Step 1: Initial Consultation and Engagement

The valuation process begins with an initial consultation where the valuator and client discuss the purpose of the valuation, the standard of value required, the valuation date, and the scope of work. After this discussion, the valuator prepares a formal engagement letter outlining the terms, fees, timeline, and deliverables. Once the engagement letter is signed, the document collection process begins. At Corporate Valuations Inc., the initial consultation is provided at no charge.

Step 2: Document Collection and Review

The valuator provides a document request list and works with the client and their advisors to gather the necessary financial, legal, and operational information. This phase typically takes one to three weeks depending on the availability of records. The valuator reviews all documents to understand the business, identify any adjustments needed to normalize financial statements, and flag any areas requiring additional information or clarification.

Step 3: Management Interview and Site Visit

Most valuations include a detailed management interview where the valuator discusses the company’s history, operations, competitive position, growth prospects, risks, and industry dynamics with the business owner or management team. A site visit may also be conducted to observe operations firsthand. These conversations provide critical qualitative context that cannot be obtained from financial documents alone.

Step 4: Analysis and Valuation

The valuator performs detailed financial analysis including normalizing adjustments to historical financial statements, ratio analysis, trend analysis, and benchmarking against industry data. The valuator then applies one or more valuation approaches — the income approach (typically discounted cash flow or capitalization of earnings), the market approach (comparable company or precedent transaction analysis), and/or the asset approach — depending on which are most relevant to the subject company. Appropriate valuation discounts or premiums are applied based on the interest being valued.

Step 5: Report Preparation and Delivery

The valuator prepares a comprehensive written report documenting the analysis, methodologies, assumptions, and conclusion of value. The report is reviewed internally for quality assurance before delivery to the client. After delivery, the valuator is available to discuss the findings, answer questions, and make any necessary revisions. The entire process from engagement to delivery typically takes four to eight weeks, though expedited timelines are available for urgent needs.

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