Sample Business Valuation Report - ValuAdder

Certified Business Appraisals, LLC

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Business Valuation Report

Prepared for:

John Doe

Client Business, Inc.

1 Market Way

Your Town, CA

February 1, 2024

1 Market Street Suite 100 Anytown, CA 95401

Web: | Tel 1-999-BUS-NESS | Email appraisals@

Created by ValuAdder? Report Builder. Copyright ? 2024 Haleo Corporation. All rights reserved.

Table of Contents

Description of the Appraisal Assignment ............................ 6

Standard and Premise of Value ........................................... 6

Scope of the Report ............................................................. 6

Information Sources ........................................................... 7

Business Description ........................................................... 8

Industry Overview .............................................................. 9

Financial Statement Reconstruction and Forecasts .......... 10

Business Valuation Approaches and Methods ................... 16

Asset-Based Business Valuation Results .......................... 18

Market-Based Business Valuation Results ........................ 21

Income-Based Business Valuation Results ....................... 25

Conclusion of Business Value ............................................ 29

Business Value and Selling Price Considerations .............. 30

Business Price Justification ............................................... 32

Statement of Limiting Conditions...................................... 35

Appraiser Credentials and Certification ............................ 37

List of Abbreviations ......................................................... 39

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List of Tables

Table 1. Income Statement Reconstruction ......................... 12

Table 2. Income and Expense Forecast .............................. 13

Table 3. Balance Sheet Reconstruction ............................... 14

Table 4. Additional Balance Sheet Related Items ................. 15

Table 5. Equity Discount Rate Build Up .............................. 19

Table 6. Business Valuation Multiples ................................. 22

Table 7. Business Value Estimation using Multiples .............. 23

Table 8. Business value estimation using Rules of Thumb ..... 24

Table 9. Seller's Discretionary Cash Flow calculation ............ 26

Table 10. Business Valuation Factors selection .................... 27

Table 11. Conclusion of Business Value .............................. 29

Table 12. Business Sale assumptions ................................. 33

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John Doe

Client Business, Inc.

1 Market Way

Your Town, CA

February 1, 2024

Re: Appraisal of Client Business, Inc.

Dear Mr. Doe,

We have been engaged to estimate the fair market value of the

business enterprise known as Client Business, Inc. as of February

1, 2024 for the purpose of offering the subject business for sale.

At your request, rather than preparing a self contained

comprehensive report, we have provided a restricted appraisal

report, which is advisory in nature and intended to be used for

offering the subject business for sale . Please refer to the

statement of limiting conditions contained in the report.

For the purposes of business appraisal, fair market value is

defined as the expected price at which the subject business would

change hands between a willing buyer and a willing seller, neither

being under a compulsion to conclude the transaction and both

having full knowledge of all the relevant facts.

We have appraised a fully marketable, controlling ownership

interest in the assets of the subject business. The appraisal was

performed under the premise of value in continued use as a going

concern business enterprise. In our opinion this premise of value

represents the highest and best use of the subject business assets.

Based on the information contained in the report that follows, it is

our estimate that the fair market value of Client Business, Inc. is:

Business Enterprise Value: $1,191,702

The Business Enterprise Value includes inventory, furniture,

fixtures and equipment, and all intangible assets, including

business goodwill. It excludes cash, or cash equivalents, accounts

receivable, real estate, non-operating assets and all business

liabilities. The valuation is subject to the inform ation provided to

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us as well as the assumptions and financial data which appear in

the report.

We have no obligation to update this report or our conclusion of

value for information that comes to our attention after the date of

this report.

We have appraised the subject business in accordance with the

Uniform Standards of Professional Appraisal Practice (USPAP) as

promulgated by the Appraisal Foundation and the International

Valuation Standards (IVS) published by the International Valuation

Standards Council.

This business appraisal follows the requirements of a valuation

engagement, as that term is defined in the American Institute of

Certified Public Accountants Statement on Standards for Valuation

Services No. 1 (SSVS No. 1).

Sincerely,

Jane Analyst, Senior Valuation Analyst, ASA, CBA, MBA

Partner, Certified Business Appraisals, LLC

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Copyright ? 2024 Haleo Corporation. All rights reserved.

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