HbK Valuation Group, LLC has prepared numerous valuation services for clients ranging from sole proprietorships to large privately held companies. We can prepare an independent, reliable and a well balanced valuation analysis and report for a wide variety of reasons including:
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Typical Valuation Procedure
Our professionals follow certain set procedures to ensure a comprehensive and well-supported analysis to support our estimate of value. Each valuation engagement is unique and is based on the business or ownership interest being valued. The valuation procedure we adopt for a particular engagement depends on the purpose of the valuation and the financial/operating characteristics of the company involved. Generally, the following steps are involved.
- Contact with the client or their advisors to discuss the purpose of the valuation, interest to be valued, standard of value, valuation date to be used, project deadlines and preliminary company/industry description and basic financial information.
- Submission of an engagement letter that describes the services that we will provide, the fee for the assignment and the deadline by which final valuation reports will be submitted.
- If engaged by the client, we will prepare an information request list that is specific to the company being valued, the industry it operates in, and our review of the preliminary financial information provided.
- On receipt of the requested information, we will review and analyze the information and start our preliminary analysis and reporting.
- Next, we will schedule a management interview either by telephone or a company visit, wherein we will discuss with key personnel, the company, products and services, the firm’s recent history and development, industry-specific factors/competitive environment, earnings and cash flow prospects and expectations, underlying asset values, business/financial risks and key employee profiles.
- Based on our selection of appropriate valuation approaches, discounts or premiums applied and reconciliation of values indicated by various methods, we will prepare a detailed analysis and preliminary valuation draft report. On further discussion with the client, and after any additional revisions, we will issue a final, bound valuation report.
- We work closely with our clients to ensure our valuation reports are fully understood and will be responsive to their needs for any further discussion or additional services even several years after an initial engagement.
Types of Valuation Reports
- Full or Comprehensive Report – As the name suggests, these reports present an opinion of value of the business or ownership interest and is supported by all extensive research, analysis and documentation.
- Calculation Report – The purpose of this report is to derive an approximate indication of value based on limited information and analytical procedures as agreed upon by the client and us.
- Fairness Opinions – A fairness opinion is a professional evaluation by us as to whether the terms of a merger, acquisition, buyback or spin-off are fair. The fairness opinion does not include an opinion of value, but only an opinion as to whether we believe that the offer received by the company is fair for its shareholders from a financial perspective. In this analysis, we will evaluate the total consideration being offered, the company’s past history and outlook, the prices at which similar businesses have sold and any additional investment characteristics of the company. We will then issue a fairness opinion letter stating whether or not the transaction is fair to the minority shareholders of the company.
- Critique of Another Appraiser’s Report – We can review and rebut a valuation report prepared by another appraiser. As such, this service does not include us rendering an opinion of value of the business or interest being valued.
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