Micah Vant Hoff

CPA, CVA | CK Principal

Whether expected or unforeseen, the need for a business valuation can happen in a number of scenarios, each unique to your business. Perhaps you’re preparing to exit and pass the torch to the next generation, or maybe you’re seeking financing for your next big venture. A valuation may be needed for gifting or estate planning purposes, or to evaluate a potential buyout offer. Whatever the reason, Cray Kaiser is here to provide the precise valuation you need to make informed decisions.

Gathering and preparing key information and documentation is crucial to ensuring a smooth and efficient valuation process. While every situation is different and may require additional details, we have provided some of the basics that may be requested by Cray Kaiser to complete a business valuation.

Financial Statements

The backbone of any business valuation is the business’s financial health, which is primarily assessed through detailed financial reporting. This includes:

• Annual Financial Statements
• Financial Projections
• Detailed reporting on specific areas such as composition of revenues, fixed assets, and others

If you need what we call an “accounting catch-up,” we offer a one-time onboarding service to ensure you have up-to-date, accurate financial data.

Tax Returns

Obtaining your business tax returns for the past three to five years helps us further understand your tax obligations and adjustments that may need to be made for the valuation.

Organizational Documents

Key organizational documents provide context and structure for your business operations, as well as spelling out the rights and restrictions applicable to the ownership interest being valued . These may include:

• Articles of Incorporation/Organization
• Operating Agreements or Bylaws
• Shareholder or Partnership Agreements

Industry Information

Understanding the broader context in which your business operates is essential. You may be asked to provide any relevant industry reports, trade publications or trade association resources, market analyses, and competitive benchmarking data.

Legal Documents and Contracts

Any legal documents that could affect your business’s value will be requested, including:

• Lease Agreements
• Significant Contracts with Customers and Suppliers
• Litigation Documents
• Organizational Chart
• Employment Contracts

Historical Data and Anecdotal Information

Historical context and anecdotal insights can provide valuable background for your valuation. In developing a conclusion of the value of your business, we gain an understanding of the history of your company, notable events, growth milestones, or challenges that have shaped your business. We will also work closely with you to assess the company’s strengths, competitive advantages, and position in the marketplace, as well as any threats and risks affecting the company.

Educating and Empowering You Through the Process

The documents listed above are just the starting point for a business valuation. Because your business is unique, additional documentation will likely be needed to capture its full value. At Cray Kaiser, every business valuation begins with a thorough discussion to understand your specific reasons and goals. From there, we’ll provide a tailored list of all required documentation to ensure an accurate and comprehensive valuation.

We recognize that each situation comes with its own complexities, and we’re here to guide you through the process. If you’re ready to take the next step, contact Cray Kaiser today to begin your business valuation journey.