineral interests owned by the partnership.

  • Brokerage statements reflecting the market value (as of the valuation date)
    of any marketable securities held by the partnership.

For Promissory Notes

  • A copy of the promissory note reflecting the interest rate and repayment terms.

  • The outstanding balance of the note as of the valuation date.

  • An amortization schedule, if available.

  • Information on the collateral securing the note, if any.

Typically, we will make a site visit and interview management to discuss the financial statements and the historical and projected operations of the company. If you have any questions, please call us to discuss the business and we can usually provide a verbal estimate of the cost and time frame to complete the valuation.