How to Prep for a Business Valuation
Business valuations might seem daunting, but the process is straightforward when broken down into simple steps. In this blog post, we will guide you through the process of ordering a business valuation and outline the key pieces of information you'll need to gather.
Before diving in, make sure to check out our Definitive Guide to Business Valuation Reports for a comprehensive overview of what to expect and how to maximize your business's value.
Ordering a Business Valuation
Getting started with your business valuation is simple. Visit BizWorth and click the green "Get Started" button. From there, you'll see several options—ensure that you select the option for business valuation. You will then answer a few questions to help us recommend the right report for you. It's that easy.
When you check out, be prepared to make a payment. This grants you access to our secure portal, where you can upload your confidential information safely.
For more detailed steps, our Definitive Guide to Business Valuation Reports offers a deeper dive into the entire process, ensuring you're fully prepared.
Information You Need
For an informational valuation, such as our essential or standards valuation report—perfect for buying or selling a business or for strategic planning—you’ll need to provide certain data. This involves valuing 100% of the business. Here's what you'll need to prepare:
- Three Years of Financial Data: You can choose to supply either your business tax returns or financial statements for the past three full years. We’d also like to have interim financials for the current year. For example, if it's June and you have complete financials through the end of May, upload your Profit & Loss (P&L) statement and balance sheet as of May 31st.
- One Year Minimum: If your business is new and you only have one year of financial data, that’s okay. Provide what you have—we can work with it.
For certified reports, we would like to see five full years of financial statements, including your P&L statement and balance sheet, as well as the current year’s interim period up to the most recent month.
Completing the Intake Forms
If you're doing an informational valuation, you will complete one intake form. Key information required includes owner’s compensation—what the owner has made over the last several years. This data is crucial as it helps determine reasonable compensation for calculating the company's value.
Additionally, other data like your NAICS code (industry code) might be needed. If you don’t know your NAICS code, simply note that down. For certified valuations, there are three intake forms to complete. These forms should be filled out by someone with extensive knowledge of the business. Completing these robustly could take about 30 to 45 minutes, whereas the intake forms for standard and essentials will likely take less than 10 minutes.
Using the Secure Portal
Our secure portal ensures that you can upload your confidential information securely. If you have questions during the process, you can use the messaging feature within the portal or call our 1-800 number for assistance.
Ready to get started? Visit our Get Started page and take the first step towards knowing your business's true worth today!
For even more insights, don't forget to explore our Definitive Guide to Business Valuation Reports, where we break down the entire valuation process, ensuring you’re fully prepared every step of the way.
